Part 3 - The Biggest Mistakes Salespeople Make On The Telephone

In my last blog I talked about how crucial it is to have an opening statement that is compelling, that will engage your client or prospect. The open-ended question is a very effective tool for drawing out valuable information that helps you understand your existing or prospective clients.  A litany of closed questions will typically do the opposite. They result in ‘yes’ and ‘no’ answers, which bring a hasty end to the conversation. Closed questions are not to be avoided. They are just as effective as open-ended questions but you have to know the right time and place to use them.

In my stockbroker days I always started a conversation by asking if the person had a minute to talk. If they did, my next question was, “Have you ever been in the stock market before?” At that point in the call I was only looking for a yes or no. The timing of this closed question was very important. The direction my presentation took depended on how much experience the person had. If I got a “No” I went down one path. If the prospect said, “Yes” I went down another. Based on the closed question, the conversation logically moved to open-ended questions that helped paint the real picture.

I got a call recently from local investment company. The financial advisor started the conversation off with “Hi, I am “Jim Smith” from XYZ Investment Firm. I work with individuals for investment planning, is this something you would consider?” I told him no. He came back with, “Do you currently work with someone?” I said yes. Then he asked “Are you happy with what you are doing?” Again I said yes. The fellow thanked me for my time and said, “Goodbye.”

This call is not out of the ordinary. I get a lot of them just like it. Some of you might think this conversation is normal and reasonable. I’ll show you why the closed question must be followed by questions that can and will reveal vital information that a string of closed questions cannot.       

After “Jim” hung up I realized I hadn’t spoken to my advisor for over nine months. I didn’t really know if he had me on track or not. Given the volatility of the financial markets today, much can be lost in nine months. I thought about my financial advisor and if my current plan was right for me. I called and asked him about what we were doing. He told me to stop automatic investing in a mutual fund and keep the money in cash until the market settles down. The obvious thought came to my head - what if I hadn’t made the call. If Jim Smith had posed a couple of well-crafted open-ended questions he could have exposed the shortcomings of my current advisor. He might well have gotten some business out of our call.   

I’d like to suggest some questions that Jim could have asked to engage me in a conversation:

1)    Who are you currently working with?
2)    How long have you been working with your advisor?
3)    When was the last time you sat down with your advisor and evaluated your progress?
4)    What are the biggest concerns you have about your financial future?
5)    When are you planning on retiring?

These are some simple and straightforward questions that help you engage your prospects. You can efficiently and effectively learn more about your prospects and their needs. In a later blog, we will talk about the art of asking questions that will help you work through objections, leading to more appointments.