THE SELLING PROCESS : 1
How to sell
1 A sale results when the salesman takes the prospect along with him through well-defined steps. The steps are not separate and clear – cut but blend into one integrated process if it can be so called. The steps are:
(a) Pre-approach (b) Approach (c) Interview
(d) Objection (e) Motivation and (f) Close
2 Any worthwhile activity requires advance planning. Pre-approach mens preparing to approach the prospect. If you wish to go to a destination, you decide the mode of reaching it, the time and resources at your disposal, etc. Similarly, if you wish to call on a prospect, you will have to determine why you wish to call on him, when you wish to call on him and how. If you merely wish to sell him life insurance, he will not respond very enthusiastically to your suggestion. But he will be enthusiastic if you can locate his ‘Needs’ and talk about them. To locate his needs you require basic information regarding his income, his habits, his saving capacity, his family position, etc. these facts can be had from a variety of sources; and you may even have to make a personal call on the man himself, and get from him the facts you need to help him in taking a decision.
3 It is good to record all this information on a sheet so that you will have a complete idea of your prospect’s financial position as it stands today. The next job is to project yourself into the future (from the prospect’s viewpoint) and find out the various needs which will arise in his life in times to come, and determine them on the basis of his minimum requirements. This done, the next job is to find out which need is most important and suggest a plan or plans which will meet that need. You should make this “Analysis of Needs” very carefully. The sum assured, of course, will be determined by his capacity to save. Selling according to need is the first step in efficient service. If you make the sale first in your own mind, you will find it easy to make the sale to the prospect.
4 It is advisable to prepare a presentation in black and white in Sheet. All these preparations (pre-approach) including a check up on the time most suitable to visit him, will make your call meaningful and give you the confidence borne out to your ‘preparedness’. You have now a definite advantage over the prospect, as you know the points, which would appeal to him. You are ready to meet him.
5 When you knock on the ma’s door and are face to face with him, the dynamic phase of the sale begins. The approach can be varied. Three facts, however, are to be borne in mind.
(1) Greetings (2) Introduction (if calling on a stranger) and (3) Purpose. That you are calling on him for life insurance should be made known at the very earliest. Remember, you are not begging for a policy, you are calling on him to render him a valuable service to ensure financial security for him and his family.
6 You started the game and opened the talk explaining the purpose of your call in such a way (offering a service, which is valuable to him) as to arouse his interest to talk to you. In a majority of cases, you may expect him to first come out with a ‘No’. this is to be expected in 9 out of 10 cases.
7 At this juncture of approach when a ‘No’ is received from the prospect, an astute salesman would not be in a hurry to convert the ‘No’ into ‘Yes’. The purpose of approach is not to sell insurance, but to sell an interview. Your job is to get am opportunity to talk when you can explain what you want the prospect to think about, and get an opportunity for further discussion to remove his doubts or fears. So, avoid any argument. Ignore the ‘No’. Exchange a few pleasantries ant at first opportunity launch into a sales discussion, explaining how he will benefit generally by your suggestions.
8 The interview should normally run along well defined lines:
i) Firstly, establish the need of the prospect and get his agreement that he realizes the need to ensure future security of his family.
ii) Secondly, compliment him on his savings (if any) to meet these needs.
iii) Then unfold your proposition or plan and stress, in what manner it is better or superior to other plans of savings (you now are in the midst of an interview).
9 Follow the simple rules:
i) Do not talk more than necessary – but ask questions, and make the prospect talk.
ii) Listen to the prospect’s point of view carefully, without interruption or argument. Restate what he says, and, ask him if you have understood him correctly.
iii) Ask questions about his plans, dreams, hopes, and aspirations and needs in such a way as to get ‘yes’ responses.
iv) Make your sales talk interesting to him. Tell a true story of how life insurance has helped families in various situations and how families have suffered without it.
v) Use pictorial aids, graphs and then the written presentations. Engage the prospect’s eyes by showing cuttings of LIC’s advertisements, etc. Let him make the calculations, if any. This ensures his concentrated attention.
vi) Let you advice be in the best interest of the prospect – not your interest. Let him feel that you are a friend to him and protecting his interests. Sell the right plan, for the right amount, and the right term. This is the best service you can give, to start with.
10 Make the story have a personal appeal. Use first person names of his children or relatives. That will make the story more appealing.
11 The interview should be a discussion in which the prospect asks questions and gets his doubts cleared; and you gradually help him to take his decisions as to which plan of insurance will meet his needs. It should never be a dull monologue from your side.
12 Most salesmen prepare their presentations carefully. This ensures that they do not fumble for ideas or the right words. The ideas, too come in the most natural and logical sequence. Lastly, a prepared sales talk can be given with more enthusiasm and conviction than a talk without preparation. Prepare yourself thoroughly before every sales interview.
A well-prepared approach ensures a favorable interview.
STUDY UNIT – 11
What is the role of OBJECTIONS in a sale? How can we MOTIVATE the prospect? How can you ‘CLOSE’ a case and get the proposal? If you know the answers to these and the following questions, you will be a skilled salesman. The paragraph numbers shown in brackets will help you in this direction.
Questions:
1 “Objections make it easy for an agent to sell”. Is this correct?
Why? (3)
2 What role does motivation play in the sale of life insurance ?(11)
3 Why is ‘Yes…. But’ method of answering objections effective? (9)
4 Give two questions, the prospects’ positive reply to which shoes that he is ready to sign the proposal. (12)
5 Fill in the blanks:
To sell successfully, you have to make the prospect feel that he has taken the __________________to buy, and that your role in the process was only to ____________________ him by giving him the ____________________ he needed. (10)
THE SELLING PROCESS : II
OBJECTIONS MOTIVATION CLOSE
1 As a beginner in the selling line, you may be afraid that the prospect will raise one objection or another. You fear that you will not be able to answer them; but you would do well to remember that objections are a part of every sale. In fact, if prospects did not object, there would be no need for salesman. People would then buy their own, just as they buy a litre of milk or a Aspro tablet to satisfy their immediate needs. Then again, if the prospect sits silently, how will you know why he is not buying? But if he tells you his reason (objection), you know what type of information can satisfy him.
2 The entire selling process is, therefore interspersed with objections. At the stage of approach itself the prospect may say – ‘I do not believe in Life Insurance’, ‘I do not need Life Insurance’, and the like. Such objections are not against Life Insurance but rather against the salesman whom he wants to put off gracefully, or are a sign of indecision, or of the fear of being “forced” or “tricked” into buying.
3 Then, there are objections during the interview, like ‘I pay more than what I get’, ‘it is advantageous only if I die’, ‘Meet me after six months’. Such objections which come up during the main discussion are ral objections. However, their intention is not to put you off. Quite the contrary. The prospect wants you to convince him; he wants you to give him detailed information that will remove his fears and doubts and to back up his unconscious desire to buy. Every objection tells you about the prospects thinking and gives you an opportunity to remove his mental blocks. Indeed, a prospect who puts forward an objection is actually asking you to give one more reason to buy. A true agent should therefore welcome objections.
4 Then there are objections raised at the closing stage, such as, ‘I will think it over’, ‘I will consult my father’, ‘see me next month when I get my confirmation/increment/promotion, etc.’these objections reveal an inability to take a major decision.
4 Depending upon the stage at which the objections are raised, they can be dealt with effectively.
5 Objections at the approach stage need no elaborate answer. You have to reassure him that you are not going to force him, and the decision will be his. You only want him to consider what you say. You can say, for example, ‘If you know you need life insurance, Mr Dev, you would have bought it on your own; you know, many times Doctors are “too busy” to treat themselves. This applies to most men. You will find it worthwhile sparing just 15 minutes to consider how your lifetime’s earning should be best utilized. The ultimate decision is yours, but it may be a valuable decision for you and your family…’’ or you may not believe in life insurance, Mr Jose, but I am sure, you believe in Pramod’s education. Which school is he attending?
6 However, objections, which crop up at the stage of interview, cannot be treated in a summary manner. The answers to these must be complete and convincing to the prospect. He wants you to help him in taking a decision to buy. His decision needs to be fortified by your expert knowledge. His doubts or difficulties need to be removed or clarified.
7 Then again, objections at the close need a brief answer, but with an attempt at closing the case, e.g., ‘Mr Patel, your father will never object to a wise decision to save money. Will this evening be suitable for a medical examination or tomorrow morning?’’ (Give him tow affirmative choices, either of which takes him nearer to the close).
8 In answering objections bear in mind never to get into an argument. The “Yes…..but” method is the most effective. You agree (say, yes’) in principle with what the prospect says under circumstances assumed by him; “but”, you say. “the actual circumstances are different” and then convey you point. The prospect is bound to be receptive to such an open Give and Take in discussion. For example, you may say: “Mr Prospect, I agree that conditions are hard and people have difficulty in saving; but imagine how much more difficult it will be if your family has to carry on without you.
9 The secret of successful selling is to make the prospect feel that he has taken the decision – you only help him in the process by answering his objections.
10 Objections, however well and logically answered, will not get you a decision. In selling an appeal to the heart is more fruitful than an appeal to the head. The prospect has to be motivated to action this can be best done by telling him true life stories or showing appealing pictures from which he can visualize how his own life situation will be without insurance. This will move him more surely to action. Life Insurance is bought for the prime reason of protecting the loved ones, affording a good start in life to the children, duty to aged parents, or perhaps a desire for self preservation in old age. Therefore, a sale can be accomplished only when an appeal is made to one of these motives, that is, an appeal to the heart. It is important to understand the psychology of each prospect so that you can speak on those points, which appeal to him most.
11 When the sale reaches this pitch, the time for closing the deal is at hand. The ‘close’ has to be sensed and timed, because very few prospects will, of their own accord, say ‘I will insure’. The salesman, sensing the close, takes the prospect’s positive decision for granted by asking for his implied (not direct consent). “Will you pay the premium by cash or cheque ?” ‘Do you have your school certificate at hand now or can you give it tomorrow ?’ (Affirmative choice). A positive answer to any of these questions is an indication to go ahead. If the prospect does not respond favorably to these first trial close, you should not conclude that interview before making three or four more attempts to secure the proposal. These attempts will be made on different appeals (i) premium rate may go up because of age change; ii) remove his fear that he suffers no loss if premiums are interrupted due to temporary difficulties, because the policy remains paid-up or can be revived; (iii) if he undertakes the big obligation of paying the premium then LIC undertakes the big obligation on paying the entire Sum Assured; (iv) he may not be able to get the insurance tomorrow if there is any change in his health. An interview is not complete without these attempts. These techniques help in getting the prospect’s signature on the proposal form, and you should not give up without trying them.
Objections are stepping Stones to a Sale
How to sell
1 A sale results when the salesman takes the prospect along with him through well-defined steps. The steps are not separate and clear – cut but blend into one integrated process if it can be so called. The steps are:
(a) Pre-approach (b) Approach (c) Interview
(d) Objection (e) Motivation and (f) Close
2 Any worthwhile activity requires advance planning. Pre-approach mens preparing to approach the prospect. If you wish to go to a destination, you decide the mode of reaching it, the time and resources at your disposal, etc. Similarly, if you wish to call on a prospect, you will have to determine why you wish to call on him, when you wish to call on him and how. If you merely wish to sell him life insurance, he will not respond very enthusiastically to your suggestion. But he will be enthusiastic if you can locate his ‘Needs’ and talk about them. To locate his needs you require basic information regarding his income, his habits, his saving capacity, his family position, etc. these facts can be had from a variety of sources; and you may even have to make a personal call on the man himself, and get from him the facts you need to help him in taking a decision.
3 It is good to record all this information on a sheet so that you will have a complete idea of your prospect’s financial position as it stands today. The next job is to project yourself into the future (from the prospect’s viewpoint) and find out the various needs which will arise in his life in times to come, and determine them on the basis of his minimum requirements. This done, the next job is to find out which need is most important and suggest a plan or plans which will meet that need. You should make this “Analysis of Needs” very carefully. The sum assured, of course, will be determined by his capacity to save. Selling according to need is the first step in efficient service. If you make the sale first in your own mind, you will find it easy to make the sale to the prospect.
4 It is advisable to prepare a presentation in black and white in Sheet. All these preparations (pre-approach) including a check up on the time most suitable to visit him, will make your call meaningful and give you the confidence borne out to your ‘preparedness’. You have now a definite advantage over the prospect, as you know the points, which would appeal to him. You are ready to meet him.
5 When you knock on the ma’s door and are face to face with him, the dynamic phase of the sale begins. The approach can be varied. Three facts, however, are to be borne in mind.
(1) Greetings (2) Introduction (if calling on a stranger) and (3) Purpose. That you are calling on him for life insurance should be made known at the very earliest. Remember, you are not begging for a policy, you are calling on him to render him a valuable service to ensure financial security for him and his family.
6 You started the game and opened the talk explaining the purpose of your call in such a way (offering a service, which is valuable to him) as to arouse his interest to talk to you. In a majority of cases, you may expect him to first come out with a ‘No’. this is to be expected in 9 out of 10 cases.
7 At this juncture of approach when a ‘No’ is received from the prospect, an astute salesman would not be in a hurry to convert the ‘No’ into ‘Yes’. The purpose of approach is not to sell insurance, but to sell an interview. Your job is to get am opportunity to talk when you can explain what you want the prospect to think about, and get an opportunity for further discussion to remove his doubts or fears. So, avoid any argument. Ignore the ‘No’. Exchange a few pleasantries ant at first opportunity launch into a sales discussion, explaining how he will benefit generally by your suggestions.
8 The interview should normally run along well defined lines:
i) Firstly, establish the need of the prospect and get his agreement that he realizes the need to ensure future security of his family.
ii) Secondly, compliment him on his savings (if any) to meet these needs.
iii) Then unfold your proposition or plan and stress, in what manner it is better or superior to other plans of savings (you now are in the midst of an interview).
9 Follow the simple rules:
i) Do not talk more than necessary – but ask questions, and make the prospect talk.
ii) Listen to the prospect’s point of view carefully, without interruption or argument. Restate what he says, and, ask him if you have understood him correctly.
iii) Ask questions about his plans, dreams, hopes, and aspirations and needs in such a way as to get ‘yes’ responses.
iv) Make your sales talk interesting to him. Tell a true story of how life insurance has helped families in various situations and how families have suffered without it.
v) Use pictorial aids, graphs and then the written presentations. Engage the prospect’s eyes by showing cuttings of LIC’s advertisements, etc. Let him make the calculations, if any. This ensures his concentrated attention.
vi) Let you advice be in the best interest of the prospect – not your interest. Let him feel that you are a friend to him and protecting his interests. Sell the right plan, for the right amount, and the right term. This is the best service you can give, to start with.
10 Make the story have a personal appeal. Use first person names of his children or relatives. That will make the story more appealing.
11 The interview should be a discussion in which the prospect asks questions and gets his doubts cleared; and you gradually help him to take his decisions as to which plan of insurance will meet his needs. It should never be a dull monologue from your side.
12 Most salesmen prepare their presentations carefully. This ensures that they do not fumble for ideas or the right words. The ideas, too come in the most natural and logical sequence. Lastly, a prepared sales talk can be given with more enthusiasm and conviction than a talk without preparation. Prepare yourself thoroughly before every sales interview.
A well-prepared approach ensures a favorable interview.
STUDY UNIT – 11
What is the role of OBJECTIONS in a sale? How can we MOTIVATE the prospect? How can you ‘CLOSE’ a case and get the proposal? If you know the answers to these and the following questions, you will be a skilled salesman. The paragraph numbers shown in brackets will help you in this direction.
Questions:
1 “Objections make it easy for an agent to sell”. Is this correct?
Why? (3)
2 What role does motivation play in the sale of life insurance ?(11)
3 Why is ‘Yes…. But’ method of answering objections effective? (9)
4 Give two questions, the prospects’ positive reply to which shoes that he is ready to sign the proposal. (12)
5 Fill in the blanks:
To sell successfully, you have to make the prospect feel that he has taken the __________________to buy, and that your role in the process was only to ____________________ him by giving him the ____________________ he needed. (10)
THE SELLING PROCESS : II
OBJECTIONS MOTIVATION CLOSE
1 As a beginner in the selling line, you may be afraid that the prospect will raise one objection or another. You fear that you will not be able to answer them; but you would do well to remember that objections are a part of every sale. In fact, if prospects did not object, there would be no need for salesman. People would then buy their own, just as they buy a litre of milk or a Aspro tablet to satisfy their immediate needs. Then again, if the prospect sits silently, how will you know why he is not buying? But if he tells you his reason (objection), you know what type of information can satisfy him.
2 The entire selling process is, therefore interspersed with objections. At the stage of approach itself the prospect may say – ‘I do not believe in Life Insurance’, ‘I do not need Life Insurance’, and the like. Such objections are not against Life Insurance but rather against the salesman whom he wants to put off gracefully, or are a sign of indecision, or of the fear of being “forced” or “tricked” into buying.
3 Then, there are objections during the interview, like ‘I pay more than what I get’, ‘it is advantageous only if I die’, ‘Meet me after six months’. Such objections which come up during the main discussion are ral objections. However, their intention is not to put you off. Quite the contrary. The prospect wants you to convince him; he wants you to give him detailed information that will remove his fears and doubts and to back up his unconscious desire to buy. Every objection tells you about the prospects thinking and gives you an opportunity to remove his mental blocks. Indeed, a prospect who puts forward an objection is actually asking you to give one more reason to buy. A true agent should therefore welcome objections.
4 Then there are objections raised at the closing stage, such as, ‘I will think it over’, ‘I will consult my father’, ‘see me next month when I get my confirmation/increment/promotion, etc.’these objections reveal an inability to take a major decision.
4 Depending upon the stage at which the objections are raised, they can be dealt with effectively.
5 Objections at the approach stage need no elaborate answer. You have to reassure him that you are not going to force him, and the decision will be his. You only want him to consider what you say. You can say, for example, ‘If you know you need life insurance, Mr Dev, you would have bought it on your own; you know, many times Doctors are “too busy” to treat themselves. This applies to most men. You will find it worthwhile sparing just 15 minutes to consider how your lifetime’s earning should be best utilized. The ultimate decision is yours, but it may be a valuable decision for you and your family…’’ or you may not believe in life insurance, Mr Jose, but I am sure, you believe in Pramod’s education. Which school is he attending?
6 However, objections, which crop up at the stage of interview, cannot be treated in a summary manner. The answers to these must be complete and convincing to the prospect. He wants you to help him in taking a decision to buy. His decision needs to be fortified by your expert knowledge. His doubts or difficulties need to be removed or clarified.
7 Then again, objections at the close need a brief answer, but with an attempt at closing the case, e.g., ‘Mr Patel, your father will never object to a wise decision to save money. Will this evening be suitable for a medical examination or tomorrow morning?’’ (Give him tow affirmative choices, either of which takes him nearer to the close).
8 In answering objections bear in mind never to get into an argument. The “Yes…..but” method is the most effective. You agree (say, yes’) in principle with what the prospect says under circumstances assumed by him; “but”, you say. “the actual circumstances are different” and then convey you point. The prospect is bound to be receptive to such an open Give and Take in discussion. For example, you may say: “Mr Prospect, I agree that conditions are hard and people have difficulty in saving; but imagine how much more difficult it will be if your family has to carry on without you.
9 The secret of successful selling is to make the prospect feel that he has taken the decision – you only help him in the process by answering his objections.
10 Objections, however well and logically answered, will not get you a decision. In selling an appeal to the heart is more fruitful than an appeal to the head. The prospect has to be motivated to action this can be best done by telling him true life stories or showing appealing pictures from which he can visualize how his own life situation will be without insurance. This will move him more surely to action. Life Insurance is bought for the prime reason of protecting the loved ones, affording a good start in life to the children, duty to aged parents, or perhaps a desire for self preservation in old age. Therefore, a sale can be accomplished only when an appeal is made to one of these motives, that is, an appeal to the heart. It is important to understand the psychology of each prospect so that you can speak on those points, which appeal to him most.
11 When the sale reaches this pitch, the time for closing the deal is at hand. The ‘close’ has to be sensed and timed, because very few prospects will, of their own accord, say ‘I will insure’. The salesman, sensing the close, takes the prospect’s positive decision for granted by asking for his implied (not direct consent). “Will you pay the premium by cash or cheque ?” ‘Do you have your school certificate at hand now or can you give it tomorrow ?’ (Affirmative choice). A positive answer to any of these questions is an indication to go ahead. If the prospect does not respond favorably to these first trial close, you should not conclude that interview before making three or four more attempts to secure the proposal. These attempts will be made on different appeals (i) premium rate may go up because of age change; ii) remove his fear that he suffers no loss if premiums are interrupted due to temporary difficulties, because the policy remains paid-up or can be revived; (iii) if he undertakes the big obligation of paying the premium then LIC undertakes the big obligation on paying the entire Sum Assured; (iv) he may not be able to get the insurance tomorrow if there is any change in his health. An interview is not complete without these attempts. These techniques help in getting the prospect’s signature on the proposal form, and you should not give up without trying them.
Objections are stepping Stones to a Sale
DHARMENDRA RABARI (LIC AGENT)
+91-9377141237.
JAY CONSULTANCY
53- MAHAVEER NAGAR,
53- MAHAVEER NAGAR,
BEHIND JALARAM TEMPLE,
GAYATRI NAGAR ROAD,
GOTRI, VADODARA – 390021.
jayraj2785@yahoo.co.in. jayconsultancy11@yahoo.com
http://www.licindia.com/
GAYATRI NAGAR ROAD,
GOTRI, VADODARA – 390021.
jayraj2785@yahoo.co.in. jayconsultancy11@yahoo.com
http://www.licindia.com/
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