In Basics of Objection Handling – 3, we learnt the 6-step technique of handling genuine objections. In this article we learn how to apply the 6-step technique in practice.

Let us recall the 6 steps first.

1. Listen to the customer
2. Ask the Customer to repeat his statement or question
3. Repeat the customer’s question and get confirmation that you have understood the customer exactly
4. Present data to the customer on the question raised or seek permission to research and present it later
5. Explain the data from the customer’s point of view
6. Proceed to close

Step 1: Listen to the customer

Customer says: An agent approached me yesterday and he had this wonderful insurance policy that was guaranteeing annual payouts after 10 years for 5 years every year. I would like to buy that policy.

Step 2: Ask the customer to repeat his or her point

Agent: Sir I would like to understand your statement, if you do not mind can you please repeat what you have just said.

Customer: Yesterday, I met an agent who was offering a product that guaranteed income every year for 5 years after 10 years, plus a lump sum at the end of 15 years. I like that product.

Step 3: Repeat back to customer what he or she said

Agent: Sir, with your permission I will just repeat what you have said, so that you can confirm whether I have correctly understood your point. You have told me that you prefer to buy an insurance policy that gives guaranteed returns and you prefer guaranteed returns. Is my understanding right sir?

Customer: Yes you are right.

Step 4: Ask permission to present data on what the customer is seeking

Agent: More and more people are looking for guaranteed returns in these uncertain days and I fully appreciate your desire to do so too. With your permission I would like to show you a few guaranteed return policies. You can take an informed decision subsequently on which plan you would like to purchase. There is no obligation to buy from me. Do I have your permission to present guaranteed return plans to you?

Customer: Yes, please tell me.

Step 5: Explain your customer benefits of your product

Agent: (Describe the features of your plan and highlight the customer benefits, by linking the plan’s features to the customer needs as identified earlier). Ask a controlled question after the product has been presented: Sir do you agree that the product that I just presented meets all the needs that you had mentioned earlier to me. In particular it gives you a payment around the time you will have to spend on your children’s higher education. Do you agree sir?

Customer: Yes it does give me money just when I need it.

Step 6: Proceed to close

Agent: It is my duty to service you to meet your exact needs. Would you like to go for a sum assured of Rs. 15 lakhs as mentioned by you earlier?

Why conversations will not always be as smooth as this

You may think that the conversation will not go as smoothly as stated above. Sure it may not. There are a few conditions for the conversation to go smoothly.

1. The first is that your skill of being able to identify the objection as a genuine objection. If it is actually an insincere objection, the conversation will only lead to arguments. In the second article (Basics of Objection Handling – 2) I had given you a 3-step technique for handling insincere objections. If this objection is actually an insincere objection the 6-step process will not give you results. Choose the objection category carefully.
2. The second is to completely avoid negative words or sentences. If you observe in the script above the whole conversation is positively guided.
3. The third is there should be no disagreement in the conversation.
4. The fourth is at every stage in the 6-step process, the customer’s permission has to be taken before proceeding.
5. The fifth is that you should ask controlled questions that lead to minor agreements. For example in the script above we asked the controlled question: Do you agree that the product meets your need for money around the time your children will be approaching higher education? The obvious answer to this is: YES. You have structured your product to meet this need and there can be no other answer. Such controlled questions lead to minor agreements. Minor agreements go a long way in the customer dropping his or her resistance to buy.
6. The sixth is that the customer should not be made to feel that his desire for a guaranteed return product is wrong and that there are other products where even though a guarantee does not exist, the returns may be higher.
7. And finally you should practice such scripts adequately so that you are in-charge of the conversation. Do not let the customer take charge of the conversation. Being in-charge of the conversation also means you ability to ask the right questions and your ability to listen to the answers.

Practice to attain Excellence

One needs practice to master any technique. My advice is form a group of agents in your branch and practice objection handling every week for 1 hour. For practice and only practice can make you perfect. Do contact me on mail or phone as given on this website if you need any assistance.