Maximising Protection Sales Paul Walkinshaw This document is directed at professional financial advisers only and should not be distributed to, or relied upon by retail customers The information is based on our interpretation of current HM Revenue & Customs practise, which can change

2 2 Module Objectives By the end of this training module you will:  Understand the importance of Knowing Your Customer;  Describe the sales process and sales cycle  Demonstrate an understanding of effective communication;  Demonstrate an understanding of the A to B questioning technique.  Demonstrate an understanding of 3 level questioning  Understand how to link products to client’s needs

3 3 Today's Agenda Part 1 = Housekeeping, Introductions & Objectives; Part 2 = Know Your Customer and the Sales Process Part 3 = Effective Communication; Part 4 = Questioning Techniques; Part 5 = Presenting the solution Close

4 Introductions  Full name  How long have you worked in Financial Services and your role  Why are you here?

5 5 Know Your Customer “Where advisers did not sufficiently assess customer needs, for example by failing to adequately establish their customer's attitude to risk or to explain the implications of limiting their advice to the customer's objectives, the advice process was deemed to be inadequate. This is because an inadequate assessment of client needs poses a significant risk to the provision of a suitable recommendation.” Source: FSA: Consumer Research 52 ‘Quality of advice process in firms offering financial advice: findings of mystery shopping research’ Aug 06 Link:

6 The sales process 1. PLAN AND PREPARE 2. OPENING and OBJECTIVE 3. IDENTIFY THE NEEDS 4. PRESENT THE SOLUTIONS 5. OBJECTION HANDLING 6. CONCLUDE THE SALE 7. AFTER SALES FOLLOW-UP

7 The sales process 1. PLAN AND PREPARE 2. OPENING and OBJECTIVE 3. IDENTIFY THE NEEDS 4. PRESENT THE SOLUTIONS 5. OBJECTION HANDLING 6. CONCLUDE THE SALE 7. AFTER SALES FOLLOW-UP  Life Protection  Critical Illness  Income Protection  Mortgage Protection

8 Behavioural Traits of customers  Major General - be brief be bright be gone  Socialiser - involve me and make it fun  Carer - show me you care, listen to me  Detective - be right, be detailed, be patient  Collaborator - works with you to the right outcome

9 Selling the service/ full review  Building rapport  Moving to purpose  Stating process and benefit  Seeking customer confirmation to proceed  Sign-posting generally  Keeping the customer involved

10 Factfinding Information Hard Facts:Soft Facts: Name; Date of Birth; Marital Status; Children; Address; Sex; Etc. Plans; Feelings; Thoughts; Aspirations; Preferences; Dreams; Etc.

11 The egg timer model Feature s How it works What are the benefits Need s Current Views and opinions  Client  Solution

12 Hearing or Listening? Hear: verb (past and past part. heard) 1 perceive (a sound) with the ear. Listen: verb 1 give one’s attention to a sound. 2 make an effort to hear something. SOURCE: Compact Oxford English Dictionary

13 Active Listening You can show that you are listening by: SUMMARISING:  “So what you are saying is….”  “As I understand it….” Benefits of summarising are:  Checks your understanding  Show’s you’ve been listening  Show’s interest

14 You can show that you are listening by: REFLECTING:  “That must have really upset you”  “You felt that…”  “That must of been nice” Benefits of reflecting are:  Brings out speakers feelings  Shows empathy  Shows you understand Active Listening

15 Dealing with Objections Six typical techniques used in dealing with objections: 1.Park it; 2.Answer it and confirm; 3.Accept it and balance it with a benefit; 4.Offer extra information; 5.Reduce it to zero 6.Question it through to agreement.

16 Handling Objective Pace Technique Probe the initial point raised by the customer; Identify the REAL reason – often the first objection raised is a smoke screen! “Apart from that, is there anything else that concerns you” Acknowledge you understand their point of view; Let the customer know that you have heard their concern! “Yes, I can see that is an important issue” Confirm that there is a solution; Having identified one or more areas, you can now answer the objections! “You will be pleased to know that I can offer you…” Engage in conversation about the customers options Now is the time to ensure the customer is happy with your answers! “Are you happy with how this will work for you”

17 Handling Objectives Feel, Felt, Found FEEL; Show empathy to the customers query & you understand their concern! “I can understand how you feel” FELT; Next, reassure them that they are not alone! “Many of my customers have felt the same. However” FOUND; Show the benefits. Customers often object if they haven’t seen them! “They have found that…”

18 A to B Questioning Technique SALES TIP : You need to know 3 things before moving on to the next stage: Identify current standard of living / Annual Household Income / Term of Years Cover Required A What position financially would you want your family to be in?

19 “A” Type Questioning  What position financially, would you want your Spouse/Partner/Family to be in?  What impact would it have on the standard of living for your family?  How long would you want your current level of income to continue for? If you had died yesterday…………”

20 A B What position financially would you want your family to be in? What cover do you Currently have in place? SALES TIP : Keep this high level, this is not flicking through each of their policies at this stage, I mean getting a basic level of understanding as to what the customer has in place A to B Questioning Technique

21  What cover do you currently have in place and what will they provide?  What cover is provided through your employer? At this stage it often appears that the customer may not want their family to face financial hardship in the event of loss of income or early demise but based on what is currently in place it is quite obvious to them that this is what is facing them in the event of anything happening! “B” Type Questioning

22 A B What position financially would you want your family to be in? What cover do you Currently have in place? “The Gap” How big is the Gap? A to B Questioning Technique

23 “The Gap” Type Questions  How do you feel about this?  How would this affect the family and your plans?  Does it concern you enough to want to talk about it further today?

24 The onion model Personality Values Attitudes Behaviours

25 3 level questioning  Understanding the gap between the ideal and what arrangements are already in place  Linking to currents arrangements ask why those arrangements? ( list reasons)  Replay reasons and seek customer view as to the most important  Replay most important and ask “ why” is this most important to you.

26 Consequences  Reiterate what the client would want in the event of death etc  Illustrate the gap  Ask client to explain consequences of taking no action  Follow up with “is that what you want”  Repeat until client concludes what needs to be done  Then return to second need

27 Concept of Benefit Selling “The concept of benefit selling is a straightforward one. It is based on the fact that people buy your products and services not so much for what they are, but for what they do for them. Benefit selling is an approach which should be the basis for any sales presentation. It is an approach which concentrates on highlighting to potential buyers the benefits to them of the product or service being sold”

28 Features, Advantage and Benefit FEATURE BENEFIT “Which means that….”

29 The egg timer model Feature s How it works What are the benefits Need s Current Views and opinions  Client  Solution

30 What we have covered Know Your Customer; Sales Process /Sales Cycle Effective Communication; Questioning Techniques Presenting solutions close

31 Axa Sun Life Services plc distributes and administers financial products and services. It is authorised and regulated by the Financial Services Authority and is a company limited by shares, registered in England No , registered office: 5 Old Broad Street, London, EC2N 1AD. As part of our commitment to quality service, telephone calls may be recorded. ANY QUESTIONS? This document is directed at professional financial advisers only and should not be distributed to, or relied upon by retail customers The information is based on our interpretation of current HM Revenue & Customs practise, which can change Maximising Protection Sales