Active listening has three components:
Paraphrase: Repeat what they have said in your own words. "If I understand correctly... "
Inquire: "You mentioned you found our proposed price unacceptable. Help me understand how you came to this conclusion?"
Acknowledge: "It sounds as if you're quite disappointed with..."
Active listening should be maintained throughout the conversation.
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Asking people to talk and simply listening to them makes you a better conversationalist and extremely likeable.
The basics of active listening are:
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