service and follow-up for customer retention chapter 13 mcgraw-hill/irwin copyright © 2007 by the...
TRANSCRIPT
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Service and Follow-up for Service and Follow-up for Customer RetentionCustomer Retention
Service and Follow-up for Service and Follow-up for Customer RetentionCustomer Retention
Chapter
Chapter
13
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
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Service Guided by The Golden RuleThe Golden Rule:
Prove you truly care with royal service.Prove what you said in your presentation was the
truth.Take your time to build long-term business
friendships.Realize that customer satisfaction leads to
customer retention.Place the customer’s interest before your own.You can see that ethical service builds true
relationships.
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13-8
The Importance of Service and Follow-Up
How does this chapter refer to service?A. As part of a product, such as insurance or
advertising?
B. In the context of helping others?
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Correct! The answer is “B”
Service Refers To:
B. Helping others
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What Is the Difference between Service and Follow-Up?
Follow-up refers to maintaining contact with a customer (or prospect) in order to evaluate the effectiveness of the product and the satisfaction of the customer.
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13-11
Words of Sales Wisdom and Sales Proverbs
Examples are:You do business with the one you trust and you
trust the one you know.Obtaining new customers and selling more
products to present customers are the ways to increase sales.
It is always easier to sell to a satisfied customer than to an unsatisfied one or a prospect.
The cost of acquiring a new customer is higher than keeping a present customer.
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Words of Sales Wisdom and Sales Proverbs, cont.
More examples are:Customer choice between suppliers has never
been greater.You lose “X” percent of sales or customers per
year.80 percent of your profits come from 20 percent of
your customers (80/20 Rule)People do not care how much you know until they
know how much you care.
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What Do These Sales Proverbs Mean to a Salesperson
Take excellent care of your current customers.
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When Does the Business Relationship Begin?
After you first sell to someone and they become a customer
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Which of the Following Is the Purpose of the Sales Call? Is it:
Solely to make a sale? To help someone?
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Now You Have it! The Purpose Is to:
Help someone by:Solving a problemFulfilling a need
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Is Being More Concerned For Helping Someone than Making the Sale Hard for Most People?
Yes it is! Motivation needs to come from the heart, not
from the bank account.
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Putting the Customer First Requires Salespeople to Have Personal Characteristics That Allow Them to:
Care for the customer Take joy in their work Find harmony in the sales relationship Have patience in closing the sale Be kind to all people Have high moral ethics Be faithful to their word Be fair in the sale Be self-controlled in emotions
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How Would You Answer these Questions:
Do these success characteristics describe you?
Do you have all, or part of them? Can you develop the missing ones?
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Once Again, Are You:
Caring? Joyful? Able to get along with others? Patient? Kind? Ethical? Honest? Fair? Self-controlled?
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These Personal Characteristics Are Important if You Want to:
Have personal friends Have business relationships
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Building a Long-Term Business Friendship
What Is A Business Relationship?A relationship that revolves around business issuesA business relationship is much like a personal
friendship.Build a business relationship in much the same
way you build regular friendships.
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Building a Long-Term Business Friendship
Several things happen between people before they become business friends.1. Self disclosure – sharing a few things about your
client and allowing your client to share a few thing about himself or herself.
2. Acknowledgement – everyone has a desire to be heard, acknowledged, and understood; take time to listen to your client.
3. Attending – pay attention, or attend your client. Use body language to show you are paying attention.
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Building a Long-Term Business Friendship
Several things happen between people before they become business friends, cont.4. Talking – the foundation of any good relationship
is good communication; be a good listener, share information, and allow information to be shared.
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In a Business Friendship, How Can You:
Mistreat a person you consider a friend? Be uncaring, sad, pushy, impatient, rude,
unethical, untruthful, self-centered, and/or emotional?
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13-28
Building a Long-Term Business Friendship
Structure for survival – good relationship needs structure to survive; must be established at the beginning and reaffirmed to avoid confusion.
Avoid control and one-ups – do not try to control your client, do not allow yourself to be controlled
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Relationship Marketing and Customer Retention
Transaction selling – customer not contacted again after sale.
Relationship selling – periodically stays in touch. After sale, customer contacted: Satisfied? Future needs?
Partnering – continually works with customers. Improves sales, operations, and profits.
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The Product and Its Service Component
Customer service:ProductPricePlace
Promotion Exchange transaction After the sale
Expectations determine service quality perception (personal needs, past experiences, salesperson information, word-of-mouth)
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People Buy the Product Plus What? Plus the services (other attributes of the product) A product (good or service) is a bundle of tangible
and intangible attributes, including package, color, and brand, plus the services and even the reputation of the seller.
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Here Are Several Expected Services
Product has no defects Price is fair Product is available when and where needed Correct, honest advertising Transaction handled correctly, quickly,
professionally – the first time Warranty honored
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Excellent Customer Service and Satisfaction Require Technology
Technology and automation is often required to provide excellent service.
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Turn Follow-up and Service Into a Sale
Convert follow-up and service situations into sales.
Follow-up and service help satisfy the needs of customers.
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So, How Does Service Increase Your Sales?
Service increases sales by helping you obtain new customers and sell more to present customers.
Satisfied customers will provide customer referrals.
Referrals are very important for:Future salesMore referrals
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Account Penetration is a Secret to Success
Account penetration – the ability to work and contact people throughout the account discussing your products - knowledge of key personnel and their situation
Determined by:Total and major-brand sales growth in an accountDistribution of the number of products in a product
line, including sizes used or merchandizedLevel of cooperation obtainedYour reputation as the authority on your type of
merchandise for the buyer
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Service Can Keep Your Customers
Concentrate on improving your account penetration.
Contact new accounts frequently on a regular schedule.
Handle customer’s complaints promptly. Always do what you say you will do. Provide service as you would to royalty. Show your appreciation (pg 427).
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Customer Satisfaction and Retention
Customer satisfaction Feelings towards purchase Customer retention – if satisfied, they will buy
again
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Exhibit 13-4: Customer Retention Occurs When the Buyer is Satisfied with Purchases Over Time
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Exhibit 13-5: Sales Come From Present and New Customers
Salespeople are constantly involved in follow-up and service in addition to planning future sales calls to customers; they also spend time prospecting.
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You Lose a Customer–Keep on Trucking
To win back a customer:Visit and investigateBe professionalDon’t be unfriendlyKeep callingTry compensating for loss by increasing sales to
existing accounts
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Increasing Your Customer’s Sales
Have present customers buy more of a product than they currently use
Have present customers buy the same products to use for different purposes
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Increasing Your Customer’s Sales, cont…
To increase sales with a customer: Develop an account penetration program Examine your distribution Keep merchandise in the warehouse and on the shelf Fight for shelf space/face and shelf positioning Assist the product’s users Assist the reseller's salespeople Demonstrate your willingness to help Obtain customer support
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13-45
Returned Goods Make You a Hero
Cheerfully return merchandise following the company’s returned goods policies.
It is in your best interest to return faulty merchandise.
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Handle Complaints Fairly
Customers may be dissatisfied with products for any number of reasons.
“The customer is always right.” Occasionally a dishonest customer may
require you and your company not to honor a request.
Customers should get the benefit of the doubt.
Take care of your customers.
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The Author of Your Textbook Feels the Customer is Not Always Right
Is he correct?
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Is the Customer Always Right?
“Always” is the key word in the phrase.
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How Does One Know What is Right or Wrong in a Business Setting?
What can you use to make a morally ethical decision when dealing with a customer?Company guidelinesLegal lawsWhat the boss saysWhat else?
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Dress in Your Armor
You need to be prepared to meet a few unethical and dishonest people.They may ask you to do something unethical
and/or dishonest.
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What is Meant by “Dress in Your Armor”?
Armor is something that will protect you, but from what?You need protection from a person who is
unethical and/or dishonest with you, such as:A customer or prospectA competitorA co-workerYour boss
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Your Armor Consists of:
Speaking the truth Doing what is right Readiness to discuss what is ethical Trusting you know what is right, honest, and
ethical
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Build a Professional Reputation
Be truthful and follow through on what you tell the customer.
Maintain an intimate knowledge of your firm, its products, and your industry.
Speak well of others. Keep customer information confidential.
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Build a Professional Reputation, cont…
Never take advantage of a customer by using unfair, high-pressure techniques.
Be active in community affairs – make your community a better place.
Think of yourself as a professional and always act accordingly.
Provide service “above and beyond the call of duty.”
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Exhibit 13-9: A Super Sales Success Secret
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Do’s and Don’ts for Business Salespeople
A survey of purchasing agents showed the most important traits that purchasing agents found in their top business sales people: Willingness to go to bat for the buyer Thoroughness and follow-through Knowledge of the firm’s product line Market knowledge and willingness to “keep the buyer posted” Imagination in applying their products to the buyer’s needs Knowledge of the buyer’s product line Preparation for sales calls Regularity of sales calls Diplomacy in dealing with operating departments Technical knowledge of specifications and applications
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The Path to Sales Success: Seek, Knock, Ask, Serve
Seek customers to serve and you will find them.
Knock and people will open their doors. Ask and people will buy. Provide service after the sale and customers
will buy again. Selling requires the three F’s:
FaithFocusFollow-through
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Summary of Major Selling Issues Salespeople increase sales by obtaining new
customers and selling more to present customers.
Customer referrals are the best way to find new prospects.
By building a relationship and partnership, you can provide a high level of customer service.
Customers expect service. To serve customers best, improve account
penetration.
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Summary of Major Selling Issues, cont…
Always strive to help your customers to get the best use from products you have sold them or to help them increase the resale value of these products .
Today’s professional salesperson is oriented toward service.
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End of Chapter 13End of Chapter 13End of Chapter 13End of Chapter 13
Chapter
Chapter
13
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.