Service and Customer Service and Customer Retention - Chapter 12Retention - Chapter 12

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THE FOLLOW UP AND THE THE FOLLOW UP AND THE IMPORTANCE OF SERVICES. IMPORTANCE OF SERVICES.

The salesperson does not end the The salesperson does not end the relationship with customer once a sale has relationship with customer once a sale has been completed. been completed.

But instead the salesperson wants to But instead the salesperson wants to pursue a never ending relationship with pursue a never ending relationship with the customer. the customer.

By providing an effective and efficient By providing an effective and efficient service to the customer, you can probably service to the customer, you can probably look forward to recurring sales and look forward to recurring sales and referralsreferrals

How does a salesperson help How does a salesperson help customers? customers?

By following up by By following up by maintaining maintaining contact with the customer or contact with the customer or prospect in order:prospect in order: To evaluate the effectiveness of your To evaluate the effectiveness of your

company’s product and the satisfaction company’s product and the satisfaction the customer gets, is the final answer.the customer gets, is the final answer.

Building long term business Building long term business relationshiprelationship

If the salesperson is to have opportunity of If the salesperson is to have opportunity of selling again, the customer must answer selling again, the customer must answer positively to question like these:positively to question like these:

Can I trust this salesperson?Can I trust this salesperson? Did the salesperson and the product do as Did the salesperson and the product do as

what was presented?what was presented? Does the salesperson truly care about Does the salesperson truly care about

their customer?their customer? The diagram explains the importance of The diagram explains the importance of

follow up and service.follow up and service.

RELATIONSHIP MARKETING (RM) RELATIONSHIP MARKETING (RM) AND CUSTOMER RETENTIONAND CUSTOMER RETENTION

RM believes that the idea that important RM believes that the idea that important customers need continuous attention. customers need continuous attention.

The company would like to show to the The company would like to show to the customer that it has the means to serve customer that it has the means to serve the key account’s (corporate customers) the key account’s (corporate customers) needs in a better way, provided it has a needs in a better way, provided it has a committed (bonded) relationship. committed (bonded) relationship.

The company’s goal is to get quality The company’s goal is to get quality customers and more important to retain customers and more important to retain them in short and long run.them in short and long run.

THE PRODUCT AND ITS SERVICE THE PRODUCT AND ITS SERVICE PARTSPARTS

People buy more than a set of People buy more than a set of physical attributes. Attributes include physical attributes. Attributes include packaging, color, brand, the kind of packaging, color, brand, the kind of service offered’, and reputation and service offered’, and reputation and goodwill of the seller.goodwill of the seller.

THE PRODUCT AND ITS SERVICE THE PRODUCT AND ITS SERVICE PARTSPARTS

Buyers usually believe an Buyers usually believe an organization ought to deliver a organization ought to deliver a certain level of service to the certain level of service to the customers when they purchase customers when they purchase products. Below are lists of service products. Below are lists of service expected by customers:expected by customers:

Below are lists of service expected by customers:Below are lists of service expected by customers: Product – Defect free productProduct – Defect free product Price – price is reasonablePrice – price is reasonable Place – the product can be purchased anywhere.Place – the product can be purchased anywhere. Promotion – correct, honest information in Promotion – correct, honest information in

advertisement and product labels from the salespeople.advertisement and product labels from the salespeople. Exchange transaction – handled correctly, quickly and Exchange transaction – handled correctly, quickly and

professionally for the first time.professionally for the first time. After sale service – After sale service –

warranty honoured, warranty honoured, repairs or exchanges done willinglyrepairs or exchanges done willingly Written information on product easily available.Written information on product easily available. Easy access to company salesperson or their company Easy access to company salesperson or their company

employees.employees. Technical staff ready to assist onsite or via telephone. (Toll Technical staff ready to assist onsite or via telephone. (Toll

free 1-800-....)free 1-800-....)

THE PRODUCT AND ITS SERVICE THE PRODUCT AND ITS SERVICE PARTSPARTS

WHAT IS CUSTOMER SERVICEWHAT IS CUSTOMER SERVICE

Customer service refers to the activities and Customer service refers to the activities and programs the seller provides to make the programs the seller provides to make the relationship satisfying for the customer.relationship satisfying for the customer.

The activities and programs add value to the The activities and programs add value to the customer relationship with the seller. customer relationship with the seller.

Warranties, credit, speedy delivery, invoices, Warranties, credit, speedy delivery, invoices, financial statements, online ordering, free financial statements, online ordering, free parking space, gift, gift wrapping and having parking space, gift, gift wrapping and having the required stock when customer requires. the required stock when customer requires.

DETERMINING QUALITY DETERMINING QUALITY SERVICESERVICE

The quality of service in an organization The quality of service in an organization and its salespeople do provide must be and its salespeople do provide must be based on its customers’ expectation.based on its customers’ expectation.

Customers expect a certain level of Customers expect a certain level of service quality from the seller. service quality from the seller.

Their expectations frequently are based Their expectations frequently are based on information gathered, the on information gathered, the information the salesperson provides, information the salesperson provides, past experiences, verbal and personal past experiences, verbal and personal needs. needs.

CUSTOMER SATISFACTION CUSTOMER SATISFACTION AND RETENTIONAND RETENTION

Customer Satisfaction refers to the feeling Customer Satisfaction refers to the feeling towards the purchase of the product or towards the purchase of the product or service.service.

If satisfied, chances of selling to the If satisfied, chances of selling to the customer in the future increase. customer in the future increase.

If satisfied with repeat purchases, If satisfied with repeat purchases, customers tend to continue to buy from customers tend to continue to buy from the same salesperson.the same salesperson.

Satisfaction can result in a customer being Satisfaction can result in a customer being loyal to your business, so much it would loyal to your business, so much it would make it difficult for another seller or make it difficult for another seller or business to take your customer away.business to take your customer away.

Expectation of purchase

Actual experiences with purchases

Perceived purchase

Satisfaction

Repeat purchases

Customer retention

Customers retention occurs when the buyer is satisfied with recurring purchases

HOW DOES SERVICE INCREASE HOW DOES SERVICE INCREASE YOUR SALES?YOUR SALES?

By obtaining new customers and By obtaining new customers and selling more products to present selling more products to present customers. customers.

The best method for obtaining new The best method for obtaining new customers is by way of referrals customers is by way of referrals when they are happy with the service when they are happy with the service offered by the salesperson.offered by the salesperson.

1. Prospecting

2. Preapproach

3. Approach

4. Presentation Participation Proof Visual Aids

Persuasive communication Demonstration

Dramatization

5. Trial Close

6. Determine objections

7. Meet objections

8.Trial close

9.Close

10.Follow up

Sales Process DiagramSales Process Diagram

As explained in the diagram in the slide before, As explained in the diagram in the slide before, after step 10 of the selling process, after step 10 of the selling process,

The salesperson moves back to the second step The salesperson moves back to the second step or preapproach when it is time to plan the next or preapproach when it is time to plan the next sales call on a customer or prospect.sales call on a customer or prospect.

The salesperson also is prospecting if needed for The salesperson also is prospecting if needed for in his or her type of sales. in his or her type of sales.

Thus, the salesperson is involved in the ongoing Thus, the salesperson is involved in the ongoing process of finding new customers and taking care process of finding new customers and taking care of present customers. of present customers.

With this in mind, let’s examine several services With this in mind, let’s examine several services and follow up techniques next.and follow up techniques next.

Account Penetration Account Penetration

What is an Account?What is an Account?An account is an important client or An account is an important client or

customer (usually a company) of the customer (usually a company) of the salesperson and that makes an salesperson and that makes an important business contribution in sales important business contribution in sales to your company. An Account is a major to your company. An Account is a major customer whose business is important customer whose business is important to your company success in business. To to your company success in business. To lose their business could have bad effect lose their business could have bad effect on your sales revenue.on your sales revenue.

What is Account Penetration?What is Account Penetration?

An Account Penetration is the ability An Account Penetration is the ability of a salesperson to work and contact of a salesperson to work and contact people throughout the account, people throughout the account, discussing your products. Successful discussing your products. Successful penetration of an account allows you penetration of an account allows you to properly service that account by to properly service that account by identifying its needs and problems.identifying its needs and problems.

How To Maximize Account How To Maximize Account Penetration And Increase Your Penetration And Increase Your

Sales?Sales? Maximizing Maximizing account penetrationaccount penetration is one of the is one of the

most important functions in sales. The greater the most important functions in sales. The greater the increase in increase in account penetrationaccount penetration has an enormous has an enormous impact on revenues and profitability.impact on revenues and profitability.

Think about it – if every one of your company's Think about it – if every one of your company's salespeople sold every product and service in salespeople sold every product and service in their portfolio (group) to every business unit, their portfolio (group) to every business unit, department, and division of every account, what department, and division of every account, what kind of numbers would they produce? kind of numbers would they produce?

Design job around the key role undertaken by the Design job around the key role undertaken by the salesperson rather then asking them acquire salesperson rather then asking them acquire technical knowledge which can be handled by a technical knowledge which can be handled by a technician or technical specialist or sales technician or technical specialist or sales engineer.engineer.

THE VALUE OF CUSTOMER THE VALUE OF CUSTOMER RETENTIONRETENTION

Customer retention is not only a cost Customer retention is not only a cost effective and profitable strategy, but effective and profitable strategy, but in today's business world it is a in today's business world it is a necessity. necessity.

THE VALUE OF CUSTOMER THE VALUE OF CUSTOMER RETENTIONRETENTION

We need to rethink our overall customer We need to rethink our overall customer strategies, after all many marketing or sales strategies, after all many marketing or sales experts will tell you that it is five times more experts will tell you that it is five times more profitable to spend marketing and advertising profitable to spend marketing and advertising dollars to retain current customers than it is to dollars to retain current customers than it is to acquire new customers.acquire new customers.

Sophisticated technology and database equipment Sophisticated technology and database equipment has made it possible for specialized firms to make has made it possible for specialized firms to make attempts at customer retention through database attempts at customer retention through database marketing programs. Establishing a detailed client marketing programs. Establishing a detailed client database will allow these companies to keep track database will allow these companies to keep track of personal information and individual preferences of personal information and individual preferences of all their customers. This enables them to of all their customers. This enables them to provide better service and value. provide better service and value.

Customer Retention Customer Retention StrategiesStrategies

A few value-added strategies that you can use A few value-added strategies that you can use include: include: Membership cards and programs that entitle Membership cards and programs that entitle

your customers to special offers, discounts, or your customers to special offers, discounts, or preferential treatment. preferential treatment.

Welcome, acknowledgement, sales recognition, Welcome, acknowledgement, sales recognition, thank you statements. thank you statements.

After sales satisfaction and complaint inquiries After sales satisfaction and complaint inquiries and surveys. and surveys.

Event oriented communications in which the Event oriented communications in which the customer is genuinely interested. customer is genuinely interested.

Enhanced and empowered customer, after sales, Enhanced and empowered customer, after sales, and technical support. and technical support.

Customer Complaints Customer Complaints

Three important aspects of the Three important aspects of the complaint process are:complaint process are:Actively seeking customer complaint.Actively seeking customer complaint.Recognizing the type of customer that is Recognizing the type of customer that is

complaining.complaining.Responding appropriately based on the Responding appropriately based on the

type of complain.type of complain.

Types of Complaining Types of Complaining CustomersCustomers

The Meek CustomerThe Meek Customer. Generally, will not complain.. Generally, will not complain.

The Aggressive CustomerThe Aggressive Customer. Opposite of the Meek Customer. Readily . Opposite of the Meek Customer. Readily complains, often loudly and at length.complains, often loudly and at length.

The High-Roller CustomerThe High-Roller Customer. Expects the absolute best and is willing to . Expects the absolute best and is willing to pay for it. Likely to complain in a reasonable manner, unless a hybrid of pay for it. Likely to complain in a reasonable manner, unless a hybrid of the Aggressive Customer. the Aggressive Customer.

The Rip-Off CustomerThe Rip-Off Customer. The goal is not to get the complaint satisfied but . The goal is not to get the complaint satisfied but rather to win by getting something the customer is not entitled to receive. rather to win by getting something the customer is not entitled to receive. A constant and repetitive "not good enough" response to efforts to satisfy A constant and repetitive "not good enough" response to efforts to satisfy this customer is a sure indicator of a rip-off artist. this customer is a sure indicator of a rip-off artist.

The Chronic Complainer CustomerThe Chronic Complainer Customer. Is never satisfied; there is always . Is never satisfied; there is always something wrong. This customer's mission is to whine. Yet, he is your something wrong. This customer's mission is to whine. Yet, he is your customer, and as frustrating as this customer can be, he cannot be customer, and as frustrating as this customer can be, he cannot be dismissed. dismissed.

Handling Customer Handling Customer ComplaintsComplaints

All good managers want to hear All good managers want to hear about every complaint their about every complaint their customers have.customers have.

Only when a complaint has been Only when a complaint has been expressed can the appropriate expressed can the appropriate corrective action be taken.corrective action be taken.

Without customer complaints Without customer complaints management often assumes that management often assumes that everything is okay. everything is okay.

Customer Complaint Customer Complaint ProcedureProcedure

Consider the following eight-step customer Consider the following eight-step customer complaint procedure for handling customer complaint procedure for handling customer complaints in your organization: complaints in your organization: Provide customers with the opportunity to Provide customers with the opportunity to

complain. complain. Give customers your full and undivided attention. Give customers your full and undivided attention. Listen completely. Listen completely. Ask the key question: "what else?" Ask the key question: "what else?" Agree that a problem exists; never disagree or Agree that a problem exists; never disagree or

argue. argue. Apologize. Apologize. Resolve the complaint. (Ask again: "what else?") Resolve the complaint. (Ask again: "what else?") Thank the customer for bringing the complaint to Thank the customer for bringing the complaint to

your attention. your attention.