Selling and Customer Care Training Pack

8/2/2019 Selling and Customer Care Training Pack

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Author

Sohailuddin ALAVIInternational Trainer Adviser, AIBF

(International Expert in Capacity Building and Institutional Development)

March 2012

Selling andCustomer Service

Training Pack


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2 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

Authors Profile

ALAVI, Sohailuddin

He is a capacity building and institutional development expert. He brings learning through working

internationally for more than 28 years. Through the years he has unleashed skills in document writing,

proposal development, critical thinking and creativity. His career spans over 28 years of learning

In his initial career he has worked in a Pakistani bank as trainer, coordinator and training manager for

management development programs for almost 15 years. Later he established his own institutional

management and training consultancy. As consultant he has had conducted numerous management

training workshops both in Pakistan and Afghanistan. Besides, he has had worked on many institutional

development projects in the corporate, development sector and the Govt. departments, as consultant.

He has taught for more than ten years in the undergraduate and post graduate programs of Shaheed

Zulfikar Ali Bhutto Institute of Science and Technology, Faculty of Management Sciences and KarachiUniversity Business School, Pakistan. He has written extensively in management, leadership, organization-

behavior; business ethics, and entrepreneurial development for professional magazines, authored books

and training manuals.

Personal Contact Details:

Email: [email protected]

Public Profile:http://pk.linkedin.com/pub/alavi-sohailuddin/44/ab4/997

Cell No. 00 92 (0) 333 213 87 42

Karachi, Pakistan
http://pk.linkedin.com/pub/alavi-sohailuddin/44/ab4/997http://pk.linkedin.com/pub/alavi-sohailuddin/44/ab4/997http://pk.linkedin.com/pub/alavi-sohailuddin/44/ab4/997http://pk.linkedin.com/pub/alavi-sohailuddin/44/ab4/997


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Table of Contents

Preface 01

Section One: Sharpening Selling Skills 03

i. Check your Understanding Ice Breaker 04ii. Profile of a Sales Professional 08iii. Three Cs of Selling 10iv. What do Businesses Sell 11v. Sales Discussions 12vi. Overcoming Customer Objection 16vii.

Practicing Sales Discussions 17

Section Two: Customer Service Skills 20

i. Customer Behavior 21ii. Discover Customers 22iii. Profile of a Customer Service Professional 25iv. Where are the Customers 26v. Why Customers are Important 28vi. What Customers Value Most 29vii. What Must We Give to Customers 30viii. How Customers Respond 31ix. Communicating with Customers 33x. Winning Customers Case Study 35xi. Managing Customer Relationships Case Study 36


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Preface

Selling and customer care are truly two pillars of doing business effectively. Customers

provide humongous opportunities to the businesses thus it is imperative that businesses

should strive to give value to their customers in return. Besides, emerging competition

amongst businesses is now global. On one side foreign businesses are directly competing

with local players and on the other side, local businesses can now reach out to their

potential customers outside their conventional boundaries.

In the above scenario, selling solutions and assuring quality customer care are the two

key processes that help businesses develop their competitive advantage. Product quality

is surely important but more important is the quality of sales and customer service

individuals: those who are able to build stronger bonds with their customers, understand

their real needs and expectations, and last but not the least strive honestly to serve

them right come out as winners!

This training pack introduces fundamental concepts and processes of selling and

customer care in addition to building your skills in these critical areas. Learning is

assured through reflective approach used in presenting the subject matter. This allows

the training participants to able to visualize and validate the concepts and processes in

their work context and get ample opportunity to practice the same for maximum

internalization.

I would like to dedicate this training pack to my parents, family, the Afghanistan

Institute of Banking and Finance (Kabul), and the organizations and universities where I

had worked, taught and studied.

Sohailuddin ALAVI

March 2012


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Learn to think

Think to Learn


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Section One

Sharpening Selling Skills

Learning Objectives

The purpose of this section is to sharpen your selling skills and to harness your

potentials enabling you to improve upon your performance both for our personal and

organizational growth

In this section you will learn:

1. What is selling?2. Why selling is important?3. Are you ready to sell?4. What are three Cs of selling?5. What you sell in bank setting?6. What is a better way to sell?


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Check Your Understanding

Activity 1: Define Selling

This activity will help each of us to define selling from a unified perspective. It isimportant to think alike because it will help us focus on one goal and to communicateeffectively during this training session.

You have 10 minutes to complete this activity in your group.

1. What is selling, as you look at it? No one is right or wrong, their definitions aredifferent.__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

2. What is your groups collective view of selling? [You can do this by listening toeach others views on selling and then trying to reach on one definition that is

acceptable to the group.

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

CONGRATULATIONS! Your group has done it. It is about time to select yourrepresentative. He or she should then present your groups views to rest of the class.


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Activity 2: Why Selling is Important?

List down reasons in favor of and against selling in a typical bank setting

Yes selling is important because No selling is not important because


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Activity 3: Are You Ready to Sell?

We all sell in one way or the other. However, because selling has such a poor image,professionals dont like to think of themselves as salespeople.

In this first exercise, we will examine some of the reasons why selling has a bad name.In the space below, please jot down an actual example of bad selling that has made you,as a buyer feel negative about the seller of the product.


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Check Your UnderstandingDebrief

Selling is a process of exchanging benefits using products and services by focusing onour core competencies and in a manner that provides real value to the customers; buildsstronger customer relationships; and, earns profit for the company throughdemonstrating honest, reliable and moral behaviors.

Key Words:i. Exchange of benefitsii. Products and servicesiii. Core competenciesiv. Customer valuev. Customer relationshipvi. Profitvii.Honest, reliable and moral behaviors

Selling is Important:i. Because everyone must sell to succeedii. Because it helps create awareness of our products and servicesiii. Because it helps bring-in new customers and retain existing onesiv. Because it helps promote businessv. Because it is the prime source of profit

Readiness to Sell:

i. Sales people are the bread earners in any businessii. Selling helps me stay in touch with peopleiii. By selling I can solve customers problems

We Sell What Customers Value Most:i. Benefits that our products and services offerii. Solutions to the problems and concern of our customersiii.Value for money

How Best to Sell:i. Candor, Concern and Competenceii. Follow systematic process

a. Build emotional rapportb. Investigate customer needs, expectations and eligibilityc. Demonstrate products and services capacityd. Negotiatee. Be ready to serve the Customers right


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Profile of an Effective Sales Professional

Winning at a career in sales and customer care is no exception. To ensure a win, youmust take a proactive approach. Prevention of failure is an important part of that process.If you find yourself saying, I'm not cut out for sales, I'm not pushy enough, I hate coldcalling, I can't take the rejection, my boss is a jerk, or my boss is a real jerk, you areheading down the wrong path. Here are 19.5 recurring characteristics and traits ofsalespeople who thought they could hit a six in a sales career but who struck out in theirattempt. Many of them stood with their bats on their shoulders, failing to swing at theball as it passed them by . How many of these apply to you?

1. You don't believe in yourselfIf you don't think you can do it, who will?

2. You don't believe in your productFailure to believe your product or service is the best will show. Lack of convictionis evident to a buyer and manifests itself in low sales numbers.

3. Failure to set and achieve goals. Failure to planFailure to define and achieve specific long-term (what you want) and short-term(how you're going to get what you want) goals.

4. You're lazy or just not prepared to make the saleYour self-motivation and preparation are the lifeblood of your outreach. You must

be eager and ready to sell or you won't.

5. Failure to understand how to accept rejectionThey're not rejecting you, they're just rejecting the offer you're making them.

6. Failure to master the total knowledge of your productTotal product knowledge gives you the mental freedom to concentrate on selling.

7. Failure to learn and execute the fundamentals of salesRead, listen to tapes, attend seminars and practice what you've just learned.Everything you need to know about sales has already been written or spoken.

Learn something new every day.

8. Failure to understand the customer and meet his or her needsFailure to question and listen to the prospect and uncover true needs, includingprejudging prospects.

9. Failure to overcome objectionsThis is a complex issue. You are not listening to the prospect; you are notthinking in terms of solution; you are not able to create an atmosphere ofconfidence and trust suitable enough to cause (effect) a sale. People aren't afraidof failure; they just don't know how to get to success.


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10. Can't cope with changePart of sales is change. Change in products, tactics and markets. Roll with it to

succeed. Fight it and fail.

11. Can't follow rulesSalespeople often think rules are made for others. Think they're not for you?Think again. Broken rules will only get you fired.

12. Can't get along with others (co-workers and customers)Sales is never a solo effort. You must team with your co-workers and partnerwith your customers.

13. GreedinessSelling for commissions alone rather than helping customers.

14. Failure to deliver what you promisedFailure to do what you say you're going to do, either for your company or yourcustomer, is a disaster from which you may never recover. If you do it often, theword gets out about you.

15. Failure to establish long-term relationshipsTrying to make commissions leads to failure through insincerity, failure by lack ofservice, failure to be motivated by anything but money.

16. Failure to understand that hard work makes luck

Take a close look at the people you think are lucky. Either they or someone intheir family put in years of hard work to create that luck. You can get just aslucky.

17. Blaming others when the fault (or responsibility) is yoursAccepting responsibility is the fulcrum point of succeeding at anything. Doingsomething about it is the criterion. Execution is the reward (not the money).Money is just the byproduct of perfect execution.

18. Lack of persistenceYou are willing to take no for an answer and just accept it without a fight. You

are unable to motivate the prospect to act or are unwilling to persist through theseven to 10 exposures it takes to make the sale.

19. Failure to establish and maintain a realistic attitudeThe first rule of life.

The 19.5th characteristic that leads to sales failure: BTNA - Big Talk No ActionToo busy bragging about the sales you're going to make and not busy enough makingthem. Failure is not about insecurity. It's about lack of execution. There's no such thingas a total failure. Failure is an event, not a person.


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Three Cs of sellingKey professional selling principles

Candor

Be straight, be honest If you dont know, dont pretend No deceptions, no exaggerations

Concern

Focus on your customers and their needs, not on yourself or yourproducts/services

Understand customer problems and why they matter.

Competence

Know how your product and services meet customer needs Know how they solve customer problems


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What Do Businesses Sell?(Features/Benefits Analysis)

Putting yourself in the shoes of a customer, you will realize that when they buy (pay fora product or service) they look for the value (solution or advantage). Thus it is importantthat we identify long list of benefits our products can offer to our potential customers. Indoing so, we must be able to demonstrate the features as basis for the envisagedbenefits.

In the following activity, you will have a chance to identify the benefits and features ofyour products. You should do this by first looking at the features followed by identifyingthe benefits that each feature would lead to. Remember one feature can offer more thanone benefit and different customers feel attracted to different benefits!

Instructions:1. Select and a few bank services/products that you sell in day in day out.2. Think of (3) features of each service/product then determine customer benefits ofeach feature.

PRODUCTS / SERVICES PRODUCT FEATURES CUSTOMER BENEFITS

1.__________________________.

2.__________________________.

3.__________________________.

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Sales Discussions

Selling involves communicating, persuading and negotiating with customers. Salesdiscussions generally go through four distinct stages. Remember the sequence is critical,but in a continuing customer relationship you may begin from a later stage.

1. OPENING: At the onset it is important to Achieve comfort level between thecustomer and yourself, and also Establish the purpose. So to saywhy is it necessary to engage in this discussion, particularly fromthe customers point of view? Without it you wont succeed todrive the discussion to making sales.

Tips: Give customer your full attention

- Welcome Customer, smile and make an eye contact and shakehands if convenient.- Exchange names, write down customers name and make sure

customer knows your name.- Acknowledge customer visit, make customer feel good about

visiting your bank.

Think of an example from your work:

________________________________________________________________________

________________________________________________________________________

2. INVESTIGATING:Second is to uncover Customers needs and expectations. Need isthe solution or usage value customer demands such as Loancompensates liquidity shortages in business. Expectations are theway solution is delivered such as time taken, convenience offered,and last but not the least service quality.

Situation Qs. Situation questions are asked during the investigating stage - To uncover facts- To establish eligibility- To find more out about the customerThree rules for asking Situation questions:- Establish eligibility early [Dont wait until the end of the

conversation to find that the customer doesnt qualify for theproduct or service s/he want].

- Avoid interrogation [Ask questions in friendly andconversational ways so the customer doesnt feel it is aninterrogation].


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- Offer Alternatives [Dont say no to customer if s/he is noteligible. Whenever possible, look for an alternative product orservice you could offer].

Overcoming Customer Problems / Difficulties [Structured questions can help you uncovercustomer needs problems and difficulties. And to determine how your product orservices could help provide solutions to the problem or resolve difficulties of thecustomers]

Focus on: - Understanding customer needs

- Uncovering customer problems / difficulties- Suggesting solutions / alternates

Remember our customers buy a product only if it solves a problem for them. E.g.

Product / Service Solutions the product could provide to thecustomers

Fixed Interest Deposit

Term Deposit

S/he can reduce uncertainty becauses/he know in advance exactly whatinterest s/he will earn.

S/he can get higher interest than froma savings account without anyadditional risk to Principal.

Tips: Before you start discussion- Get the customer agree to your asking some questions.-

Explain why and how the questions will help the discussion.


________________________________________________________________________

________________________________________________________________________

3. DEMONSTRATINGCAPABILITY: Third stage is about showing that you can meet the customer

needs and expectations. This involves product or service suitability,banks capacity and your personal ability to deliver what yourcustomer needs and expects.


________________________________________________________________________

________________________________________________________________________


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4. NEGOTIATING: You have walked through a long way with your customer, it isabout time to use your negotiating skills and get customers

commitment. Negotiating is a process of giving to the customerwhat s/he values the most and securing from the customer whatyou value the most. Selling on the spot is ideal, but in manyinstances customers gain time before they buy. Getting a firm butsoft commitment from the customer increases your chances ofmaking the sale in the near future.


________________________________________________________________________

________________________________________________________________________

Remember: Like other discussions between people, sales discussions dont fit exactlyinto a neat formula. Although these stages are generally true, there are alwaysexceptions.


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Quiz: Stages of Sales Discussion

Instructions: Read each situation separately and determine the Selling-stage described ineach of the following situations. Encircle the right box:

1. A customer has come to the bank because her 12-month TDR has matured and nowshe wants to put the money into a 3-month TDR. Youve found out that she wants ashort-term investment, since she expects to be making a major purchase anddoesnt want her money tied up. You believe that a Savings-Plus Account would bebetter for this customer - but shes never heard of it - so youre explaining it to her.

Opening InvestigatingDemonstrating

CapabilityObtaining

Commitment

2. Youve been talking to a customer about moving money into a TDR account. Hesinterested and clearly sees some advantages, but he seems hesitant. In response toyour questions he explains that he feels he should discuss with his wife before he movesthe account into your bank.


CapabilityObtaining

Commitment

3. A new customer has just opened a Savings Account with you. Just as shes gettingup to leave she says, By the way, whom should I talk to about getting a car loan?


CapabilityObtaining

Commitment

4. You have just taken a customers loan application. When you mentioned electronicbanking he seemed very interested and now youve developed a clear need, soyoure describing electronic banking in more detail.


CapabilityObtaining

Commitment

5. A customer has come to your desk complaining about the bank bouncing his checks.He says that his checkbook shows a positive balance.


CapabilityObtaining

Commitment


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Overcoming Customer ObjectionsGroup Activity 1

Instructions: - Phrase questions that you should ask to your prospective customers touncover their needs. Then select a product that might resolve customer specificproblems / difficulties.

ILLUSTRATION Overcoming customers problems / difficulties: -

Are you worried that you could lose moneybecause interest rates are fluctuating?

Do you find it difficult to do your bankingonly during regular banking hours?

Fixed interest rate investments could helpsolve this problem.

ATMs. / Credit CardsCould help resolve this difficulty.

Customer: House Wife / Retired Individual

Question Solution

Situation Two: Small Business Person

Question Solution

Situation Three: Corporate Executive

Question Solution


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Practicing Sales DiscussionRole Play Activity

Roles:

One person plays the Customer, one person plays the Seller. Others

observe and comment afterwards.

Customer

Description:

Customer really needs to put money into a high interest bearing account,

and s/he not sure what type of account to open. S/he has only been

banking here for a month, so s/he a little nervous about discussing

his/her finances with a stranger. Instead, s/he has decided to open a

savings account even though s/he knows its not what s/he should be

putting her/his money into.

Instructions:

Indulge your selves in the sales discussion, following typical stages. The

seller [banker] has a task to make the customer have trust on him/her,

uncover facts about the customer needs and difficulties, offer a practical

solution to the customers problem, and negotiate a firm commitment

from the customer.

Others watch carefully and comment at the end, starting with what went

right then what could be have been done even better, and finally what

went wrong.


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Sellers Brief

Instructions: The person playing seller must read through this brief and follow. Itexplains his or her position.

Youve been talking to a customer who wants to open a checking account. At first the

customer seemed nervous, but has clamed down as you moved through the opening

stage. You think that some other products beside a savings account might be more

appropriate, so now youre going to ask permission to ask some questions.

What the Seller (you) already know:

i. Customer wants to open a checking account.ii. Customer recently took a new job located near this branch. That is why our

checking account would be convenient.

Sellers (your) Goal:

Plan the discussion [Questions you should ask]

- To make customer comfortable with you asking questions- To make sure you uncover all the facts listed in the Customer Brief.- To identify the right product / service that solves customer problem.- Negotiate a firm commitment from the customer

Remember, if you ask right questions then the customer would reveal the following facts:

S/he has a checking account and a saving account at a bank near his/her home

S/he has several Certificates of Deposit with this other bank.

S/he has been using this other bank for many years and dont plan to move

his/her accounts unless there is a very clear advantage to doing so.


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Customers Brief

Instructions: The person playing customer must read through this brief and follow. Itexplains his or her position.

What the Seller already knows:

i. You want to open a checking account.ii. You recently took a new job located near this branch. That is why our

checking account would be convenient.

What you might reveal if the Seller asks the appropriate questions. Do not answer unless

the seller asks the right question.

You have a checking account and a saving account at a bank near your home

You have several CDs with this other bank.

Youve been using your present bank for many years and you dont plan to move

your accounts unless there is a very clear advantage to doing so.


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Section Two

Customer Service Skills

Learning Objectives

The scope of this section is to help your increase your competence in customer service.

In this module you will learn:

1. Who is a Customer?2. Why Customer Service is important?3. Customers are Humans just like you and me.4. Are you ready to Serve Customers?5. Where are the Customers?6. What Customers value most?7. What must we give to Customers?8. How Customers respond to our service?9. What to Say and how to Say it?10.How to keep up Good Service11.How good am I at Customer Service?


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Customer Behavior

What is Behavior?

Behavior is a set of mental, emotional, and physical activities that people engage in

when selecting, purchasing, using, and disposing of products and services so as to

satisfy their needs, desires and expectations.

Seven Keys to Customer Behavior

Is instrumental. Includes many activities. Is a process. Varies in timing and complexity. Involves different roles. Is influenced by external factors. Differs for different people.


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Discover Customers

Activity 1: Who is a Customer?

This activity should help each of you to redefine customer from a practical perspective.It is important to think alike because it will help you focus on one goal and tocommunicate effectively during this training session.

You have 10 minutes to complete this activity in your group.

1. Who is customer, as you look at it? No one is right or wrong, their definitions aredifferent.

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

2. What is your groups collective view of customer? [You can do this by listening toeach others views on selling and then trying to reach on one definition that is

acceptable to the group.

____________________________________________________________________________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

CONGRATULATIONS! Your group has done it. It is about time to select yourrepresentative. He or she should then present your groups views to rest of the class.


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Activity 2: Why Customer Service is Important?

List down reasons in favor of and against Customer Service in a typical businesssetting

Yes Customer Service is important because No customer service is not important because


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Activity 3: Are You Ready to Serve Customers?

We all do customer service in one way or other. However, because it has such a poor

image, professionals dont like to think of themselves as customer service persons.

In this first exercise, we will examine some of the reasons why customer service has abad name. In the space below, please jot down an actual example of bad customerservice that made you, as a customer, feel negative about customer service.


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Profile of a Customer Service Professional

A successful Customer Service Professional

Believes in the Customer Knows the job well Does the job well Has helping attitude Considers the job worthy and meaningful Is polite and a good listener Carries a business like personality Believes in surprising customers Always walk an extra mile

Mini Exercise: Think of an example for each of the above quality:

1. __________________________________________________________________2. __________________________________________________________________3. __________________________________________________________________4. __________________________________________________________________5. __________________________________________________________________6. __________________________________________________________________7. __________________________________________________________________8. __________________________________________________________________9. __________________________________________________________________


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Where are the Customers?

In the following activity you are asked to visualize your business as your customers seeit. Please complete this activity in 45 minutes. This style of analysis is often difficult, butcan produce some very good insights to know who the key customers are and what theyvalue?

Instructions:1. You are asked to complete this activity together with your group.2. Follow the rules: First listen to everyone. No voting, everyone must agree. Let one of

yourself work as group coordinator.

The story presented below will provide you some useful hints in defining your business

from your customers view point.

Picture-the-Scene: A tired, scruffy, disheveled executive arrives home from yet anothertrip away on business. His youngest child appears and screams at the stranger beforehim. His dog arrives and bites the ankle of his forgotten intruder.

The Message: Avoid travelling instead use the phone, the fax, the telex, the conferencecall, the electronic mail system and regain your quality of family life.

Message: The context of above story is that the Airliners, Railways, and Telephonecompanies are direct competitors in the communication business, for people use all of

them to communicate.

Please use your creative thinking in answering the following questions:

Products we sell to the customers...________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

Services we provide to the customers...________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

Our core business is...________________________________________________________________________

________________________________________________________________________

________________________________________________________________________


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Our competitors are...________________________________________________________________________

________________________________________________________________________________________________________________________________________________

Our permeable industry is....________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

Our customers are....________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

What our customers value....________________________________________________________________________

________________________________________________________________________

________________________________________________________________________


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Why Customers are Important?

In the following activity you are asked to work out as many reasons as you can tohighlight the significance of Customers in the business.

1. I think customers are important because....

2. Good job done. Now you go to your group and compare your list with other members.Hopefully, you would like to add a few more reasons at this point.

3. Discuss your ideas with rest of the class and make a final list of your ideas.


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What Customers Value Most?

In the following activity you are asked to explore what Customers value most. Please

complete this activity in 20 minutes.

Instructions:1. You are asked to complete this activity together with your group.2. Follow the rules: First listen to everyone. No voting, everyone must agree. Let one of

yourself work as group coordinator.

Enlist in what ways your product or service can benefit your customers?

___________________________________

______________________________________________________________________

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______________________________________________________________________

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Identify features of your product or service that benefit your customers

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Short list the features and their benefits that your customers generally look for [demand].

___________________________________

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______________________________________________________________________

___________________________________

___________________________________

How can it benefit you, if you know what customers value most?

________________________________________________________________________________________________________________________________________________________________________________________________________________________


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What Must We Give to Customers?

This activity is in continuation of the previous activity where you focused on What

Customers Value Most By using your learning in the previous activity you should be able

to list down some important expectations [positions] of your customers and identify the

solution [interest] you should provide to them.

Position

Dont want to exceed my budgets. I should get what I paid for. Dont want to stand in the line for long.1. ________________________________2. ________________________________3. ________________________________4. ________________________________5. ________________________________

Interest

I should get something at affordable price. It should be a good service, always. It should be quick.1. _______________________________2. _______________________________3. _______________________________4. _______________________________5. _______________________________

What principles of Customer Service would you drive from this activity? Choose from the

list below that you think are most practical principles.

Always give what they ask for Always empathize with customers Always offer best product/service Always focus on their interests Always try giving best quality product/service Always respond to their specific needs and exceed their expectations


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How Customer Respond?

In the following activity you will identify at some of the usual RESPONSE-BEHAVIORS ofthe customers to the service they receive.

Please follow the sequence:

1. PLEASE RECALL AN INSTANCE, WHEN SOMEONE, SOMEWHERE, HADSERVED YOU LIKE NO ONE HAD EVER DONE BEFORE.

How you felt about the person and the service you received?

100 75 50 25 00

How did you feel about the person and the service same second time?

100 75 50 25 00

How did you feel about the person and the service later?

100 75 50 25 00

SCALE: 100 - 76 Delighted; 75 - 51 Satisfied; 50 - 26 Indifferent; 25 - 00 Id never come again

2. DRAW YOUR PERSONAL PATTERN OF HOW YOU FELT...

Please encircle (X) that represents your score above.

Delighted Satisfied Indifferent Id Never comeagain

First Time.

Second Time.

Later Times.

3. MAKE A CONCLUSION...

__________________________________________________________________

__________________________________________________________________

X X X X

X X X X

X X X X


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Tips for Keeping Customers Happy

DO IT NOW...DO IT AGAIN...DO IT ALWAYS...

MAKE EVERY CUSTOMER FEEL THAT SHE/HE IS VERY IMPORTANT PERSON FOR YOUBY:

ALWAYSGREETINGEVERYCUSTOMERWITHASIMILE ASKING TOEVERYCUSTOMERHOWCANYOUHELPTHEM; SHOWINGINTERESTINEVERYCUSTOMERSPROBLEMS; LISTENINGTOEVERYCUSTOMERWITHATTENTION; CORRECTLYANSWERINGTOTHEIRQUESTIONS; TRYINGYOURBESTTOSATISFYEVERYCUSTOMER; COOPERATINGNOTCOMPETINGWITHYOURCUSTOMERS; LIVINGUPTOEVERYCUSTOMERSEXPECTATIONS; STANDINGBYYOURPROMISESYOUMAKETOEVERYCUSTOMER.THOUGHITISDIFFICULTBUTWITHANEFFORTANDCONSTANTLEARNINGYOUCANSUSTAINYOURCUSTOMERSRESPONSETOYOURADVANTAGE.


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Communicating with CustomersWhat you say and how you say it can have a tremendous effect on your Customers

Did you know this?It's a fact that the average human being has 135 different needs! If you were asked tocomplete a list of those needs you would probably come up with between 12 and 20.That means there would be about 115 needs you couldn't identify!

So, what is a need?A need is an unsatisfied desire, eating away at the inside of your customer, wantingfulfillment.

When their needs are not being met, they will find somewhere else to buy. That's whyit's paramount to treat their many needs with respect, dignity and promptness - We all

will always go back to a place where somebody makes us feel good.

So, our mission should be: Make customers feel good Create a phenomenal database of customers Offer an exceptional referral system Understand that needs satisfaction is vital to all business success.Behaviorists tell us that the #1 strongest of all human needs is the need for recognition.The need to know that we occupy a valuable space on the face of the earth is real. Weneed to know we are valuable, worthwhile human beings.

When we make people feel of value, they bond to us, automatically. Lets use the term"Stroking" for making people feel of value. Strokes are units of recognition.

Different sorts of "strokes" you can deliver to your customers are:

1. Ritual strokes"Good morning", "Good seeing you".

2. Mail strokesCards, memos, thank you notes that make people feel very, very special.

3. Phone strokesPeople appreciate the fact that you are concerned enough to give them a call,particularly when it is not business related.

4. Time strokesGiving customers time and listening to them gives them a great feeling of self-worth.5. Talk strokesMaybe we should rename this LISTENING strokes. Listening is the highestcompliment you can pay to a person.


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6. Touch strokesShaking hands will always make the customer feel welcome.

7. Positive strokesThis is the warm feeling generated from one person to another when you saysomething nice:

"Its really nice to see you again".

"Your choice is our first priority".

And, always remember, exceptional human beings never devalue others - not even injest! Lastly, and most importantly, don't discount someone when they give you a stroke.Practice just saying, "Thank you very much, I appreciate it!" It will make the both of youfeel better.


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Winning CustomersMini Case Study

FACTS:Your branch has an annual turnover of AFS.100.0 Million, with its customer-base of 4000

individual and corporate customers. Most of the customers have been with the branch

for more than 5 years. Of late, however, the branch is experiencing loss of its customers

to its competitor down the road, at an average of 20% annually.

To cope up with the situation, the management had initially established Marketing

Group with the sole purpose of bringing in new customers to replace the lost ones. The

group has been given annual budget of AFS.500,000/- for the task. However, the

management is fully committed to stop further drain of its customers.

TASK:

1. Calculate the potential loss of revenue to the branch when it losses a customer.2. Estimate average cost of replacing every lost customer.3. Determine how much a dissatisfied-customer will cost to the branch.4. Tabulate total loss to the branch due to annual loss of customers.INSTRUCTIONS:

You are a select member of the task force, especially created to stop further loss of

worthy customers to the competitor, hence maintain branchs profitability at an average.

In the subsequent meeting, you are invited to make a presentation on the following

aspects of the problem:

What could be done to stop customers from moving to the competitors business? How could customers loyalty be improved upon? How best could customers be served?


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Managing Customer Relationship

Case Study

You are pretty concerned to boost your branchs profitability, for now your careerprospects are directly linked with your branchs profit performance. Above all, personssitting in the Business Planning and Development Division have recently observed thatfocusing upon the overall branch operations does not provide valuable insights formanaging profits in todays TRICKy environment. Now, therefore, branches need tomanage individual customer relationships against a target Return-on-equity. A formathas been specifically developed to aid the branches to periodically conduct analysis ofcustomer relationship and determine whether each customer-relationship is yieldingtarget return-on-equity or not. And based on such analyses, generate data formanagerial action.

Managing Return-on-equity now-a-days require managing Customer-relationships, for itis the customers on whom we depend for our profits (R.O.E.). This exercise is aboutevaluating customers relationship to find out if it is profitable or not.

Data: M/s. Colors of Beneton, a garment store, have been maintaining their relationshipwith your branch ever since they were established in 1993. On the whole the relationshipis mutually beneficial.

Monthly Average Account Balances:- Checking Account (Current) Rs. 200.000,00- Checking Account (Savings) Rs. 100.000,00

- Term Account Rs. 500.000,00- Over Draft Facility (O/S). Rs. 100.000,00- L/C. Margins. Rs. 150.000,00- Five Years Term Loan. Rs. 1000.000,00

Other Transactions:- Remittance Business. Rs. 5.000,00- L/C. Trans. Rs. 1.000.000,00- Others. Rs. 3.000,00

Interest / Markup Rates:- Checking Account (Savings) 7.00 % P.A.

- Term Account 12.00 % P.A.- Over Draft Facility (O/S) 18.00 % P.A.- Term Loan. 20.00 % P.A.

Other Charges:- Remittance. 5.00 %- L/C. Trans. 3.00 %- Commitment Fee. 2.00 %

Misc. Information:- Bank Equity 08.00 %- Target Return On Bank Equity 20.00 %


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Assignment:1. The approach is definitely different, but with little efforts you can master it to

your advantage.

2.You are asked to carefully read the information given above and the annexedCPA-Format.

3. Compete the format with the help of information given above.4. Do the Customer Profitability Analysis.5. Give your options to improve profitability by modifying the customer

relationship.6. Look for encouraging forces and try circumventing the usual constraints on

your actions.7. You will be able to complete this whole exercise in less than 45 minutes.


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Customer Relationship Profitability Analysis(Template)

Sources and Uses of Funds...

1. Average Loan / Finance Balances:

____________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ __________ __________

2. Average Deposit Balances:

____________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ __________Less Reserve Requirements @ XX % __________

Total Loanable Funds.(Total of 1 Minus Total of 2)_____________

3. Banks Funds Used by Customer:

- Total Average Loan Balance. __________- Less Total Loanable Funds. __________- Gross Bank Funds Used. __________- Allocated Bank Equity. __________( XX % of GBFU)- Funds Transferred from Pool. __________( GBFU - ABE)

Income and Expense Analysis...

1. Income Earned:

a) Gross Interest / Markup Income on Loans __________

b) Earnings on Deposits (XX % of TLF.) __________

c)Fee Charged;__________________________________ ____________________________________________ ____________________________________________ __________

Total Income (a+b+c) __________


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Page 2

2. Gross Expenses:

a) Profit / Interest Accrued on Customer Deposits- Time Deposit (XX %) __________- Checking Account(s) (XX %) __________ __________

b) Cost of Bank Funds Used- Allocated Bank Equity (XX %) __________- Pool Funds Used (XX %) __________ __________

c) Allocated Branch Overhead __________(XX % of Total Branch Overheads)

Total Expense (a+b+c) __________

3. Net Return

a) Total Income __________

b) Total Expenses __________ __________

4. Profitability Analysis

Return-on-Equity (Also Referred to as Allocated Capital Index):

Net Income / Allocated Bank Equity: __________ / __________ = _____%

Documents

Selling and Customer Care Training Pack