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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

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Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Chapter

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Main TopicsMain TopicsMain TopicsMain Topics

The Business Tree of Life: ServiceThe Importance of Service and Follow-UpBuilding a Long-Term Business Friendship

Relationship Marketing and Customer RetentionThe Product and Its Service Component

Customer Satisfaction and Retention

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Main TopicsMain TopicsMain TopicsMain Topics

Chapter

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Excellent Customer Service and Satisfaction Require Technology

So, How Does Service Increase Your Sales?Turn Follow-up and Service into a Sale

Account Penetration Is a Secret to SuccessService Can Keep Your Customers

You Lose a Customer—Keep on Trucking

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Main TopicsMain TopicsMain TopicsMain Topics

Chapter

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14

Increasing your Customer’s SalesReturned Goods Make You a Hero

Handle Complaints FairlyIs the Customer Always Right?Build a Professional Reputation

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Words of Sales Wisdom and Proverbs

Sales Proverbs! Examples are:You do business with the one you trust and you

trust the one you knowObtaining new customers and selling more

products to present customers are the ways to increase sales

It is always easier to sell a satisfied customer than to an unsatisfied one or a prospect

The cost of acquiring a new customer is more costly than keeping a present customer

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Service–What Is It?

Which of the following is the meaning of customer service as discussed in the “Service and Follow-Up for Customer Retention” chapter?1. Service is part of a product, such as insurance

or advertising?

Or

2. Service makes a contribution to others?

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Correct! Service Refers To:

Making a contribution to others such as our customers

In Chapter 1 we defined “service” as part of a product, such as insurance or advertising. Most of the text refers to service in the context of helping others, and that is the emphasis of this chapter

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What Is the Difference between Service and Follow-Up?

Follow-up refers to maintaining contact with a customer in order to evaluate the effectiveness of the product and the satisfaction of the customer

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What Is A Business Relationship?

A relationship revolving around business issues

A business relationship much like a personal friendshipTrust and wisdom in a relationship (personal or

business) grow over time.Years may pass before an intimate friendship

develops between buyer and seller.

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Exhibit 14-3: Trust and Wisdom in a Relationship Grow Over Time

Acqua

intan

ce

High

Low

Tru

st

HighLow Wisdom

Friend

Intim

ate

Friend

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The Product and Its Service Component

Customer service – refers to the activities and programs the seller provides to make the relationship satisfying for the customer. Here are some customer expected services: Product – the product purchased has no defects Price – fair value for the price Place – the product is available when, where and as promised Promotion – correct, honest information in advertisements, from sales

people and on product labels Exchange Transaction – handled correctly, quickly and professionally

the first time After the Sale – warranty honored, repairs/exchanges made cheerfully;

good product assembly and usage instructions Expectations determine service quality

The customer’s expectations being met determine the level of satisfaction

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People Buy the Product Plus What?

A product is a bundle of tangible and intangible attributes, including packaging, color,and brand, plus the services and even the reputation of the seller.

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So What Would Be Meant by the Term “Product Plus?”*

The product is a good or service “Plus” refers to the other attributes of the

product as described in the definition

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“Plus” Also Refers to Such Things As:

Product has no defects Price is fair Product is available when needed Correct, honest advertising Warranty honored

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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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Customer Satisfaction and Retention

Customer satisfaction; refers to:Feelings towards purchase

Customer retention – if satisfied, they will buy again

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Exhibit 14-4: Customer Retention: When the Buyer is Satisfied with Purchases Over Time

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So, How Does Service Increase Your Sales?

You increase sales by obtaining new customers and selling more to present customers

Satisfied customers will provide customer referrals – W.O.M. is critical

Thus very important to service forFuture salesReferrals

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Exhibit 14-5: Sales Come From Present and New Customers

Salespeople are constantly involved in follow-up and service in addition to planning their next sales call on the customer; they also spend time prospecting

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Turn Follow-up and Service Into a Sale

Convert follow-up and service situations into repeat or new sales

Follow-up and service help satisfy the needs of customers

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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 Ex: if one department/division is buying my office supplies,

can I “penetrate” other department/divisions also buy? The greater you penetrate, the greater you chances of

maximizing sales within the account

Determined by: Total and major-brand sales growth in an account Distribution of the number of products in a product line Level of cooperation obtained Your reputation as the authority on your type of

merchandise for the buyer

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Service Can Help You Keep Your Customers – How?

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

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You Lose a Customer–Keep on Trucking

To win back a customer:Visit and investigateBe professionalDon’t be unfriendlyKeep calling

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Increasing Your Customer’s Sales

Develop a customer benefit programHave present customers buy more of a product

than they currently useHave 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 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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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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Is the Customer Always Right?

“Always” is the key word in the phrase

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The Author of Your Textbook Feels The Customer is Not Always Right

Is he correct?

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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 peopleThey 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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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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Exhibit 14-10: The Seven Deadly Sins of Business Selling

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Summary of Major Selling Issues

Salespeople increase sales by obtaining new customers and selling more product 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 get the best use from products you have sold them or to increase the resale of these products

Today’s professional salesperson is oriented toward service