Service And Follow Up For Customer Retention

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Service And Follow Up For Customer Retention

  1. 2. Service and Follow-up for Customer Retention Chapter 13
  2. 3. Chapter 13
  3. 4. Main Topics <ul><li>The Business Tree of Life: Service </li></ul><ul><li>The Importance of Service and Follow-Up </li></ul><ul><li>Building a Long-Term Business Friendship </li></ul><ul><li>Relationship Marketing and Customer Retention </li></ul><ul><li>The Product and Its Service Component </li></ul><ul><li>Customer Satisfaction and Retention </li></ul>13 Chapter
  4. 5. Main Topics 13 <ul><li>Excellent Customer Service and Satisfaction Require Technology </li></ul><ul><li>So, How Does Service Increase Your Sales? </li></ul><ul><li>Turn Follow-up and Service into a Sale </li></ul><ul><li>Account Penetration Is a Secret to Success </li></ul><ul><li>Service Can Keep Your Customers </li></ul><ul><li>You Lose a Customer—Keep on Trucking </li></ul>Chapter
  5. 6. Main Topics 13 Chapter <ul><li>Returned Goods Make You a Hero </li></ul><ul><li>Handle Complaints Fairly </li></ul><ul><li>Is the Customer Always Right? </li></ul><ul><li>Build a Professional Reputation </li></ul><ul><li>Dos and Don’ts for Business Salespeople </li></ul><ul><li>The Path to Sales Success: Seek, Knock, Ask, Serve </li></ul>
  6. 7. The Tree of Business Life: Service <ul><li>Guided by The Golden Rule : </li></ul><ul><ul><li>Prove you truly care with royal service </li></ul></ul><ul><ul><li>Prove what you said in your presentation was the truth </li></ul></ul><ul><ul><li>Take your time to build long-term business friendships </li></ul></ul><ul><ul><li>Realize that customer satisfaction leads to customer retention </li></ul></ul><ul><ul><li>Place the customer’s interest before your own </li></ul></ul><ul><ul><li>You can see that ethical service builds true relationships </li></ul></ul>I T C Ethical Service Builds T r u e Relationships T T T T T T T T T T T
  7. 8. Exhibit 13-1: Only Through Truth Can Trust Be Supported to Bridge the Gap Between People
  8. 9. The Importance of Service and Follow-Up <ul><li>How does this chapter refer to service? </li></ul><ul><ul><li>As part of a product, such as insurance or advertising? </li></ul></ul><ul><ul><li>In the context of helping others? </li></ul></ul>
  9. 10. Correct! Service Refers To: <ul><li>Helping others </li></ul>
  10. 11. What Is the Difference between Service and Follow-Up? <ul><li>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 </li></ul>
  11. 12. Words of Sales Wisdom and Sales Proverbs <ul><li>Sales Proverbs! Examples are: </li></ul><ul><ul><li>You do business with the one you trust and you trust the one you know </li></ul></ul><ul><ul><li>Obtaining new customers and selling more products to present customers are the ways to increase sales </li></ul></ul><ul><ul><li>It is always easier to sell a satisfied customer than to an unsatisfied one or a prospect </li></ul></ul><ul><ul><li>The cost of acquiring a new customer is higher than keeping a present customer </li></ul></ul>
  12. 13. What Do These Sales Proverbs Mean to a Salesperson <ul><li>Take excellent care of your current customers </li></ul>
  13. 14. When Does the Business Relationship Begin? <ul><li>After you first sell someone and they become a customer </li></ul>
  14. 15. Which of the Following Is the Purpose of the Sales Call? Is it: <ul><li>Solely to make a sale? </li></ul><ul><li>To help someone? </li></ul>
  15. 16. Now You Have it! The Purpose Is to: <ul><li>Help someone by: </li></ul><ul><ul><li>Solving a problem </li></ul></ul><ul><ul><li>Fulfilling a need </li></ul></ul>
  16. 17. Is Being More Concerned For Helping Someone than Making the Sale Hard for Most People? <ul><li>Yes it is! </li></ul><ul><li>Motivation needs to come from the heart, not from the bank account </li></ul>
  17. 18. Exhibit 13-2: If Customers are Truly Important, Their Needs Come First
  18. 19. Putting the Customer First Requires Salespeople to Have Personal Characteristics That Allow Them to: <ul><li>Care for the customer </li></ul><ul><li>Take joy in their work </li></ul><ul><li>Find harmony in the sales relationship </li></ul><ul><li>Have patience in closing the sale </li></ul><ul><li>Be kind to all people </li></ul><ul><li>Have high moral ethics </li></ul><ul><li>Be faithful to their word </li></ul><ul><li>Be fair in the sale </li></ul><ul><li>Be self-controlled in emotions </li></ul>
  19. 20. How Would You Answer these Questions: <ul><li>Do these success characteristics describe you? </li></ul><ul><li>Do you have all, or part of them? </li></ul><ul><li>Can you develop the missing ones? </li></ul>
  20. 21. Once Again, Are You: <ul><li>Caring? </li></ul><ul><li>Joyful? </li></ul><ul><li>Able to get along with others? </li></ul><ul><li>Patient? </li></ul><ul><li>Kind? </li></ul><ul><li>Ethical? </li></ul><ul><li>Honest? </li></ul><ul><li>Fair? </li></ul><ul><li>Self-controlled? </li></ul>
  21. 22. These Personal Characteristics Are Important if You Want to: <ul><li>Have personal friends </li></ul><ul><li>Have business relationships </li></ul>
  22. 23. Building a Long-Term Business Friendship <ul><li>What Is A Business Relationship? </li></ul><ul><ul><li>A relationship revolving around business issues </li></ul></ul><ul><ul><li>A business relationship is much like a personal friendship </li></ul></ul>
  23. 24. The Three Levels of Friends <ul><li>Level 1 – Acquaintance </li></ul><ul><li>Level 2 – Friend </li></ul><ul><li>Level 3 – Intimate Friend </li></ul>
  24. 25. Exhibit 13-3: Trust and Wisdom in a Relationship Grow Over Time Acquaintance High Low Trust High Low Wisdom Friend Intimate Friend
  25. 26. To Move up in Levels of Friendship Requires: <ul><li>T-I-M-E </li></ul><ul><li>Truly caring for other people </li></ul><ul><li>Placing their interests before yours </li></ul>
  26. 27. Relationship Marketing and Customer Retention <ul><li>Transaction selling – sells once </li></ul><ul><li>Relationship selling – periodically stays in touch </li></ul><ul><li>Partnering – continually works with customers </li></ul>
  27. 28. How Does Relationship Marketing Build Friendships? <ul><li>Creates customer loyalty </li></ul><ul><li>Results in retention </li></ul>
  28. 29. The Product and Its Service Component <ul><li>Customer service </li></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Place </li></ul></ul><ul><li>Promotion </li></ul><ul><li>Exchange transaction </li></ul><ul><li>After the sale </li></ul><ul><li>Expectations determine service quality </li></ul>
  29. 30. People Buy the Product Plus What? <ul><li>Plus the services </li></ul><ul><li>A product is a bundle of tangible and intangible attributes, including package, color, and brand, plus the services and even the reputation of the seller </li></ul>
  30. 31. People Buy the Product Plus What? <ul><li>Plus the services (other attributes of the product) </li></ul><ul><li>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 </li></ul>
  31. 32. Here Are Several Expected Services <ul><li>Product has no defects </li></ul><ul><li>Price is fair </li></ul><ul><li>Product is available when and where needed </li></ul><ul><li>Correct, honest advertising </li></ul><ul><li>Transaction handled correctly, quickly, professionally </li></ul><ul><li>Warranty honored </li></ul>
  32. 33. In a Business Friendship, How Can You: <ul><li>Mistreat a person you consider a friend? </li></ul><ul><li>Be uncaring, sad, pushy, impatient, rude, unethical, untruthful, self-centered, and/or emotional? </li></ul>
  33. 34. Customer Satisfaction and Retention <ul><li>Customer satisfaction </li></ul><ul><li>Feelings towards purchase </li></ul><ul><li>Customer retention – if satisfied, they will buy again </li></ul>
  34. 35. Exhibit 13-4: Customer Retention Occurs When the Buyer is Satisfied with Purchases Over Time
  35. 36. Excellent Customer Service and Satisfaction Require Technology <ul><li>Technology and automation is often required to provide excellent service </li></ul>
  36. 37. So, How Does Service Increase Your Sales? <ul><li>Service increases sales by helping you obtain new customers and sell more to present customers </li></ul><ul><li>Satisfied customers will provide customer referrals </li></ul><ul><li>Referrals are very important for: </li></ul><ul><ul><li>Future sales </li></ul></ul><ul><ul><li>More referrals </li></ul></ul>
  37. 38. Exhibit 13-5: Sales Come From Present and New Customers <ul><li>Salespeople are constantly involved in follow-up and service in addition to planning future sales calls to customers; they also spend time prospecting </li></ul>
  38. 39. The Circular Relationship in Managing a Sales Call
  39. 40. Turn Follow-up and Service Into a Sale <ul><li>Convert follow-up and service situations into sales </li></ul><ul><li>Follow-up and service help satisfy the needs of customers </li></ul>
  40. 41. Account Penetration is a Secret to Success <ul><li>Account penetration </li></ul><ul><li>Determined by: </li></ul><ul><ul><li>Total and major-brand sales growth in an account </li></ul></ul><ul><ul><li>Distribution of the number of products in a product line </li></ul></ul><ul><ul><li>Level of cooperation obtained </li></ul></ul><ul><ul><li>Your reputation as the authority on your type of merchandise for the buyer </li></ul></ul>
  41. 42. Service Can Keep Your Customers <ul><li>Concentrate on improving your account penetration </li></ul><ul><li>Contact new accounts frequently on a regular schedule </li></ul><ul><li>Handle customer’s complaints promptly </li></ul><ul><li>Always do what you say you will do </li></ul><ul><li>Provide service as you would to royalty </li></ul><ul><li>Show your appreciation </li></ul>
  42. 43. You Lose a Customer–Keep on Trucking <ul><li>To win back a customer: </li></ul><ul><ul><li>Visit and investigate </li></ul></ul><ul><ul><li>Be professional </li></ul></ul><ul><ul><li>Don’t be unfriendly </li></ul></ul><ul><ul><li>Keep calling </li></ul></ul>
  43. 44. Increasing Your Customer’s Sales <ul><li>Develop a customer benefit program </li></ul><ul><ul><li>Have present customers buy more of a product than they currently use </li></ul></ul><ul><ul><li>Have present customers buy the same products to use for different purposes </li></ul></ul>
  44. 45. Increasing Your Customer’s Sales, cont… <ul><li>To increase sales with a customer: </li></ul><ul><ul><li>Develop an account penetration program </li></ul></ul><ul><ul><li>Examine your distribution </li></ul></ul><ul><ul><li>Keep merchandise in the warehouse and on the shelf </li></ul></ul><ul><ul><li>Fight for shelf space and shelf positioning </li></ul></ul><ul><ul><li>Assist the product’s users </li></ul></ul><ul><ul><li>Assist the reseller's salespeople </li></ul></ul><ul><ul><li>Demonstrate your willingness to help </li></ul></ul><ul><ul><li>Obtain customer support </li></ul></ul>
  45. 46. Returned Goods Make You a Hero <ul><li>Cheerfully return merchandise following the company’s returned goods policies </li></ul><ul><li>It is in your best interest to return faulty merchandise </li></ul>
  46. 47. Handle Complaints Fairly <ul><li>Customers may be dissatisfied with products for any number of reasons </li></ul><ul><li>“The customer is always right” </li></ul><ul><li>Occasionally a dishonest customer may require you and your company not to honor a request </li></ul><ul><li>Customers should get the benefit of the doubt </li></ul><ul><li>Take care of your customers </li></ul>
  47. 48. Is the Customer Always Right? <ul><li>“Always” is the key word in the phrase </li></ul>
  48. 49. The Author of Your Textbook Feels the Customer is Not Always Right <ul><li>Is he correct? </li></ul>
  49. 50. How Does One Know What is Right or Wrong in a Business Setting? <ul><li>What can you use to make a morally ethical decision when dealing with a customer? </li></ul><ul><ul><li>Company guidelines </li></ul></ul><ul><ul><li>Legal laws </li></ul></ul><ul><ul><li>What the boss says </li></ul></ul><ul><ul><li>What else? </li></ul></ul>
  50. 51. Dress in Your Armor <ul><li>You need to be prepared to meet a few unethical and dishonest people </li></ul><ul><ul><li>They may ask you to do something unethical and/or dishonest </li></ul></ul>
  51. 52. What is Meant by “Dress in Your Armor”? <ul><li>Armor is something that will protect you, but from what? </li></ul><ul><ul><li>You need protection from a person who is unethical and/or dishonest with you, such as: </li></ul></ul><ul><ul><ul><li>A customer or prospect </li></ul></ul></ul><ul><ul><ul><li>A competitor </li></ul></ul></ul><ul><ul><ul><li>A co-worker </li></ul></ul></ul><ul><ul><ul><li>Your boss </li></ul></ul></ul>
  52. 53. Your Armor Consists of: <ul><li>Speaking the truth </li></ul><ul><li>Doing what is right </li></ul><ul><li>Readiness to discuss what is ethical </li></ul><ul><li>Trusting you know what is right, honest, and ethical </li></ul>
  53. 54. Build a Professional Reputation <ul><li>Be truthful and follow through on what you tell the customer </li></ul><ul><li>Maintain an intimate knowledge of your firm, its products, and your industry </li></ul><ul><li>Speak well of others </li></ul><ul><li>Keep customer information confidential </li></ul>
  54. 55. Build a Professional Reputation, cont… <ul><li>Never take advantage of a customer by using unfair, high-pressure techniques </li></ul><ul><li>Be active in community affairs – make your community a better place </li></ul><ul><li>Think of yourself as a professional and always act accordingly </li></ul><ul><li>Provide service “above and beyond the call of duty” </li></ul>
  55. 56. Exhibit 13-9: A Super Sales Success Secret
  56. 57. Do’s and Don’ts for Business Salespeople <ul><li>A survey of purchasing agents showed the most important traits that purchasing agents found in their top business sales people: </li></ul><ul><ul><li>Willingness to go to bat for the buyer </li></ul></ul><ul><ul><li>Thoroughness and follow-through </li></ul></ul><ul><ul><li>Knowledge of the firm’s product line </li></ul></ul><ul><ul><li>Market knowledge and willingness to “keep the buyer posted” </li></ul></ul><ul><ul><li>Imagination in applying their products to the buyer’s needs </li></ul></ul><ul><ul><li>Knowledge of the buyer’s product line </li></ul></ul><ul><ul><li>Preparation for sales calls </li></ul></ul><ul><ul><li>Regularity of sales calls </li></ul></ul><ul><ul><li>Diplomacy in dealing with operating departments </li></ul></ul><ul><ul><li>Technical knowledge of specifications and applications </li></ul></ul>
  57. 58. Do’s and Don’ts for Business Salespeople, cont… <ul><li>Seven deadly sins of business selling </li></ul><ul><li>B. J. Hughes’ checklists of do’s and don’ts </li></ul>
  58. 59. The Path to Sales Success: Seek, Knock, Ask, Serve <ul><li>Seek customers to serve and you will find them </li></ul><ul><li>Knock and people will open their doors </li></ul><ul><li>Ask and people will buy </li></ul><ul><li>Provide service after the sale and customers will buy again </li></ul><ul><li>Selling requires the three F’s </li></ul><ul><ul><li>Faith </li></ul></ul><ul><ul><li>Focus </li></ul></ul><ul><ul><li>Follow-through </li></ul></ul>
  59. 60. Exhibit 13-10: The Seven Deadly Sins of Business Selling
  60. 61. Exhibit 13-11: B.J. Hughes’ Checklist of Do’s and Don’ts Help It to Be a Customer-Oriented Company
  61. 62. Summary of Major Selling Issues <ul><li>Salespeople increase sales by obtaining new customers and selling more to present customers </li></ul><ul><li>Customer referrals are the best way to find new prospects </li></ul><ul><li>By building a relationship and partnership, you can provide a high level of customer service </li></ul><ul><li>Customers expect service </li></ul><ul><li>To serve customers best, improve account penetration </li></ul>
  62. 63. Summary of Major Selling Issues, cont… <ul><li>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 </li></ul><ul><li>Today’s professional salesperson is oriented toward service </li></ul>

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