Service Sells 2012


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Workshop that focuses on developing sales communication skills for service and support professionals to generate additional business opportunities

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  • Copyright DPS 2004
  • Copyright DPS 2004
  • Customer service can make a difference in establishing customer loyalty. Copyright DPS 2004
  • These are the key questions that will help determine if what your company is offering and what your employees are doing are helping to create customer loyalty. Copyright DPS 2004
  • This is the “operational” or “functional” definition of customer loyalty. Copyright DPS 2004
  • As more loyalty customers are created there are other benefit that can impact your organization. Copyright DPS 2004
  • When surveyed and the information is “distilled” customers expect the following. Copyright DPS 2004
  • This diagram illustrates that many customers are neither highly satisfied or highly dissatisfied but somewhere in between. This is referred as the zone of indifference. These customers don’t have a high degree of loyalty, they are subject to next best deal that might be out there. Understanding how to move the right customers to the high degree of satisfaction which leads to customer loyalty is the key. Copyright DPS 2004
  • This describes what a formal sales process entails and many times is the perception that techs have of sales. Copyright DPS 2004
  • This points out what is true today with how people buy. Research proves these to be true. Copyright DPS 2004
  • This is the environment that our technicians are usually going into. If approached correctly many service calls will result in sales opportunities. Every situation will not result in a sale but the conditions will exist for the technician to make a recommendation. Copyright DPS 2004
  • When things go wrong and terribly wrong and a a root cause analysis is done a breakdown in one of these areas take place. So a good sales training program should start with all employees that handle a customer transaction. Copyright DPS 2004
  • This explains what the technician should do especially when first approaching and interacting with the customer. This first 60 seconds of interacting with the customer can make or break how the rest of the call will go. Copyright DPS 2004
  • Here is the process that should be used on every call that will create the best environment or situation for the technician to make a positive recommendation to the customer that they will accept. Copyright DPS 2004
  • This explains the difference between understanding how a customer feels vs. having sympathy for the customer. Having sympathy entails agreeing with the customer and sharing the same emotion which can intensify the emotion the customer is feeling. The idea is to minimize or dis-fuse the emotion so that the facts of the situation or problem can be dealt with in a rational and efficient manner. Copyright DPS 2004
  • For existing employees the one pivotal skill that can have the greatest impact on communication between employees and customers is listening skills. This will ultimately lead to the emotional connection between customers and your company.. Copyright DPS 2004
  • Here is what is meant by active listening. It is a skill that can be taught. Copyright DPS 2004
  • Follow established procedures for completing the repair. Know ahead of time from your records or through observation or discussion with the customer what you can offer. Continuous product training and updates from manufactures, suppliers and other resources. Copyright DPS 2004
  • This is the process that technicians should use to make recommendations to customers. If the technicians are able to engage the customer in a conversation during or as they complete the repair the transition to the recommendation will be easier and more natural. This is not always possible due to the nature of the repair or the fact the customer may be somewhere else. Once the repair is complete explaining what was done, showing the customer that the product is working properly and answering any questions creates a conversation that can lead the making the recommendation. We are talking about an additional two to three minutes at the end of the call…not adding a lot of additional time to the call. Copyright DPS 2004
  • Keys to service recovery. When properly executed service recovery can move a customer from the zone of indifference or potential dissatisfaction to a high degree of satisfaction and loyalty. This process should be well defined for your business and all employees should be trained in the process and steps outlined on the next two slides. Copyright DPS 2004
  • Service Sells 2012

    1. 1. Direct Professional Services “Service Sells”Increasing Sales Through Developing Customer Loyalty David P. Scurlock copyright 2011
    2. 2. D.P.S. Inc. David P. Scurlock 25 plus years of experience in sales/service related industries. *Corporate business units, independent dealers, field based operations, industry associations. *Business to business and business to consumer sales and customers interactions. Industries include office products/automation, graphic arts, water treatment, in home service providers, supply chain and delivery operations.
    3. 3. D.P.S. Inc. David P. Scurlock  Sales success was directly related to service experience customer had. Service experience was key in developing continuing business relationships. (additional products/services or references.  Extensive experience in Learning and Organizational Development. – Sales and Product Training – Supervisory, Management, Leadership Development – Internationally recognized certifications
    4. 4. Why is a focus on serviceD.P.S. Inc. support important? Market Pressures  Products are homogenous  Technology is leveling the playing field  Lots of information available  Customer service is the difference and a link to loyalty.
    5. 5. Why is a focus on serviceD.P.S. Inc. support important? Market Pressures  Customers are expecting faster resolution times.  Shrinking product-based profit margins are spurring the need for service-based revenue growth.  Customer service has become a competitive trump card.
    6. 6. U.S. Office of ConsumerD.P.S. Inc. Affairs Findings – The Business Metrics  For every unsatisfied customer who complains, 26 other unhappy customers say nothing. And of those 26, 24 won’t come back!  Each customer that experiences a problem will tell 9 or 10 people about it. – Social media has increased the impact of this!
    7. 7. U.S. Office of ConsumerD.P.S. Inc. Affairs Findings - The Business Metrics  Of the customers who register a complaint, between 54 and 70 percent will do business again with the organization if their complaints are resolved. That figure goes up to a staggering 95 percent if customers feel that complaints are resolved quickly! Service personal/technicians are on the front line to address these opportunities.
    8. 8. D.P.S. Inc. Focus on Customer Loyalty  Customer satisfaction alone won’t do!  Customer satisfaction does not equal customer loyalty!
    9. 9. The Loyalty Effect*D.P.S. Inc. Central gauge that integrates all dimensions of business and measures how well company is creating value for it’s customers. * Fred Recheld The Ultimate Question
    10. 10. D.P.S. Inc. True Customer Loyalty  Customer Loyalty measures the emotional attachment that a customer has with your product/service/organization. That attachment is created through relationships developed by your employees.
    11. 11. D.P.S. Inc. True Customer Loyalty  Competitive Advantage  Employee Morale  Unexpected gains in – Productivity – Growth – Reduced cost – Profitabilty
    12. 12. D.P.S. Inc. The Value Proposition Developing customer loyalty in today’s competitive markets has tangible financial benefits to the business. In a study conducted by the Aberdeen Group a research firm 61% of companies polled said that field service is a strategic operation with revenue and profit goals. A well trained and managed service group can generate revenue and bottom line profits to the organization.
    13. 13. D.P.S. Inc. The Value Proposition Developing customer loyalty in today’s competitive markets has tangible financial benefits to the business. In a study conducted by the Aberdeen Group a research firm 61% of companies polled said that field service is a strategic operation with revenue and profit goals. A well trained and managed service group can generate revenue and bottom line profits to the organization.
    14. 14. D.P.S. Inc. The Value Proposition  Keeping 2% of existing customers impacts profits the same as reducing cost by 10%!  Keeping 5% of existing customers can increase profits 25% to 125%!!!  61% of companies polled by the Aberdeen Group said that field service is a strategic operation with revenue and profit goals.
    15. 15. D.P.S. Inc. Activity One – Core Services  Core services are the fundamental products and services that your organization or work teams provide to your customers.  The reason you are in business.
    16. 16. Questions to answer aboutD.P.S. Inc. your customer base  What do they want?  What do they like about your offer?  What can be improved?  Why do they go to the competitor?
    17. 17. D.P.S. Inc. What Customers Expect  Process  Execution – Predictable – Repeatable  Empower them with information  First Time Resolutions
    18. 18. D.P.S. Inc. Satisfaction – Dissatisfaction Model Satisfaction High Customer Loyalty Zone of Indifference exist in this area High Dissatisfaction Service providers need to understand how to move customers to a level of high satisfaction
    19. 19. Deepen the relationship withD.P.S. Inc. customers Satisfaction Loyalty Expected Over time Price driven Non-financial Short term Non-tangible One experience can “make or break”
    20. 20. D.P.S. Inc. Developing Customer Loyalty  Moving a customer to a high degree of satisfaction from the zone of indifference.  Customer loyalty has to be built on an individual basis one customer at a time.  At each “moment of truth” customers compare/contrast their perception to what actually happen. 20
    21. 21. D.P.S. Inc. Developing Customer Loyalty A Greatly Exceed B Exceed C Meet D Disappointed Fail F Expectations Perceptions
    22. 22. D.P.S. Inc. Developing Customer Loyalty  If the customers perceptions exceed their expectations customers are highly satisfied and develop loyalty.  If their perceptions are about equal the customers are neither satisfied or dissatisfied. They are somewhere in the zone of indifference.  If their perceptions are below expectations customers move to a degree of dissatisfaction resulting in disloyalty.
    23. 23. Influencing CustomerD.P.S. Inc. Satisfaction/Loyalty Customer satisfaction can be influenced in four ways. 1. Influence the customers expectations. 2. Influence the perceptions of your service. 3. Influence what customers actually receive. 4. Concentrate efforts on improving those things that customers really care about.
    24. 24. D.P.S. Inc. Where are you today?  Do you know what your customers think of your company? – The level and quality of service. – Their interactions with your employees.  Do you know what other needs or interest a customer may have?  What do your employees think???
    25. 25. Activity TwoD.P.S. Inc. Customer Service Assessment  Fifteen question assessment for managers, employees and key customers to complete to assess the perception provided by your organization.
    26. 26. Activity Three-D.P.S. Inc. Moments of Truth Exercise  Moments of truth are the contact or touch points that your customers come in contact with some aspect of your business.  This activity has you and your employees identify those moments of truth for your customers.
    27. 27. Questions for the service andD.P.S. Inc. support groups.  Do you feel it is your job to sell additional product and services?  Why or Why not? What you can do? How to accomplish.
    28. 28. copyright 2011 Direct Professional Services Training theService/Support Personnel to Sell!
    29. 29. Business value of service/support staffD.P.S. Inc. selling.  Increase the opportunity for customer referrals, references, and additional business as a result of the interactions between the service technicians, service providers and their customers.  Provide an outline of the steps that can be used by service providers to enhance their skills in communicating and interacting with their customers.
    30. 30. Business value of service/supportD.P.S. Inc. staff selling additional products and services  Enhance the perception of your brand in the eyes of the customers during the service interaction.  Margins (post sale) – 30% to 200% greater than product margins – 25% of total revenue – 50% of operating profits
    31. 31. D.P.S. Inc. Time/Tension Relationship Service Providers should understand to:  Recognize the relationship between relationship tension and task or new opportunity tension that exist during a service call.  Recognize how these tensions change over time.  Reduce the relationship tension in a way that maximizes the opportunity for new business.
    32. 32. D.P.S. Inc. Time/Tension Model Re l at ion sh ip Tension Before Service Call Task or u ni t y p port Ne wO After service is completed Time
    33. 33. Benefits of service and SupportD.P.S. Inc. personal selling additional products and services  Increased customer satisfaction as a result of the quality and completeness of service performed.  Increased opportunities for additional business, referrals, and references, as a result of increased customer loyalty that has been establish.  All of these benefits/values are interrelated which lead to increase sales and revenues for the organization.
    34. 34. Customer CommunicationsD.P.S. Inc. Defined  Interaction between service technicians, service providers and customers.  Dialog with customers prior to performing service.  Dialog with customers during service calls (when possible and necessary).  Dialog with customers after completion of service.
    35. 35. Effective CustomerD.P.S. Inc. Communication Service providers should understand :  Fundamentals of the consultative communication process with customers.  How to decrease the customer’s relationship tension while increasing their task tension.  How to move customers from the “zone of indifference” to a level of high satisfaction.
    36. 36. D.P.S. Inc. Hard Core Sales Techniques  True selling doesn’t start until someone objects to something.  Ask for the sale at least three times.  Don’t take no for an answer.
    37. 37. D.P.S. Inc. Sales Truths People don’t want to be sold they want to make informed buying decisions. People buy the solutions or benefits not the technical features of the product. The cheapest price is not the number one reason people make buying decisions. – Convenience – Peace of mind – Function or performance – Value for the dollars spent
    38. 38. Positive Sales EnvironmentD.P.S. Inc. from a Service Perspective  Need Exist - Product not working  Desire to Address Need – They have called you.  Emotional State – Customer may be upset, highly upset, or happy to see you.  Accepts Solutions that resolves need.  Creditability- customers trust technicians and will listen to recommendations.
    39. 39. Creating A Positive SalesD.P.S. Inc. Environment  Starts with first contact with customer when they call or come in.  Remember what the customer expects (slide 17)  Has the first point of contact been trained in the same concepts being discussed here?  Are employee’s communicating customer information and expectations correctly between themselves?
    40. 40. Creating A Positive SalesD.P.S. Inc. Environment  Acknowledge the emotional state that the customer is in.  You didn’t cause it but you take the impact! – Don’t take it personally – Listen let them vent  You can diffuse the situation or ignite it by what you do or don’t say.
    41. 41. The Consultative SalesD.P.S. Inc. Recommendation  Establish rapport – Introduce yourself – Use their name – Respect their property  Take Action – Confirm the repair (let them explain the situation even if you know what the problem is) – Complete service (explain what you did and demonstrate that product is performing and answer any questions customer may have)  Make recommendation for additional product or service that will benefit the customer.
    42. 42. D.P.S. Inc. PROTEC* The key elements and steps associated with providing a positive interaction with customers  Place yourself in the other’s shoe (show empathy)  Receive information (active listening skills)  Openly communicate (effective questions)  Take action (perform service)  Educate (recommend additional product/service)  Close the call (thank customer for their business) Copyright 2012 David P Scurlock
    43. 43. D.P.S. Inc. Empathy vs. Sympathy  Empathy - Can understand how a person feels, places yourself in their shoes. Don’t necessarily agree with person but you recognize it.  Sympathy – Experiencing the same emotion feeling that the other person is experiencing.  Have empathy vs. sympathy in customer situations.
    44. 44. D.P.S. Inc. Receiving Information  Listening Skills – Pivotal communication skill – Key to internal communications between employees. – Key to developing emotional connection between front-line employees and customers.
    45. 45. D.P.S. Inc. Active Listening Skills Hearing vs. Listening Start with empathy (other’s shoes) Do not react or take personally when the other person is expressing their feelings and emotions. Listen for the key message that person is sending or expressing. Restate in your own words what the other person has stated. Confirm that the other person agrees with your understanding.
    46. 46. D.P.S. Inc. Openly Communicate  After listening to customer restate in your words what you heard and understand.  If necessary ask additional questions  Explain what you are going to do.
    47. 47. D.P.S. Inc. Take Action  Complete the repair or service originally called for in a professional manner.  Determine what additional offers you can make. – Review records that you have • Other product that may require maintenance. • Check up’s that you might perform while there. • Products that will improve the performance or life of the equipment.
    48. 48. D.P.S. Inc. Educate the Customer  Explain to customer what else you can offer them during your visit. – Use any visuals or job aids that you may have. (many times you can provide these to customer while you are completing repair. It keeps them occupied while you are working)  Wait for them to respond (many times they will have a question or statement) – Respond to their question. • (many of my other customer’s have taken advantage of ………… and found …………….. – If they say “no” thank them for the business they have given us. Leave any information that will allow them to make decision in future.
    49. 49. D.P.S. Inc. Close the call  Thank the customer for the opportunity to provide service /support for them.
    50. 50. Steps to New BusinessD.P.S. Inc. Development  Determine what products and services that you have availability to sell. – Outline the major features and advantages of the products and services – Outline the major customer benefits. – Place on a reference sheet to refer to and to share with a customer.
    51. 51. Steps to New BusinessD.P.S. Inc. Development  Determine the target market and customers that you want to develop new business from. – Additional products or services to existing customers – New leads or referrals from current customers – Offer an incentive to customers. – Develop a marketing or awareness plan.
    52. 52. Steps to New BusinessD.P.S. Inc. Development  Determine incentive for service technicians – Cash – Points that can be converted for prizes or gifts  Determine how process will work. – Bring referrals back to office – Close on the spot  Have a meeting to review all aspects of program. – Include sales, operations and admin in meeting.
    53. 53. Activity Four – New BusinessD.P.S. Inc. Development Worksheet  Exercise to develop a marketing strategy or customer awareness program.  Identify the features, advantages and customer benefits of each or your products and services.
    54. 54. copyright 2011 When Things Go Wrong ! Direct Professional ServicesService Recovery
    55. 55. Service Recovery as aD.P.S. Inc. Business Opportunity  Service Recovery- returning an upset customer to a satisfied state and better yet to a very satisfied state. (high degree of loyalty)  Create a situation that leads to additional business, referrals or references.
    56. 56. D.P.S. Inc. Service Recovery  Listen to the concerns of the customer  Listen to what the customer wants.  Make it easy for the customer to resolve their concern.  One size solution doesn’t fits all
    57. 57. The Four Steps ofD.P.S. Inc. Service Recovery  Apologize sincerely- don’t become defensive or make excuses. Show empathy.  Fix the problem- Listen, empathize, and ask open-ended questions that allow the customer to express what they really want. Act quickly with a sense of urgency
    58. 58. The Four Steps ofD.P.S. Inc. Service Recovery  Do something extra as atonement- does not have to be expensive or elaborate. Show the customer that you appreciate their business, you’re sorry for what happen, and you want to add value to the relationship.  Follow up- A call from management or the service person to ensure that the customer is satisfied.
    59. 59. Exercise Five-D.P.S. Inc. Service Recovery  What was a recent customer service situation that you (your company) faced?  Was it the results or the process that the customer was upset with?  How was it resolved? Was a process put in place for future situations? (planned recovery)
    60. 60. copyright 2011 Direct Professional ServicesProcess to Implement a Training Program.
    61. 61. D.P.S. Inc. Process  Start with business focused metrics – Additional sales or services – Increase first time resolutions – New business – Conduct assessment of current skills of employees. – Identify skill gaps and training opportunities
    62. 62. D.P.S. Inc. Process  Provide training in manageable ‘bytes”  Just-in-time vs. Just-in-Case  Create real world environments/situations  Measure short term results  Celebrate successes!!!  Reinforce in the field.
    63. 63. D.P.S. Inc. Good Luck and Thank You For more information on developing a customized training program for your business contact: David P. Scurlock 847-340-3874