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This toolkit has the essentials of sales planning and customer relations, which will help you develop a sales plan, sell more, build relationships and make a profit.

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Enp presentation customer_relations_and_sales_v4

  1. 1. Sales and Customer RelationsGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis 1
  2. 2. Social Enterprise Sales and CustomerRelations ToolkitPutting sales and customer service in a socialenterprise modelGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  3. 3. This toolkit has the essentials ofsales planning and customerrelations, which will help youdevelop a sales plan, sell more,build relationships and make aprofit.Presented by ENP and Octopus StrategiesGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  4. 4. A social enterprise must sell, make aprofit and have customers who believein their cause and products – all whiledoing good.Otherwise, it’s just a good hobby!Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  5. 5. SalesGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  6. 6. Social enterprise and saleso A social enterprise uses business as the primary means of achieving itssocial mission or purpose.o Selling in a competitive marketplace is central to a social enterprise.o This is unlike non-profits, whose market activity is not the primary means ofachieving their mission.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  7. 7. Different ways of sellingo Direct Selling: when products/services are sold directly to customers. Ithelps to build relationships with customers: Direct communication createsopportunities to understand the needs, opinions and experiences of thecustomer.o Selling Wholesale: when not selling directly to consumer, but through asupplier. Supply relationships, prices and choosing the right wholesaler arecrucial here.o Online (or Tele) Sales: when sold online or over the phone.It’s cost efficient and a good way of selling to repeat customers.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  8. 8. How to sell moreA good sales person will:o Sell with enthusiasm, for what your social enterprise is offering andaccomplishing.o Communicate your belief in the product/service to potential customers.o Follow a sales plan, phased over time, that explains sales targets, howsales will be made and to whom.o Understand your customer because meeting their needs and expectationsis the foundation for any small business.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  9. 9. 5 ways to increase revenueo Cut your costso Sell moreo Change your product mixo Increase your priceso Combine one or more of these elementsGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  10. 10. Both social enterprises and non-profitswork to create a positive social orenvironmental impact.But the models are very different.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  11. 11. Sales is not fundraising:What’s the difference?• ...PositioningFundraising Saleso Potential funders?o Frequency offunds?o Donorengagement?o Funderreporting/control?o Deserving?o Demand?o Pricing?o Communications?o Distribution?o Partners?o Customers?Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  12. 12. o Many social enterprises mistakenly assume that they canget away with a lower service level because theircustomers appreciate that they’re a worthy cause.o However, a good cause cannot make up for bad service oran inferior product.Working for a worthy causedoes not guarantee business:The Four P’sGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  13. 13. A social enterprise can achieve itsmission if it makes a profit. The more itearns, the more it can support its workand social impact.A smart sales plan is key here.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  14. 14.  Market segmentation Resource development and allocation Advertising strategy Marginal cost analysis14Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk AnalysisA robust sales plan has the following four keyelements:Each will be discussed in detail in the following slides.
  15. 15. Market segmentationA market segment is a group of customers, users or supporters. Theyhave similar needs. Each segment is different from the other andneeds tailored treatment and a customized communication plan.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  16. 16. Market segmentationThe market can be segmented based on the following parameters:Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk AnalysisGeographic Demographic BehaviouralPsychographic“Customerswithin Xkilometres ofyourorganization”“Customerswithin Xkilometres ofyourorganization”“Male Indo-Canadianuniversitystudents”“Male Indo-Canadianuniversitystudents”“Customerswantingvalue formoney”“Customerswantingvalue formoney”“Customerswho preferto buy fairtrade food”“Customerswho preferto buy fairtrade food”CustomerlocationRegionUrban/ruralIncomegroupsAgeGenderOccupationSocio-economicgroupRate ofusageBenefitssoughtLoyaltystatusReadinessto purchasePersonalityLifestylesAttitudesClass
  17. 17. Social Enterprise Sales and Marketing ToolkitExercise #1: Customer profiling worksheetGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk AnalysisDemographics Psychographics BehavioursAge Conservative PriceGender Liberal QualityProfession Conformist Brand name recognitionEducation level Experimental Customer serviceIncome Environment friendly Discounts and salesMarital status Socially conscious Attractiveness of packagingNo. of children Fashion forward Convenience of store locationGeographic location Family oriented Guarantees/warranties
  18. 18. Who is your customer?Once you have identified your market, understand your customer.Think specifically about the relationship that you want to have withyour customers. How do you want them to perceive your socialenterprise? Understanding who they are, their needs, expectations; canhelp you communicate well and sell more.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  19. 19. Answering the following questions will help you know your customer:oDo you know who your existing customers are?oWhere do they live or work?oWhy do they use your product/service? What needs does it meet? Is there aparticular benefit that your product delivers?oHow do they use your product/service?o Are your customers satisfied?o How do you communicate with them? Do they share their feedback withyou?Social Enterprise Sales and Customer RelationstoolkitExercise #2: Know your customer
  20. 20. Resource development andallocationBased on your organization’s profile, you need to decide theresource commitment to the sales plan, staff, material assetsand finances. Questions that you have to answer:o Will people need training?o Will you need a bank overdraft?o Will there be a need for an internal reorganization?o Will you need to use external consultants?o Will extra production, sales or administrative staff be required?Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  21. 21. Advertising strategyAdvertising strategy determines how you reach your customersand what the message will be.It depends on:o Brand positioningo Brand propositiono Brand strategyo Creativeo Media planningGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  22. 22. Advertising strategyYour business goals determine where you should advertise. Differentmediums reach and impact the market differently. For example, radiogenerates interest in your product/service but it’s reach is narrow. Incontrast, television grows the market broadly.Please refer to our presentation ‘Medium and Message’, a part of theMarketing toolkit, to understand how different mediums reach differentaudiences.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  23. 23. Marginal cost analysis (MCA)MCA consists simply of a calculation of what extra sales are generated at whatcost in terms of the advertising budget and wage costs. You have to assesshow much extra income is generated and the degree to which this generates agross profit or ’margin’.It is not necessary for a marketing drive to generate a profit since it may haveother purposes: to increase market recognition prior to introducing a newproduct or to clear a warehouse of stockpile, for instance. But the ’marginalcost’ or ’marginal benefit’ of the marketing drive (i.e., what is lost or gainedcompared to the situation now) must be calculated.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  24. 24.  New product Market Cost-plus pricing24Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk AnalysisThere are three broad pricing strategies:Each will be discussed in detail in the upcoming slides.
  25. 25. Pricing strategiesDifferent factors determine how you price your product orservice:o New product: You could either take advantage of demand for a newproduct/service (Price Skimming) or set a fairly low price to gain marketshare (Penetration Pricing).o Market: This is important too. You need to understand your market, thecompetitors and how it affects your product/service.o Cost-plus pricing: Most businesses use the total of their overhead costs andadd a margin to fix prices (after all, you can’t operate at a loss).Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  26. 26. Prices and the marketIn a competitive market, the price of your product or service alsodepends on the competition. The following parameters will help youdetermine the pricing strategy:o How does your product perform?o What is its quality? How does it look?o How is it packaged and presented?o How does it compare to the competition?If your product or service quality is better than your competitors, then charge ahigher price.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  27. 27. Remember:Pricing strategies can changepeople’s behaviour. Moreexpensive is sometimes perceivedas better quality, which can helpthe reputation of your organization.Meanwhile, low prices couldpersuade people to buy more fromyou.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  28. 28.  Market segmentation Marketing mix Marketing objectives Research Plan28Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk AnalysisIt’s important to do your homework well before youreach your customers. Here is what you need toconsider:The following slides will explain this in greater detail.
  29. 29. Market segmentationThis concept has been explained earlier. Please refer to slides 15 and16.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  30. 30. Marketing mixThe four Ps: product (or service), price, place and promotion informhow to market your organization.The concept of marketing mix has been dealt with in great detail in the SocialEnterprise Marketing Toolkit.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  31. 31. Marketing objectivesA well defined set of measurable and quantifiable marketing objectivesis essential before you move out in to the market with a marketingplan. You must know what you wish to achieve - more customers, users,sales/visits, loyalty, increased support, higher prices or more profits/resources.Your marketing plan will be governed by your objectives.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  32. 32. ResearchLet’s face it - you are not the only one in the market. Competition isreal. Understanding market dynamics and knowing what’s current isessential to any business.You must look at both the external situation (demand, supply, trends,legislative or technical change, attitudes amongst other factors) andinternal issues (ability to deliver, effect of marketing, costs andorganizational change needed).Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  33. 33. The Marketing PlanThe outcomes of market segmentation, marketing mix, objectives andresearch, lead to a marketing plan.To implement one, you will need to assign responsibilities, allocateresources, set a timetable, organize systems for monitoring and reportback.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  34. 34. Develop a Sales PlanYour Sales Plan will be determined by the features of product or serviceyou want to sell, its price, the skills of your sales team, yourdistribution network, key partners, your customer service and retentionstrategy.As a start-up, you must think through if you will sell directly toyour customers on your own or will you outsource it and sell throughpartners.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  35. 35. Your Sales TeamYour sales team is the face of your social enterprise. It’s the linkbetween your organization and customers. As you build a team,remember your sales team must:o Know your customer as well as you doo Be passionate about your product/serviceo Never commit to something they can’t delivero Develop an emotional connect with your customers. A phone call over anemail can make the difference.o Never belittle your competitiono Always follow througho Focus on goals rather than individual sales targetGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  36. 36. Train your Sales TeamRight coaching will make your sales team effective and efficient. A good trainingprogramme must:o Help them learn to engage the customer bettero Develop their questioning and listening skills. This often leads to sales rather than a goodpitcho Make them independent. This will make them feel confident and hence more effectiveo Help the team build trust and rapport with the prospectso Prepare the team to handle objections and prepare appropriate responses to overcomethemo Develop their skills to spot buying signals and to ask for businesso Cultivate the principles of customer service in their behaviour and follow up after the saleGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  37. 37. What your sales team should doQualify customers: The salesperson who asks the right questions to the right people,at the right time, at the right place, will have many qualified prospects.o Who:- Who has a need for your product/service?- Who has the money to buy it?- Who has the most urgent need for it?- Who has the influence over the prospect?o Where:- Where does your prospect live, work, socialize?- Where can you find a suitable mailing list to reach them?- Where will you go to contact new prospects?Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  38. 38. What your sales team should doo What:- What will the prospect find most beneficial about your product/service?- What questions can you ask that will get the prospect to talk about his needs?- What information you must gather about your prospect before you meet him?- What is the single biggest problem the prospect has?o When:- When is the best time to contact the prospect?- When to contact the prospect again if your first efforts were not successful?Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  39. 39. What your sales team should doClosing: One of the most important stages of selling is closing the deal.Here are some interesting closing techniques:o Alternative close: Offering limited set of choiceso Bonus close: Offer delighter to clinch the dealo Empathy close: Empathize with themo Yes-set close: Get them to say yes and they will keep saying yeso Save the world close: Buy now and help save the world.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  40. 40. Social Enterprise Sales and Marketing ToolkitExercise #3: Sales teamYou are as successful as your sales team. Before you build one,consider:o How will you recruit and build your sales force? Hiring the rightperson can make or break the team.o How will your sales people sell? What are their skills? How welldo they understand your product or service?o What is the team reporting structure?o If the members have authority to negotiate?o If they solve problems? How do they respond to demandingsituations?Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  41. 41. CustomerRelationsGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  42. 42. Value is created by buildingrelationships, addressing customerneeds and focusing on continuousimprovement.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  43. 43. Customer relationsCustomer relations for any business means:o Customer loyaltyo Managing communications and addressing complaintso Building long-term relationshipso Building a strong reputationo Linking “Internal” and “external” customers to all stakeholders - staff,customers, outside vendors, shareholders and othersGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  44. 44. What social enterprises dowrongo Some focus only on social side of their business, at the expense of thecommercial aspecto Others spend an inordinate amount of time managing relationships withfunders, beneficiaries and stakeholderso Result: little time is left to run the businessGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  45. 45. Who is your customer?To build relationships with your customers, you need to know themfirst. Refer to slide 17 for tips on how to better know your customer.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  46. 46. What do your customers thinkabout?o Image: Includes first impressions, openness, reputation, positive values andphysical appearance of premises and peopleo Products/Services: Are they up to scratch, well priced/good value? How canthey be improved? What new features do customers want?o Delivery: How do you deliver your products/services? Do you care for yourcustomers? Are you communicating well with them? How good are you atcustomer services?o Loyalty and attachment: The willingness of customers to continue usingyour organization’s products and services, and recommending theorganization and its products or services to others are key to yourorganization’s sustainabilityGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  47. 47. How to understand yourcustomers’ need andexpectations?The best way to know more about your customers’ needs is to collectinformation about them.Why ask? To improve your product or service, to develop newproducts, improve delivery and promotion.What to ask? Begin with the end in mind. It should have a clear purpose.What to do with it? Once you have measured how satisfied yourcustomers are, make use of the results to improve your organizationand the products and services you provide.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  48. 48. How to understand yourcustomers’ need andexpectations?Who will you collect information from? Directly from customersor internally from within the organization.What information should you collect? The right questions which coverthe facets, concerns and values of most importance to customers.How will you ask? Request feedback from customers or monitor internalperformance indicators that demonstrate either customer satisfactionor quality of customer service.When should you ask? At various, milestone times, throughout therelationship.What type of information should you collect? Qualitative, demographic /psychographic, behavioural and geographic.Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis
  49. 49. Social Enterprise Sales and Marketing ToolkitExercise #4: Customer research planning tableGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk AnalysisWhat doyou needto knowWho do youneed to askHow will youuse theinformationHow will youseek theinformationWhen are yougoing to findoutWho isresponsible forfinding out
  50. 50. Keeping Customers HappyGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk AnalysisIt’s important to understand why your customers have chosen to dobusiness with you. This will help you retain them over the long run.Look at the whole customer experience:o Deliver value, everydayo Act promptly to fix problemso Review service at the highest level
  51. 51. Build Customer LoyaltyGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk AnalysisIt is crucial for any organization to have loyal customers. This leads torepeat purchase, word of mouth advertising and hence reducedmarketing costs. To earn customer loyalty:o Hire intelligently. Get those who are friendly, naturally good at getting toknow others.o Be positive and personal towards your customers. Listen to their needs.Obtain their feedback.o Prevent a complaint. If one arises, resolve it immediately.
  52. 52. What social enterprises can doo Strive hard to make their customers happyo Fit their brand and message to the target marketo Develop the right marketing mixo Negotiate good dealso Focus on the quality and delivery of products and services they offerGovernance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ BusinessOperations ■ Customer Relations ■ Marketing ■ Risk Analysis

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