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Sm 12

  1. 1. Service and Customer Retention - Chapter 12 © Cosmopoint International University College
  2. 2. THE FOLLOW UP AND THE IMPORTANCE OF SERVICES. <ul><li>The salesperson does not end the relationship with customer once a sale has been completed. </li></ul><ul><li>But instead the salesperson wants to pursue a never ending relationship with the customer. </li></ul><ul><li>By providing an effective and efficient service to the customer, you can probably look forward to recurring sales and referrals </li></ul>
  3. 3. How does a salesperson help customers? <ul><li>By following up by maintaining contact with the customer or prospect in order: </li></ul><ul><ul><li>To evaluate the effectiveness of your company’s product and the satisfaction the customer gets, is the final answer. </li></ul></ul>
  4. 4. Building long term business relationship <ul><li>If the salesperson is to have opportunity of selling again, the customer must answer positively to question like these: </li></ul><ul><li>Can I trust this salesperson? </li></ul><ul><li>Did the salesperson and the product do as what was presented? </li></ul><ul><li>Does the salesperson truly care about their customer? </li></ul><ul><li>The diagram explains the importance of follow up and service. </li></ul>
  5. 5. RELATIONSHIP MARKETING (RM) AND CUSTOMER RETENTION <ul><li>RM believes that the idea that important customers need continuous attention. </li></ul><ul><li>The company would like to show to the customer that it has the means to serve the key account’s (corporate customers) needs in a better way, provided it has a committed (bonded) relationship. </li></ul><ul><li>The company’s goal is to get quality customers and more important to retain them in short and long run. </li></ul>
  6. 6. THE PRODUCT AND ITS SERVICE PARTS <ul><li>People buy more than a set of physical attributes. Attributes include packaging, color, brand, the kind of service offered’, and reputation and goodwill of the seller. </li></ul>
  7. 7. THE PRODUCT AND ITS SERVICE PARTS <ul><li>Buyers usually believe an organization ought to deliver a certain level of service to the customers when they purchase products. Below are lists of service expected by customers: </li></ul>
  8. 8. <ul><li>Below are lists of service expected by customers: </li></ul><ul><ul><li>Product – Defect free product </li></ul></ul><ul><ul><li>Price – price is reasonable </li></ul></ul><ul><ul><li>Place – the product can be purchased anywhere. </li></ul></ul><ul><ul><li>Promotion – correct, honest information in advertisement and product labels from the salespeople. </li></ul></ul><ul><ul><li>Exchange transaction – handled correctly, quickly and professionally for the first time. </li></ul></ul><ul><ul><li>After sale service – </li></ul></ul><ul><ul><ul><li>warranty honoured, </li></ul></ul></ul><ul><ul><ul><li>repairs or exchanges done willingly </li></ul></ul></ul><ul><ul><ul><li>Written information on product easily available. </li></ul></ul></ul><ul><ul><ul><li>Easy access to company salesperson or their company employees. </li></ul></ul></ul><ul><ul><ul><li>Technical staff ready to assist onsite or via telephone. (Toll free 1-800-....) </li></ul></ul></ul>THE PRODUCT AND ITS SERVICE PARTS
  9. 9. WHAT IS CUSTOMER SERVICE <ul><li>Customer service refers to the activities and programs the seller provides to make the relationship satisfying for the customer. </li></ul><ul><li>The activities and programs add value to the customer relationship with the seller. </li></ul><ul><li>Warranties, credit, speedy delivery, invoices, financial statements, online ordering, free parking space, gift, gift wrapping and having the required stock when customer requires. </li></ul>
  10. 10. DETERMINING QUALITY SERVICE <ul><li>The quality of service in an organization and its salespeople do provide must be based on its customers’ expectation. </li></ul><ul><li>Customers expect a certain level of service quality from the seller. </li></ul><ul><li>Their expectations frequently are based on information gathered, the information the salesperson provides, past experiences, verbal and personal needs. </li></ul>
  11. 11. CUSTOMER SATISFACTION AND RETENTION <ul><li>Customer Satisfaction refers to the feeling towards the purchase of the product or service. </li></ul><ul><li>If satisfied, chances of selling to the customer in the future increase. </li></ul><ul><li>If satisfied with repeat purchases, customers tend to continue to buy from the same salesperson. </li></ul><ul><li>Satisfaction can result in a customer being loyal to your business, so much it would make it difficult for another seller or business to take your customer away. </li></ul>
  12. 13. HOW DOES SERVICE INCREASE YOUR SALES? <ul><li>By obtaining new customers and selling more products to present customers. </li></ul><ul><li>The best method for obtaining new customers is by way of referrals when they are happy with the service offered by the salesperson. </li></ul>
  13. 15. Sales Process Diagram <ul><li>As explained in the diagram in the slide before, after step 10 of the selling process, </li></ul><ul><li>The salesperson moves back to the second step or preapproach when it is time to plan the next sales call on a customer or prospect. </li></ul><ul><li>The salesperson also is prospecting if needed for in his or her type of sales. </li></ul><ul><li>Thus, the salesperson is involved in the ongoing process of finding new customers and taking care of present customers. </li></ul><ul><li>With this in mind, let’s examine several services and follow up techniques next. </li></ul>
  14. 16. Account Penetration <ul><li>What is an Account? </li></ul><ul><ul><li>An account is an important client or customer (usually a company) of the salesperson and that makes an important business contribution in sales to your company. An Account is a major customer whose business is important to your company success in business. To lose their business could have bad effect on your sales revenue. </li></ul></ul>
  15. 17. What is Account Penetration? <ul><li>An Account Penetration is the ability of a salesperson to work and contact people throughout the account, discussing your products. Successful penetration of an account allows you to properly service that account by identifying its needs and problems. </li></ul>
  16. 18. How To Maximize Account Penetration And Increase Your Sales? <ul><li>Maximizing account penetration is one of the most important functions in sales. The greater the increase in account penetration has an enormous impact on revenues and profitability. </li></ul><ul><li>Think about it – if every one of your company's salespeople sold every product and service in their portfolio (group) to every business unit, department, and division of every account, what kind of numbers would they produce? </li></ul><ul><li>Design job around the key role undertaken by the salesperson rather then asking them acquire technical knowledge which can be handled by a technician or technical specialist or sales engineer. </li></ul>
  17. 19. THE VALUE OF CUSTOMER RETENTION <ul><li>Customer retention is not only a cost effective and profitable strategy, but in today's business world it is a necessity. </li></ul>
  18. 20. THE VALUE OF CUSTOMER RETENTION <ul><li>We need to rethink our overall customer strategies, after all many marketing or sales experts will tell you that it is five times more profitable to spend marketing and advertising dollars to retain current customers than it is to acquire new customers. </li></ul><ul><li>Sophisticated technology and database equipment has made it possible for specialized firms to make attempts at customer retention through database marketing programs. Establishing a detailed client database will allow these companies to keep track of personal information and individual preferences of all their customers. This enables them to provide better service and value. </li></ul>
  19. 21. Customer Retention Strategies <ul><li>A few value-added strategies that you can use include: </li></ul><ul><ul><li>Membership cards and programs that entitle your customers to special offers, discounts, or preferential treatment. </li></ul></ul><ul><ul><li>Welcome, acknowledgement, sales recognition, thank you statements. </li></ul></ul><ul><ul><li>After sales satisfaction and complaint inquiries and surveys. </li></ul></ul><ul><ul><li>Event oriented communications in which the customer is genuinely interested. </li></ul></ul><ul><ul><li>Enhanced and empowered customer, after sales, and technical support. </li></ul></ul>
  20. 22. Customer Complaints <ul><li>Three important aspects of the complaint process are: </li></ul><ul><ul><li>Actively seeking customer complaint. </li></ul></ul><ul><ul><li>Recognizing the type of customer that is complaining. </li></ul></ul><ul><ul><li>Responding appropriately based on the type of complain. </li></ul></ul>
  21. 23. Types of Complaining Customers <ul><li>The Meek Customer . Generally, will not complain. </li></ul><ul><li>The Aggressive Customer . Opposite of the Meek Customer. Readily complains, often loudly and at length. </li></ul><ul><li>The High-Roller Customer . Expects the absolute best and is willing to pay for it. Likely to complain in a reasonable manner, unless a hybrid of the Aggressive Customer. </li></ul><ul><li>The Rip-Off Customer . The goal is not to get the complaint satisfied but rather to win by getting something the customer is not entitled to receive. A constant and repetitive &quot;not good enough&quot; response to efforts to satisfy this customer is a sure indicator of a rip-off artist. </li></ul><ul><li>The Chronic Complainer Customer . Is never satisfied; there is always something wrong. This customer's mission is to whine. Yet, he is your customer, and as frustrating as this customer can be, he cannot be dismissed. </li></ul>
  22. 24. Handling Customer Complaints <ul><li>All good managers want to hear about every complaint their customers have. </li></ul><ul><li>Only when a complaint has been expressed can the appropriate corrective action be taken. </li></ul><ul><li>Without customer complaints management often assumes that everything is okay. </li></ul>
  23. 25. Customer Complaint Procedure <ul><li>Consider the following eight-step customer complaint procedure for handling customer complaints in your organization: </li></ul><ul><ul><li>Provide customers with the opportunity to complain. </li></ul></ul><ul><ul><li>Give customers your full and undivided attention. </li></ul></ul><ul><ul><li>Listen completely. </li></ul></ul><ul><ul><li>Ask the key question: &quot;what else?&quot; </li></ul></ul><ul><ul><li>Agree that a problem exists; never disagree or argue. </li></ul></ul><ul><ul><li>Apologize. </li></ul></ul><ul><ul><li>Resolve the complaint. (Ask again: &quot;what else?&quot;) </li></ul></ul><ul><ul><li>Thank the customer for bringing the complaint to your attention. </li></ul></ul>