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Chapter 15 Servicing the Sale and Building the Partnership © 2010 Education Canada Inc. 15- * Explain how to build long-term partnerships with customer service Describe current developments in customer service List and describe the major customer service methods that strengthen the partnership Learning Objectives © 2010 Education Canada Inc. 15- * Explain how to add value with expansion selling Explain how to deal effectively with complaints Learning Objectives (continued) © 2010 Education Canada Inc. 15- * Servicing the sale encompasses a variety of activities that take place during and after the implementation stage of the buying process Customer retention through value-based initiatives can mean the difference between increasing or eroding market share Building Long-Term Partnerships With Customer Service © 2010 Education Canada Inc. 15- * Customer Service – activities that enhance or facilitate the sale and use of a product Satisfied customers represent an auxiliary sales force Telling six people if received good service Telling twelve people if experienced outstanding service Building Long-Term Partnerships With Customer Service (continued) © 2010 Education Canada Inc. 15- * Repeat sales come after demonstrations of added value: Timely delivery and superior installation Accurate invoicing Technical know-how Social contacts Taking the customer’s point of view, customer advocacy, is a major factor Achieving Successive Sales © 2010 Education Canada Inc. 15- * “Customers are enormously punishing when companies don’t meet their expectations.” Nitin Nohria, professor & author Customers buy expectation of the benefits the salesperson promised, not things Post-sale expectations can increase © 2010 Education Canada Inc. 15- * Responding to Increased Postsale Customer Expectations Be certain your customer strategy is on target Focus like a laser beam on follow-through and follow-up activities Re-examine your product strategy for best fit © 2010 Education Canada Inc. 15- * Responding to Increased Postsale Customer Expectations (continued) High Cost of Customer Attrition © 2010 Education Canada Inc. 15- * High Cost of Customer Attrition (continued) © 2010 Education Canada Inc. 15- * “In this millennium, customer service will become the primary value-added function.” Bill Gates, author Customer service nourishes the partnership Salespeople are in a unique position to enhance customer satisfaction and trust Current Developments in Customer Service © 2010 Education Canada Inc. 15- * Five important service behaviours: Diligence responsiveness and reliability Information communication clear and concise Inducements personalize the relationship Empathy Sportsmanship Current Developments in Customer Service (continued) © 2010 Education Canada Inc. 15- * The skills required after the sale are different from those required prior to the sale Use a worksheet to preplan Customer Service Methods That Strengthen the Partnership © 2010 Education Canada Inc. 15- * Make credit arrangements Schedule deliveries Be present during deliveries Monitor installations Offer training in the use or care of the product Provide price change information Prevent postsale problems Adding Value with Follow-Through © 2010 Education Canada Inc. 15- * Two major objectives: Express appreciation for the purchase Enhance the relationship Determine whether the customer is satisfied with the purchase Adding Value With Customer Follow-Up © 2010 Education Canada Inc. 15- * Five follow-up methods: Personal visit Value reinforcement – reinforcing to the customer the value they are getting from the purchase Telephone E-mail message Letter or Card (continued) Adding Value With Customer Follow-Up (continued) © 2010 Education Canada Inc. 15- * Call Report – is a written summary that provides information on a sales call to people in the organization so that follow-up action can be taken as necessary Follow-up approach used should be tailored to address the objectives for each individual customer © 2010 Education Canada Inc. 15- * Adding Value With Customer Follow-Up (continued) Expansion Selling – is the process used by salespeople to increase revenue or sales from a customer Full-line Selling – the process of recommending products or services that are related to the main item being sold a.k.a. Suggestion Selling (continued) Adding Value with Expansion Selling © 2010 Education Canada Inc. 15- * Full-Line Selling Guidelines: Plan for full-line selling during the preapproach Make recommendations after you have satisfied the customer’s primary need Make your suggestions thoughtful and positive When appropriate, demonstrate the suggested item or use sales tools © 2010 Education Canada Inc. 15- * Adding Value with Expansion Selling (continued) Cross-Selling – selling products to an established customer that are not directly related to the products the customer already bought Welcomed by customers due to consolidation of purchases and convenience Use survey and probing questions © 2010 Education Canada Inc. 15- * Adding Value with Expansion Selling (continued) Upselling – effort to sell better-quality products Requires: Well-established relationship built on trust Continual qualification of prospect throughout the buying process Durability, comfort, and operating economy help to justify cost © 2010 Education Canada Inc. 15- * Adding Value with Expansion Selling (continued) Here is a partial list of people in your company and in the prospect’s company who influence both initial and repeat sales: Receptionists Technical personnel Stock clerks or Receiving clerks Management personnel Always look beyond the customer to who might have a vested interest in the sale Partnership-Building Strategies Encompass All Key People © 2010 Education Canada Inc. 15- * View the complaint as an opportunity to strengthen the business relationship: Give customers the opportunity to disclose their feelings in person Keep in mind that it does not really matter whether a complaint is real or perceived Accept responsibility / ownership (continued) Partnering with an Unhappy Customer © 2010 Education Canada Inc. 15- * Politely share with the customer your point of view concerning the problem’s cause Decide what action must be taken to remedy the problem Value emerges from: Obtainment of information you may not have received otherwise Provide unique opportunities to prove commitment to service Partnering with an Unhappy Customer (continued) © 2010 Education Canada Inc. 15- * When a minor problem services, call the customer personally Do not delegate If you need to apologize for a major problem, meet in person Schedule ASAP Word of Caution © 2010 Education Canada Inc. 15 - *