chap14ServiceandFollow-upforCustomerRetention.ppt

Service and Follow-up for Service and Follow-up for Customer RetentionCustomer RetentionChapterChapter14ChapterChapter14Main TopicsMain TopicsThe Business Tree of Life:ServiceThe Importance of Service and Follow-UpBuilding a Long-Term Business FriendshipRelationship Marketing and Customer RetentionThe Product and Its Service ComponentCustomer Satisfaction and RetentionChapterChapter14Main TopicsMain TopicsChapterChapter14Excellent Customer Service and Satisfaction Require TechnologySo,How Does Service Increase Your Sales?Turn Follow-up and Service into a SaleAccount Penetration Is a Secret to SuccessService Can Keep Your CustomersYou Lose a CustomerKeep on TruckingMain TopicsMain TopicsChapterChapter14Increasing your Customers SalesReturned Goods Make You a HeroHandle Complaints FairlyIs the Customer Always Right?Build a Professional ReputationThe Tree of Business Life:ServiceGuided by The Golden RuleThe Golden Rule:Prove you truly care with royal serviceProve what you said in your presentation was the truthTake your time to build long-term business friendshipsRealize that customer satisfaction leads to customer retentionPlace the customers interest before your ownYou can see that ethical service builds true relationshipsITCEthicalServiceBuilds T r u eRelationshipsTT TT T T TT TT TOnly Through Truth Can Trust Be Supported to Bridge the Gap Between PeopleThe Importance of Service and Follow-UpHow does this chapter refer to service?As part of a product,such as insurance or advertising?In the context of helping others?Correct!Service Refers To:Helping othersWhat Is the Difference between Service and Follow-Up?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 customerSales ProverbsSales Proverbs!Examples are:You do business with the one you trust and you trust the one you knowObtaining new customers and selling more products to present customers are the ways to increase salesIt is always easier to sell a satisfied customer than to an unsatisfied one or a prospectThe cost of acquiring a new customer is higher than keeping a present customerWhat Do These Sales Proverbs Mean to a SalespersonTake excellent care of your current customersWhen Does the Business Relationship Begin?After you first sell someone and they become a customerWhich of the Following Is the Purpose of the Sales Call?Is it:Solely to make a sale?To help someone?Now You Have it!The Purpose Is to:Help someone by:Solving a problemFulfilling a needIs Being More Concerned For Helping Someone than Making the Sale Hard for Most People?Yes it is!Motivation needs to come from the heart,not from the bank accountExhibit 14-2:If Customers are Truly Important,Their Needs Come FirstPutting the Customer First Requires Salespeople to Have Personal Characteristics That Allow Them to:Care for the customerTake joy in their workFind harmony in the sales relationshipHave patience in closing the saleBe kind to all peopleHave high moral ethicsBe faithful to their wordBe fair in the saleBe self-controlled in emotionsHow Would You Answer these Questions:Do these success characteristics describe you?Do you have all,or part of them?Can you develop the missing ones?Once Again,Are You:Caring?Joyful?Able to get along with others?Patient?Kind?Ethical?Honest?Fair?Self-controlled?These Personal Characteristics Are Important if You Want to:Have personal friendsHave business relationshipsBuilding a Long-Term Business FriendshipWhat Is A Business Relationship?A relationship revolving around business issuesA business relationship is much like a personal friendshipThe Three Levels of FriendsLevel 1 AcquaintanceLevel 2 FriendLevel 3 Intimate FriendExhibit 14-3:Trust and Wisdom in a Relationship Grow Over TimeAcquaintanceHighLowTrustHighLowWisdomFriendIntimate FriendTo Move up in Levels of Friendship Requires:T-I-M-ETruly caring for other peoplePlacing their interests before yoursRelationship Marketing and Customer RetentionTransaction selling sells onceRelationship selling periodically stays in touchPartnering continually works with customersHow Does Relationship Marketing Build Friendships?Creates customer loyaltyResults in retentionThe Product and Its Service ComponentCustomer serviceProductPricePlacePromotionExchange transactionAfter the saleExpectations determine service qualityPeople Buy the Product Plus What?Plus the services(other attributes of the product)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 sellerHere Are Several Expected ServicesProduct has no defectsPrice is fairProduct is available when and where neededCorrect,honest advertisingTransaction handled correctly,quickly,professionallyWarranty honoredIn a Business Friendship,How Can You:Mistreat a person you consider a friend?Be uncaring,sad,pushy,impatient,rude,unethical,untruthful,self-centered,and/or emotional?Customer Satisfaction and RetentionCustomer satisfactionFeelings towards purchaseCustomer retention if satisfied,they will buy againExhibit 14-4:Customer Retention:When the Buyer is Satisfied with Purchases Over TimeExcellent Customer Service and Satisfaction Require TechnologyTechnology and automation is often required to provide excellent service So,How Does Service Increase Your Sales?Service increases sales by helping you obtain new customers and sell more to present customersSatisfied customers will provide customer referralsReferrals are very important for:Future salesMore referralsExhibit 13-4:Sales Come From Present and New CustomersSalespeople are constantly involved in follow-up and service in addition to planning future sales calls to customers;they also spend time prospectingTurn Follow-up and Service Into a SaleConvert follow-up and service situations into salesFollow-up and service help satisfy the needs of customersThe Circular Relationship in Managing a Sales CallAccount Penetration is a Secret to SuccessAccount penetrationDetermined by:Total and major-brand sales growth in an accountDistribution of the number of products in a product lineLevel of cooperation obtainedYour reputation as the authority on your type of merchandise for the buyerService Can Help You Keep Your CustomersConcentrate on improving your account penetrationContact new accounts frequently on a regular scheduleHandle customers complaints promptlyAlways do what you say you will doProvide service as you would to royaltyShow your appreciationYou Lose a CustomerKeep on TruckingTo win back a customer:Visit and investigateBe professionalDont be unfriendlyKeep callingIncreasing Your Customers SalesDevelop a customer benefit programHave present customers buy more of a product than they currently useHave present customers buy the same products to use for different purposesIncreasing Your Customers Sales,contTo increase sales with a customer:Develop an account penetration programExamine your distributionKeep merchandise in the warehouse and on the shelfFight for shelf space and shelf positioningAssist the products usersAssist the resellers salespeopleDemonstrate your willingness to helpObtain customer supportExhibit 14-9:A Super Sales Success SecretReturned Goods Make You a HeroCheerfully return merchandise following the companys returned goods policiesIt is in your best interest to return faulty merchandise Handle Complaints FairlyCustomers may be dissatisfied with products for any number of reasons“The customer is always right”Occasionally a dishonest customer may require you and your company not to honor a requestCustomers should get the benefit of the doubtTake care of your customersIs the Customer Always Right?“Always”is the key word in the phraseThe Author of Your Textbook Feels the Customer is Not Always RightIs he correct?How Does One Know What is Right or Wrong in a Business Setting?What can you use to make a morally ethical decision when dealing with a customer?Company guidelinesLegal lawsWhat the boss saysWhat else?Dress in Your ArmorYou need to be prepared to meet a few unethical and dishonest peopleThey may ask you to do something unethical and/or dishonestWhat is Meant by“Dress in Your Armor”?Armor is something that will protect you,but from what?You need protection from a person who is unethical and/or dishonest with you,such as:A customer or prospectA competitorA co-workerYour bossYour Armor Consists of:Speaking the truthDoing what is rightReadiness to discuss what is ethicalTrusting you know what is right,honest,and ethical Build a Professional ReputationBe truthful and follow through on what you tell the customerMaintain an intimate knowledge of your firm,its products,and your industrySpeak well of othersKeep customer information confidentialBuild a Professional Reputation,contNever take advantage of a customer by using unfair,high-pressure techniquesBe active in community affairs make your community a better placeThink of yourself as a professional and always act accordinglyProvide service“above and beyond the call of duty”Dos and Donts for Business SalespeopleA survey of purchasing agents showed the most important traits that purchasing agents found in their top business sales people:Willingness to go to bat for the buyerThoroughness and follow-throughKnowledge of the firms product lineMarket knowledge and willingness to“keep the buyer posted”Imagination in applying their products to the buyers needsKnowledge of the buyers product linePreparation for sales callsRegularity of sales callsDiplomacy in dealing with operating departmentsTechnical knowledge of specifications and applicationsDos and Donts for Business Salespeople,contSeven deadly sins of business sellingB.J.Hughes checklists of dos and dontsExhibit 14-10:The Seven Deadly Sins of Business SellingExhibit 14-11:B.J.Hughes Checklist of Dos and Donts Help It to be a Customer-Oriented CompanyThe Path to Sales Success:Seek,Knock,Ask,ServeSeek customers to serve and you will find themKnock and people will open their doorsAsk and people will buyProvide service after the sale and customers will buy againSelling requires the three FsFaithFocusFollow-through Summary of Major Selling IssuesSalespeople increase sales by obtaining new customers and selling more to present customersCustomer referrals are the best way to find new prospectsBy building a relationship and partnership,you can provide a high level of customer serviceCustomers expect serviceTo serve customers best,improve account penetrationSummary of Major Selling Issues,contAlways 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 Todays professional salesperson is oriented toward service