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14-1
Service and Follow-up for Service and Follow-up for Customer RetentionCustomer Retention
Service and Follow-up for Service and Follow-up for Customer RetentionCustomer Retention
Chapter
Chapter
14
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
Chapter
Chapter
1414-3
Main TopicsMain TopicsMain TopicsMain Topics
The Business Tree of Life: ServiceThe Importance of Service and Follow-UpBuilding a Long-Term Business Friendship
Relationship Marketing and Customer RetentionThe Product and Its Service Component
Customer Satisfaction and Retention
Chapter
Chapter
1414-4
Main TopicsMain TopicsMain TopicsMain Topics
Chapter
Chapter
14
Excellent Customer Service and Satisfaction Require Technology
So, How Does Service Increase Your Sales?Turn Follow-up and Service into a Sale
Account Penetration Is a Secret to SuccessService Can Keep Your Customers
You Lose a Customer—Keep on Trucking
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Main TopicsMain TopicsMain TopicsMain Topics
Chapter
Chapter
14
Increasing your Customer’s SalesReturned Goods Make You a Hero
Handle Complaints FairlyIs the Customer Always Right?Build a Professional Reputation
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Words of Sales Wisdom and Proverbs
Sales 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 sales
It is always easier to sell a satisfied customer than to an unsatisfied one or a prospect
The cost of acquiring a new customer is more costly than keeping a present customer
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Service–What Is It?
Which of the following is the meaning of customer service as discussed in the “Service and Follow-Up for Customer Retention” chapter?1. Service is part of a product, such as insurance
or advertising?
Or
2. Service makes a contribution to others?
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Correct! Service Refers To:
Making a contribution to others such as our customers
In Chapter 1 we defined “service” as part of a product, such as insurance or advertising. Most of the text refers to service in the context of helping others, and that is the emphasis of this chapter
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What Is the Difference between Service and Follow-Up?
Follow-up refers to maintaining contact with a customer in order to evaluate the effectiveness of the product and the satisfaction of the customer
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What Is A Business Relationship?
A relationship revolving around business issues
A business relationship much like a personal friendshipTrust and wisdom in a relationship (personal or
business) grow over time.Years may pass before an intimate friendship
develops between buyer and seller.
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Exhibit 14-3: Trust and Wisdom in a Relationship Grow Over Time
Acqua
intan
ce
High
Low
Tru
st
HighLow Wisdom
Friend
Intim
ate
Friend
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The Product and Its Service Component
Customer service – refers to the activities and programs the seller provides to make the relationship satisfying for the customer. Here are some customer expected services: Product – the product purchased has no defects Price – fair value for the price Place – the product is available when, where and as promised Promotion – correct, honest information in advertisements, from sales
people and on product labels Exchange Transaction – handled correctly, quickly and professionally
the first time After the Sale – warranty honored, repairs/exchanges made cheerfully;
good product assembly and usage instructions Expectations determine service quality
The customer’s expectations being met determine the level of satisfaction
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People Buy the Product Plus What?
A product is a bundle of tangible and intangible attributes, including packaging, color,and brand, plus the services and even the reputation of the seller.
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So What Would Be Meant by the Term “Product Plus?”*
The product is a good or service “Plus” refers to the other attributes of the
product as described in the definition
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“Plus” Also Refers to Such Things As:
Product has no defects Price is fair Product is available when needed Correct, honest advertising Warranty honored
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In 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?
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Customer Satisfaction and Retention
Customer satisfaction; refers to:Feelings towards purchase
Customer retention – if satisfied, they will buy again
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Exhibit 14-4: Customer Retention: When the Buyer is Satisfied with Purchases Over Time
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So, How Does Service Increase Your Sales?
You increase sales by obtaining new customers and selling more to present customers
Satisfied customers will provide customer referrals – W.O.M. is critical
Thus very important to service forFuture salesReferrals
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Exhibit 14-5: Sales Come From Present and New Customers
Salespeople are constantly involved in follow-up and service in addition to planning their next sales call on the customer; they also spend time prospecting
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Turn Follow-up and Service Into a Sale
Convert follow-up and service situations into repeat or new sales
Follow-up and service help satisfy the needs of customers
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Account Penetration is a Secret to Success
Account penetration The ability to work and contact people throughout the
account, discussing your products Ex: if one department/division is buying my office supplies,
can I “penetrate” other department/divisions also buy? The greater you penetrate, the greater you chances of
maximizing sales within the account
Determined by: Total and major-brand sales growth in an account Distribution of the number of products in a product line Level of cooperation obtained Your reputation as the authority on your type of
merchandise for the buyer
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Service Can Help You Keep Your Customers – How?
Concentrate on improving your account penetration
Contact new accounts frequently on a regular schedule
Handle customer’s complaints promptly Always do what you say you will do Provide service as you would to royalty Show your appreciation
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You Lose a Customer–Keep on Trucking
To win back a customer:Visit and investigateBe professionalDon’t be unfriendlyKeep calling
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Increasing Your Customer’s Sales
Develop 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 purposes
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Increasing Your Customer’s Sales, cont…
To increase sales with a customer: Develop an account penetration program Examine your distribution Keep merchandise in the warehouse and on the shelf Fight for shelf space and shelf positioning Assist the product’s users Assist the reseller's salespeople Demonstrate your willingness to help Obtain customer support
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Returned Goods Make You a Hero
Cheerfully return merchandise following the company’s returned goods policies
It is in your best interest to return faulty merchandise
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Handle Complaints Fairly
Customers 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 request
Customers should get the benefit of the doubt
Take care of your customers
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Is the Customer Always Right?
“Always” is the key word in the phrase
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The Author of Your Textbook Feels The Customer is Not Always Right
Is he correct?
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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?
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Dress in Your Armor
You need to be prepared to meet a few unethical and dishonest peopleThey may ask you to do something unethical
and/or dishonest
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What 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 boss
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Your Armor Consists of:
Speaking the truth Doing what is right Readiness to discuss what is ethical Trusting you know what is right, honest and
ethical
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Build a Professional Reputation
Be truthful and follow through on what you tell the customer
Maintain an intimate knowledge of your firm, its products, and your industry
Speak well of others Keep customer information confidential
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Build a Professional Reputation, cont…
Never take advantage of a customer by using unfair, high-pressure techniques
Be active in community affairs – make your community a better place
Think of yourself as a professional and always act accordingly
Provide service “above and beyond the call of duty”
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Do’s and Don’ts for Business Salespeople
A 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 buyer Thoroughness and follow-through Knowledge of the firm’s product line Market knowledge and willingness to “keep the buyer posted” Imagination in applying their products to the buyer’s needs Knowledge of the buyer’s product line Preparation for sales calls Regularity of sales calls Diplomacy in dealing with operating departments Technical knowledge of specifications and applications
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Exhibit 14-10: The Seven Deadly Sins of Business Selling
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Summary of Major Selling Issues
Salespeople increase sales by obtaining new customers and selling more product to present customers
Customer referrals are the best way to find new prospects
By building a relationship and partnership, you can provide a high level of customer service
Customers expect service To serve customers best, improve account
penetration
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Summary of Major Selling Issues, cont…
Always strive to help your customers get the best use from products you have sold them or to increase the resale of these products
Today’s professional salesperson is oriented toward service