Service Quote

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Closing a sale is like getting a single in baseball. All it does is put you on first base. The only way to advance and score in the game of selling is to give service. Sales Upbeat, Nov 10, ‘94 Service Quote

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Service Quote. Closing a sale is like getting a single in baseball. All it does is put you on first base. The only way to advance and score in the game of selling is to give service. Sales Upbeat , Nov 10, ‘94. Service Quotes. - PowerPoint PPT Presentation

Transcript of Service Quote

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Closing a sale is like getting a single in baseball. All it does is put you on first base. The only way to advance and score in the game of selling is to give service.

Sales Upbeat, Nov 10, ‘94

Service Quote

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Service Quotes

We are in business to exceed customer expectations (West Central Co-op mission statement).

People are loyal to people who meet their expectations. This is true not only in business but also in our personal lives. (Jim Magnuson)

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Not Coming Back?

According to Reece and Manning (Selling Today), which of the following is the most common reason for ‘lost’ (non returning) customers?

a) Too high of a priceb) Poor product performancec) Poor customer serviced) Customer retirement or deathe) None of the above

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Don’t Complain About Complaints?

Joan, a new sales rep for Agri King, has been told during a sales training session that she should welcome customer complaints. She always thought customer complaints were a ‘bad’ thing. Why does her supervisor view complaints differently?

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Sell It or Bag It?

Randy, the meat department manager at a HyVee grocery store, has just complained to Amanda, the Hormel sales rep for that store. His complaint suggests a relatively new Hormel product introduced to him by Amanda is not selling as well as he thinks it should. How should Amanda respond to Randy?

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What Do Farmers Want?

According to recent survey results by a prominent crop input supplier, rank the following from least important to most important to crop farmers in determining their level of satisfaction with their supplier.

Agronomic knowledge Billing/invoicing Deliver what was promised Delivery of products Earns your personal trust East of doing business Range of products offered Responsiveness to my service needs Quality of custom application Value for price paid

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I Remember a Time When . . .

Think about a time when you received either excellent or very bad customer service treatment. What were the specifics of the incident? What did you do shortly after the incident, if anything? Do you believe the way you reacted was typical?

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Don’t Be ‘Chicken’?

What is company policy for handling a customer complaint about product quality for the Perdue Company (large national chicken selling company)?

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The Key to Profit?

According to a prominent Harvard Business Review article (“Putting the Service-Profit Chain to Work”) what is the key to profitability for most companies?

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Until Death Do Us Part?

John is a sales manager for Central Iowa Motors. He is trying to calculate how much his company can afford to spend on customer service in order to keep a “customer for life”. How should John calculate that? What suggestions could John give his sales reps for providing excellent service?

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Customer Service and Expectations

“All discontent is relative to expectations.” Customers buy in expectation of receiving

benefits; if actual or perceived benefits fall short of expectations, the customer is usually unhappy.

The salesperson should make sure that the customer’s expectations are not only met, but also exceeded!

Promise a lot, but deliver more.

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Service and Follow Up is . . .

That part of the sales process that creates the best opportunity for repeat business

Critically important to both new and established customers

Becoming the primary value-added function in selling

The best way to enhance a business relationship

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Service and Follow Up is . . .

The main thing that makes the customer feel he/she made a good purchase decision

Is the consummation of the deal Is often a team effort (involving receptionist,

billing department, delivery staff, etc.) What you and your company do for the

customer after the sale is made

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Reasons for Lost (non returning) Customers

Reason (concern) %

Price 10-15

Product 12-15

Service 50-70

Source: Reece/Manning

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Customer Service Research Results

Satisfied customers: good experience => they tell 6 others Excellent experience => they tell 12 othersDissatisfied customers: Only about 1 of 25 complain to the company On average, tell 8-10 others About 95% will continue to buy if complaint handled

well On average, tell 5 others if complaint resolved well 4-5x as costly to regain a lost customer as keeping a

current one

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Customer Service Research Results

Conclusions ?

Be thankful customers complain so you can fix the problem and prevent ‘the cancer’ from spreading

If you don’t have repeat business, soon you won’t have any business

An estimate of the importance of repeat business is “customer lifetime value” = present value of expected future profits from doing business with a customer

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Providing Excellent Customer Service is . . .

Following through on all of your promises to the customer

Delivering your product/service– On time– At right place– In correct quantity and condition

Installing product properly Interpreting warranty

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Providing Excellent Customer Service is . . .

Assisting customer with payment/financing arrangements

Training customer on use of product

Being available to answer any questions/handle problems

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Some Little (?) Things a Salesperson Can Do to Provide Excellent Service

Follow up visit (not to sell again, but to check on previous sale)

Maintain positive, helpful, friendly attitude Give customer something they didn’t expect Make customer feel important and know

them by name

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Some Little (?) Things a Salesperson Can Do to Provide Excellent Service

Be there at or shortly after delivery– Sends message you stand behind your product and your

word– Makes sure you are instantly aware of any delivery

problems– Can clear up any customer confusion about product or

misunderstandings

Thank customer, commend them, and invite any questions/feedback (via letter, card, e-mail, phone)

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Dealing with Complaints

Let customer explain without getting defensive

Maintain positive attitude and listen Do not offer excuses or alibis Apologize and explain what happened (in

person is best) Remedy problem/make it right Remember customer perception is key

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McDonald’s ten commandments for customer treatment

1. The Customer is the most important person in our business.

2. The Customer is not dependent on us – we are dependent on the customer.

3. The Customer is not an interruption of our work; but the purpose of it.

4. The Customer does us an honor when calling on us. We are not doing the customer a favor by serving him/her.

5. The Customer is part of our business, not an outsider. The Customer is our guest.

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McDonald’s ten commandments for customer treatment

6. The Customer is not a cold statistic, but flesh and blood: a human with feelings and emotions like our own.

7. The Customer is not someone to argue with or match wits with.

8. The Customer is one who brings us his/her wants. Our job is to fill them.

9. The Customer is deserving of the most courteous and attentive treatment we can provide.

10. The Customer has the right to expect an employee to present a neat, clean appearance.

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Perdue Policy If a Customer Complains

The customer:1. Is mailed a letter of apology

2. Is asked to fill out a questionnaire with regard to the problem

3. Is called by a corporate VP

4. Is given a coupon for a FREE chicken

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“Putting the Service-Profit Chain to Work”

A 5% increase in customer loyalty can boost profits by 25% to 85%

Some companies (e.g. Xerox) have found very satisfied customers are 6 times more likely to repurchase with the company than satisfied ones.

Lifetime revenue streams can be:$8,000 from a loyal pizza eater$332,000 from a loyal Cadillac buyer$ billions from a repeat aircraft purchaser

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The Service-Profit Chain

Company profitability

Company loyalty

Customer satisfaction

Value & service

Employee productivity

Employee satisfaction(Source: HBR,

March-April, 1994)

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Customer Service – Summary Comments

Service is the last step for this sale, but it’s the first step for getting the next sale

Sometimes the best offense is a great defense– Offensive selling pursuing new accounts– Defensive selling providing excellent service to keep

current accounts “Caveat Venditor” “Let the seller beware.” Providing excellent service:

– Can be the most fun part of selling– Can be something that distinguishes your product– Is the one main thing over which you have total control

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Service Quotes

A salesperson should learn this from a sheep farmer: you can shear a sheep many times, but you can skin it only once.

Caveat emptor → let the buyer beware.

Caveat venditor → let the seller beware.

Delivery is more than unloading the truck. It’s carrying through on your promises. (Personal Selling Power, ’92)

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Service Quotes

No sale is ever final. (Jim Reichart)

Well done is better than well said. (Ben Franklin)

There are no traffic jams if you go the ‘extra mile’. (Jim Cathcart)

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Service Quotes

If you don’t have repeat business, soon you won’t have any business.

All discontent is relative to expectations.

Promise a lot, deliver more.

Undersell, over deliver.