Direct Professional Services

Increasing Sales Through Developing Customer Loyalty

““Service Sells”Service Sells”

David P. Scurlockcopyright 2011

D.P.S. Inc. David P. ScurlockDavid P. Scurlock

25 plus years of experience in sales/service related industries.*Corporate business units, independent dealers, field based operations, industry associations.

*Business to business and business to consumer sales and customers interactions.

Industries include office products/automation, graphic arts, water treatment, in home service providers, supply chain and delivery operations.

D.P.S. Inc. David P. ScurlockDavid P. Scurlock

Sales success was directly related to service experience customer had. Service experience was key in developing continuing business relationships. (additional products/services or references.

Extensive experience in Learning and Organizational Development.– Sales and Product Training– Supervisory, Management, Leadership Development– Internationally recognized certifications

D.P.S. Inc.

Why is a focus on service support important? Market Pressures

Products are homogenous

Technology is leveling the playing field

Lots of information available

Customer service is the difference and a link to loyalty.

D.P.S. Inc.

Why is a focus on service support important? Market Pressures

Customers are expecting faster resolution times.

Shrinking product-based profit margins are spurring the need for service-based revenue growth.

Customer service has become a competitive trump card.

D.P.S. Inc.

U.S. Office of Consumer U.S. Office of Consumer Affairs Findings Affairs Findings – The Business Metrics

For every unsatisfied customer who complains, 26 other unhappy customers say nothing. And of those 26, 24 won’t come back!

Each customer that experiences a problem will tell 9 or 10 people about it.– Social media has increased the impact of this!

D.P.S. Inc.

U.S. Office of Consumer U.S. Office of Consumer Affairs Findings - Affairs Findings - The Business Metrics

Of the customers who register a complaint, between 54 and 70 percent will do business again with the organization if their complaints are resolved. That figure goes up to a staggering 95 percent if customers feel that complaints are resolved quickly!

Service personal/technicians are on the front line to address these opportunities.

D.P.S. Inc. Focus on Customer Loyalty

Customer satisfaction alone won’t do!

Customer satisfaction does not equal customer loyalty!

D.P.S. Inc.

The Loyalty Effect*

Central gauge that integratesall dimensions of business and measures how well company is creating value for

it’s customers.

* Fred Recheld The Ultimate Question

D.P.S. Inc.True Customer Loyalty

Customer Loyalty measures the emotional attachment

that a customer has with your product/service/organization.

That attachment is created throughrelationships developed by your employees.

D.P.S. Inc.True Customer Loyalty

Competitive Advantage

Employee Morale

Unexpected gains in– Productivity– Growth– Reduced cost– Profitabilty

D.P.S. Inc.The Value Proposition

Developing customer loyalty in today’s competitivemarkets has tangible financial benefits to the business.

In a study conducted by the Aberdeen Group a researchfirm 61% of companies polled said that field service is astrategic operation with revenue and profit goals.

A well trained and managed service group can generate revenue and bottom line profits to the organization.

D.P.S. Inc.The Value Proposition

Developing customer loyalty in today’s competitivemarkets has tangible financial benefits to the business.

In a study conducted by the Aberdeen Group a researchfirm 61% of companies polled said that field service is astrategic operation with revenue and profit goals.

A well trained and managed service group can generate revenue and bottom line profits to the organization.

D.P.S. Inc.The Value Proposition

Keeping 2% of existing customers impacts profits the same as reducing cost by 10%!

Keeping 5% of existing customers can increase profits 25% to 125%!!!

61% of companies polled by the Aberdeen Group said that field service is a strategic operation with revenue and profit goals.

D.P.S. Inc.Activity One – Core Services

Core services are the fundamental products and services that your organization or work teams provide to your customers.

The reason you are in business.

D.P.S. Inc.

Questions to answer about your customer base

What do they want?

What do they like about your offer?

What can be improved?

Why do they go to the competitor?

D.P.S. Inc.What Customers Expect

ProcessExecution

– Predictable– Repeatable

Empower them with information

First Time Resolutions

D.P.S. Inc.Satisfaction – Dissatisfaction Model

Zone of Indifference

Satisfaction High

Customer Loyaltyexist in this area

Dissatisfaction

High

Service providers need to understand how to move customers to a level of high satisfaction

D.P.S. Inc.

Deepen the relationship with Deepen the relationship with customerscustomers

Satisfaction LoyaltyExpectedPrice drivenShort term

Over timeNon-financialNon-tangibleOne experience can “make or break”

D.P.S. Inc.

20

Developing Customer Loyalty

Moving a customer to a high degree of satisfaction from the zone of indifference.

Customer loyalty has to be built on an individual basis one customer at a time.

At each “moment of truth” customers compare/contrast their perception to what actually happen.

D.P.S. Inc. Developing Customer LoyaltyDeveloping Customer Loyalty

Expectations Perceptions

Fail

Disappointed

Meet

Exceed

Greatly Exceed

F

D

C

B

A

D.P.S. Inc.Developing Customer LoyaltyDeveloping Customer Loyalty

If the customers perceptions exceed their expectations customers are highly satisfied and develop loyalty.

If their perceptions are about equal the customers are neither satisfied or dissatisfied. They are somewhere in the zone of indifference.

If their perceptions are below expectations customers move to a degree of dissatisfaction resulting in disloyalty.

D.P.S. Inc.

Influencing Customer Influencing Customer Satisfaction/LoyaltySatisfaction/Loyalty

Customer satisfaction can be influenced in

four ways.

1. Influence the customers expectations.

2. Influence the perceptions of your service.

3. Influence what customers actually receive.

4. Concentrate efforts on improving those things that customers really care about.

D.P.S. Inc. Where are you today?Where are you today?

Do you know what your customers think of your company?– The level and quality of service.

– Their interactions with your employees.

Do you know what other needs or interest a customer may have?

What do your employees think???

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Activity Two Customer Service Assessment

Fifteen question assessment for managers, employees and key customers to complete to assess the perception provided by your organization.

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Activity Three-Moments of Truth Exercise

Moments of truth are the contact or touch points that your customers come in contact with some aspect of your business.

This activity has you and your employees identify those moments of truth for your customers.

D.P.S. Inc.

Questions for the service and Questions for the service and support groups.support groups.

Do you feel it is your job to sell additional product and services?

Why or Why not?

WWhat you can do?

HHow to accomplish.

Direct Professional Services

Training the Service/Support Personnel

to Sell!

copyright 2011

D.P.S. Inc.

Business value of service/support staff Business value of service/support staff selling.selling.

Increase the opportunity for customer referrals, references, and additional business as a result of the interactions between the service technicians, service providers and their customers.

Provide an outline of the steps that can be used by service providers to enhance their skills in communicating and interacting with their customers.

D.P.S. Inc.

Business value of service/support Business value of service/support staff selling additional products staff selling additional products and servicesand services

Enhance the perception of your brand in the eyes of the customers during the service interaction.

Margins (post sale)– 30% to 200% greater than product margins– 25% of total revenue– 50% of operating profits

D.P.S. Inc. Time/Tension RelationshipTime/Tension Relationship

Recognize the relationship between relationship tension and task or new opportunity tension that exist during a service call.

Recognize how these tensions change over time.

Reduce the relationship tension in a way that maximizes the opportunity for new business.

Service Providers should understand to:

D.P.S. Inc. Time/Tension ModelTime/Tension Model

Relationship

Time

Ten

sion

Before Service Call

After service is completedNew Opportunity

or T

ask

D.P.S. Inc.

Benefits of service and Support personal selling additional products and services

Increased customer satisfaction as a result of the quality and completeness of service performed.

Increased opportunities for additional business, referrals, and references, as a result of increased customer loyalty that has been establish.

All of these benefits/values are interrelated which lead to increase sales and revenues for the organization.

D.P.S. Inc.

Customer Communications Customer Communications DefinedDefined

Interaction between service technicians, service providers and customers.

Dialog with customers prior to performing service.

Dialog with customers during service calls (when possible and necessary).

Dialog with customers after completion of service.

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Effective Customer Effective Customer CommunicationCommunication

Fundamentals of the consultative communication process with customers.

How to decrease the customer’s relationship tension while increasing their task tension.

How to move customers from the “zone of indifference” to a level of high satisfaction.

Service providers should understand :

D.P.S. Inc.Hard Core Sales Techniques

True selling doesn’t start until someone objects to something.

Ask for the sale at least three times.

Don’t take no for an answer.

D.P.S. Inc. Sales Truths People don’t want to be sold they want to make

informed buying decisions.

People buy the solutions or benefits not the technical features of the product.

The cheapest price is not the number one reason people make buying decisions.– Convenience

– Peace of mind

– Function or performance

– Value for the dollars spent

D.P.S. Inc.

Positive Sales Environment from a Service Perspective

Need Exist - Product not working

Desire to Address Need – They have called you.

Emotional State – Customer may be upset, highly upset, or happy to see you.

Accepts Solutions that resolves need.

Creditability- customers trust technicians and will listen to recommendations.

D.P.S. Inc.

Creating A Positive Sales Environment

Starts with first contact with customer when they call or come in.

Remember what the customer expects (slide 17)

Has the first point of contact been trained in the same concepts being discussed here?

Are employee’s communicating customer information and expectations correctly between themselves?

D.P.S. Inc.

Creating A Positive Sales Environment

Acknowledge the emotional state that the customer is in.

You didn’t cause it but you take the impact!– Don’t take it personally– Listen let them vent

You can diffuse the situation or ignite it by what you do or don’t say.

D.P.S. Inc.

The Consultative Sales Recommendation

Establish rapport– Introduce yourself– Use their name– Respect their property

Take Action– Confirm the repair (let them explain the situation even if

you know what the problem is)– Complete service (explain what you did and demonstrate

that product is performing and answer any questions customer may have)

Make recommendation for additional product or service that will benefit the customer.

D.P.S. Inc.

PROTEC*PROTEC*

Place yourself in the other’s shoe (show empathy)

Receive information (active listening skills)

Openly communicate (effective questions)

Take action (perform service)

Educate (recommend additional product/service)

Close the call (thank customer for their business)

The key elements and steps associated with providing a positive interaction with customers

Copyright 2012 David P Scurlock

D.P.S. Inc.Empathy vs. Sympathy

Empathy - Can understand how a person feels, places yourself in their shoes. Don’t necessarily agree with person but you recognize it.

Sympathy – Experiencing the same emotion feeling that the other person is experiencing.

Have empathy vs. sympathy in customer situations.

D.P.S. Inc.Receiving Information

Listening Skills– Pivotal communication skill– Key to internal communications between

employees.– Key to developing emotional connection

between front-line employees and customers.

D.P.S. Inc.Active Listening Skills

Hearing vs. Listening Start with empathy (other’s shoes) Do not react or take personally when the other person

is expressing their feelings and emotions. Listen for the key message that person is sending or

expressing. Restate in your own words what the other person has

stated. Confirm that the other person agrees with your

understanding.

D.P.S. Inc.Openly Communicate

After listening to customer restate in your words what you heard and understand.

If necessary ask additional questions

Explain what you are going to do.

D.P.S. Inc.Take Action

Complete the repair or service originally called for in a professional manner.

Determine what additional offers you can make. – Review records that you have

• Other product that may require maintenance.

• Check up’s that you might perform while there.

• Products that will improve the performance or life of the equipment.

D.P.S. Inc. Educate the Customer

Explain to customer what else you can offer them during your visit.– Use any visuals or job aids that you may have. (many times you

can provide these to customer while you are completing repair. It keeps them occupied while you are working)

Wait for them to respond (many times they will have a question or statement)

– Respond to their question.• (many of my other customer’s have taken advantage of ………… and found

……………..

– If they say “no” thank them for the business they have given us. Leave any information that will allow them to make decision in future.

D.P.S. Inc.Close the call

Thank the customer for the opportunity to provide service /support for them.

D.P.S. Inc.

Steps to New Business Steps to New Business DevelopmentDevelopment

Determine what products and services that you have availability to sell.– Outline the major features and advantages of

the products and services– Outline the major customer benefits.– Place on a reference sheet to refer to and to

share with a customer.

D.P.S. Inc.

Steps to New Business Steps to New Business DevelopmentDevelopment

Determine the target market and customers that you want to develop new business from.– Additional products or services to existing

customers– New leads or referrals from current customers– Offer an incentive to customers.– Develop a marketing or awareness plan.

D.P.S. Inc.

Steps to New Business Steps to New Business DevelopmentDevelopment

Determine incentive for service technicians– Cash

– Points that can be converted for prizes or gifts

Determine how process will work.– Bring referrals back to office

– Close on the spot

Have a meeting to review all aspects of program.– Include sales, operations and admin in meeting.

D.P.S. Inc.

Activity Four – New Business Development Worksheet

Exercise to develop a marketing strategy or customer awareness program.

Identify the features, advantages and customer benefits of each or your products and services.

Direct Professional Services

When Things Go Wrong !When Things Go Wrong !

copyright 2011

Service RecoveryService Recovery

D.P.S. Inc.

Service Recovery as a Service Recovery as a Business OpportunityBusiness Opportunity

Service Recovery- returning an upset customer to a satisfied state and better yet to a very satisfied state.(high degree of loyalty)

Create a situation that leads to additional business, referrals or references.

D.P.S. Inc.Service Recovery

Listen to the concerns of the customer

Listen to what the customer wants.

Make it easy for the customer to resolve their concern.

One size solution doesn’t fits all

D.P.S. Inc.

The Four Steps of The Four Steps of Service RecoveryService Recovery

Apologize sincerely- don’t become defensive or make excuses. Show empathy.

Fix the problem- Listen, empathize, and ask open-ended questions that allow the customer to express what they really want. Act quickly with a sense of urgency

D.P.S. Inc.

The Four Steps of The Four Steps of Service RecoveryService Recovery

Do something extra as atonement- does not have to be expensive or elaborate. Show the customer that you appreciate their business, you’re sorry for what happen, and you want to add value to the relationship.

Follow up- A call from management or the service person to ensure that the customer is satisfied.

D.P.S. Inc.

Exercise Five- Exercise Five- Service Recovery Service Recovery

What was a recent customer service situation that you (your company) faced?

Was it the results or the process that the customer was upset with?

How was it resolved? Was a process put in place for future situations? (planned recovery)

Direct Professional Services

Process to Implement a Process to Implement a Training Program.Training Program.

copyright 2011

D.P.S. Inc.Process

Start with business focused metrics– Additional sales or services– Increase first time resolutions– New business

– Conduct assessment of current skills of employees.

– Identify skill gaps and training opportunities

D.P.S. Inc.Process

Provide training in manageable ‘bytes”

Just-in-time vs. Just-in-Case

Create real world environments/situations

Measure short term results

Celebrate successes!!!

Reinforce in the field.

D.P.S. Inc. Good Luck and Thank YouGood Luck and Thank You

David P. Scurlock847-340-3874

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