Chapter 14 Service After the Sale Learning Objectives: Examine the purpose of total customer service. Determine what constitutes service quality. Know when and how to service. Understand your role in servicing. Appreciate how to upgrade and cross-sell current customers. Develop a systematic plan for follow-up activities.

Building Partnerships with Customer Service You first create a customer—and then keep that customer! You establish a basis for a long-term relationship. You become part of the customer’s team. You will gain lifelong clients and get referrals along the way.

Quotable Quotes “A lot of people have fancy things to say about customer service, including me, but it’s just a day-in, day-out, ongoing, never-ending, unremitting, persevering, compassionate type of activity.” - Leon Gorman, L.L. Bean

Second-Mile Action Service Quality Moments of Truth Can be a strategy to acquire and maintain customers Don’t talk customer service, live perfect service Inform customers of what to expect Exceed their expectations Moments of Truth Each time a customer comes in contact with an employee, a moment of truth occurs At each such moment, customers become aware of your service quality

Service Techniques That Support Relationships Value Added Everything the salesperson does during and after the sale provides added value Means going above and beyond what is merely expected of you Warranty and repairs are part of what is sold In the automotive industry, a brand-loyal customer represents an average of $300,000 to the dealer.

Get More From Current Customers Upgrading or Up-selling: the process of persuading a customer to purchase a better-quality or a newer version of the product. You want to sell to the real needs of the prospect. Professional salespeople don’t sell products… THEY SELL RESULTS.

Get More From Current Customers Cross-selling: the process of selling products that are not directly related to the primary products being sold. An example: Gus walks into his bank to discuss a loan with the loan officer and casually mentions the expense of keeping his daughter in a private school. Days later that loan officer sends a note to Gus discussing how a limited trust fund could help with college tuition. The loan officer is cross-selling.

Service in Response to Needs Service the long-standing accounts as well as your new ones Anticipate complaints and intercept them Types of problems a salesperson should solve before they become serious: Product is not functioning properly Personnel cannot operate the equipment efficiently Not getting replacement parts quick enough

Service in Response to Needs Technical Assistance Research Programs, Inc (TARP) found: Only 4% of unhappy customers actually complain. Even some with serious problems 54% to 70% of complainers will give repeat business if the complaint is resolved 95% of complainers will give repeat business if the complaint is resolved quickly Dissatisfied customers will tell at least 9 or 10 other people. 13% tell more than 20 people Satisfied customers will tell about 5 people

Retaining Existing Customers Service after the sale is critical to retaining your customer base In technical sales, up to 50% of the sale involves the follow-through stage of the sales cycle A bad customer service experience will have lingering, negative consequences. Make sure that does not happen! There is no substitute for asking your customers how they feel about the customer service they receive

Win Back Angry Customers Excuses salespeople give for losing accounts: If it isn’t the price, then it’s because the competition uses unfair tactics. My company fails to back me up; delivery is late or quality deteriorates. That customer is just too difficult for anyone to get along with. The customer never cares about anything but price, so I was helpless. I just don’t have time to make all the service calls I’d like to make.

Win Back Angry Customers Listen Carefully and Politely Give angry customers time to blow off some steam

Win Back Angry Customers Ask the Tough Questions: Do I get angry when you place a small order? Do I stay away too long between calls? Do I keep customers informed? Do I keep all my commitments? Was our service ineffective? Can I help you in any way in order to win back your business?

Win Back Angry Customers Reasons why you may lose the account: Something the salesperson does Something the salesperson fails to do Something the company does Something the company fails to do

A Systematic Plan for Follow-up Stay Informed The sale is not complete until the customer is satisfied Don’t simply “pass the buck” to a service representative Keep up-to-date on personnel changes in your customer’s company by making frequent visits Remember, gaining a new customer costs FIVE TIMES more than keeping a current one.

A Systematic Plan for Follow-up Make Phone Calls Even with all of today’s electronically-based communication, a phone call is still a salesperson’s best tool Customers will respond positively to the time you take to follow up with them Phone calls save time when you can’t fit in a personal visit Take advantage of customers’ social networking pages by reaching out through LinkedIn, Facebook, or Twitter

A Systematic Plan for Follow-up Determine Contact Frequency Develop a system for contacting customers Rate your accounts as A, B, or C, much like you rate your prospects Decide what form of communication to use each time. Send Mail (Email, Letter, or Card) When your customer has no specific need, stay in his mind by sending: Direct mail pieces Your company’s in-house newsletter Information about new products via Facebook, Twitter, or email A birthday card or holiday card