1. Chapter 14 Building Long-Term Partnerships
(Note: Continuation of five stages of relationships from Chapter 13)

2. Stages Of A Partnership (Introduced in Chapter 13)
Awareness
Exploration
Expansion
Commitment
Dissolution

3. Exploration Set The Right Expectations
Be aware of each others expectations
Long-term relationships are built by making an honest presentation of the product’s capabilities and eliminating misconceptions prior to placing the order
Monitor Order Processing
The salesperson is responsible for delivering on time
Electronic data interchange (EDI)- computer-to-computer linkages between suppliers and buyers for information sharing about sales, production, shipment, and receipt of products
Critical step in developing a partnership

4. Exploration
Internet of Things – the ability of devices and machines to talk to each other
IOT is used by bars to monitor kegs of beer!
CRM – Customer Relationship Management is very helpful in any number of ways to secure and maintain strong relationships

5. Continued Ensure Proper Initial Use Of The Product Or Service
Salespeople should help customers understand how to use the product and realize the full potential benefits
Customer service departments should be installed
Follow Up
After a sale, a thank you or a check up should take place
Salespeople should regularly follow up accounts to stay in touch with any changing needs or possible problems
Follow-ups help promote opportunities for securing references

6. Continued Make Personal Visits
One of the most expensive forms of follow-ups
Can be extremely productive
Personal settings often stimulate trust
Telephone
Efficient means of two-way communication
Mail
Form letters or thank-you cards are encouraging
Image of dependability and customer oriented

7. Continued Handle Customer Complaints – (See Exhibit 14.2 – P. 377)
Critical to developing goodwill and maintaining partnerships
Set a clear understanding of product expectations
Disappointment comes from (1) the product performing poorly (2) being used improperly (3) terms of the sales contract not being met

9. Continued Openly accept customer problems and offer possible solutions
Encourage The Buyer To Tell Their Story
Openly accept customer problems and offer possible solutions
Determine The Facts
Keep an open mind, determine the cause, develop a solution
Offer A Solution
The customer desires quick action and fair treatment and wants to know the reason for the action

11. Continued Questions that affect the action to be taken: (P.379)
What is the dollar value of the claim?
How often has this customer made complaints?
How will the action taken affect other customers?
The solution must be clear
Follow Through With Action
Helps re-illustrate the company’s customer satisfaction image
Always try to be prompt and keep the customer informed of the actions taking place – (see p. 375)

12. Achieve Customer Satisfaction
Monitor customer satisfaction and perceptions, some buyers may be hesitant to voice their concerns
Customer satisfaction is the most important reason for reordering at this stage in the relationship

13. Expansion Generating Repeat Orders
Selling opportunities increase with higher levels of trust
Generating Repeat Orders
Be Present At Buying Time
Know how often and when the company makes decisions
Catalogs and specialty advertising items help keep the seller present in the buyer’s mind
Help To Service The Product
Increase customer satisfaction through routine maintenance and repairs
Up-to-date service manuals and service mailing lists provide the buyer with extra support

14. Continued Provide Expert Guidance
Salesperson usually prospers only if the buyer prospers
Many firms have developed a team approach to provide guidance and suggestions
Provide Special Assistance
Salespeople are in a unique position to offer many types of assistance to the buyer
Services above and beyond are always memorable

15. Upgrading, Full-Line & Cross-Selling
Upgrading (also called up-selling)
Definition: convincing the customer to use a higher-quality product or a newer product
Emphasize during the needs identification phase that the initial decision was a good one, but needs or technology have changed and the newer product fits the customer’s requirements better
Full-Line Selling
Definition: selling the entire line of associated products
Help the buyer realize the synergy of owning or carrying all of the products in that line

16. Cross-Selling
Definition: similar to full-line selling except the additional products sold are not directly associated with the initial products
Special training is necessary, but trust is already established so it shouldn’t be as difficult as selling to a new customer

18. Commitment
There is a stated or implied pledge to continue the relationship
Preferred supplier- supplier is assured of a large percentage of the buyer’s business and will get the first opportunity to earn new business
- Preferred suppliers can be distributors or manufacturers (P.385)
The expansion stage continues during the commitment stage

19. Commitment Example – Types of relationships with suppliers –
DaimlerChrysler
*Solo exchange - once
*Coordinative – Annual Contract
*Selective partnership - integrated
*Strategic partnership - alliances

20. Commitment
Note that all of the following continue to take place during the commitment phase:
*Upgrading
*Full line selling
*Cross-selling
*Handling complaints

21. Securing Commitment To A Partnership
Commitment Must Be Complete
Devote the resources necessary to satisfy the customer’s needs and also anticipate needs
All employees must be empowered to handle the needs of the customer

22. Commitment Communication
Actively seek to communicate during times other than selling or solving a problem
It is important to encourage direct communication between similar functional areas
Corporate Culture
Definition: the values and beliefs held by senior management
Culture shapes the attitudes and actions of employees and influences the development of policies and programs
Some type of fit must occur between a buyer’s and seller’s cultures
Difficulties may occur between international partners

23. Continued The Salesperson As Change Agent
Definition: a cause of change in the organization
Often requires change in both the buying and selling organizations
Two critical elements to consider about change:
Rate of change- how quickly the change is made
Scope of change- the degree to which the change affects the organization

24. Commitment
Champions
Definition: (advocates or internal salespeople) work for the buying firm in the areas most affected by the proposed change and work with the salesperson to make the proposal successful
They help persuade the firm to change, but also help implement the change once the decision is made
A keen knowledge of the product is important
Positioning The Change
Salesperson examines needs and wants of various constituencies and positions the change for the greatest likelihood of success
Positioning a change may determine who is involved in a decision

25. Commitment Determining The Necessary Resources
Customer needs might be beyond the salesperson’s expertise
Expert advice may be needed from various departments
Assess the situation and determine what resources are needed to secure the buyer’s commitment
Developing A Time-Based Strategy
Set a strategy for the proposed change and formulate a strategy against a time line
-the strategy is an outline of planned sales calls, with call objectives
-the time line gives estimates on when each call should occur

26. Causes Of Dissolution Limited Personal Relationships
Develop multiple relationships within an account
Different champions can be selected for each proposal
Failing To Monitor Competitor Actions
There will always be times where an account is vulnerable to competitors
Changes in personnel, direction, and divisions
Monitor competition at all times
Analyze benefits of competitors, product offerings, and selling strategies

27. Dissolution Failing To Monitor The Industry Falling Into Complacency
Missed opportunities due to change
Falling Into Complacency
Definition: assuming that the business is yours and will always be yours
Important to perform at the same level as what was provided initially

28. Dissolution Conflict Occurs for different reasons, such as:
*Conflicting organizational policies
*Conflict between customer’s departments
*Poor purchasing policies – can help with this – takes skills – bring in own people

29. Avoiding Conflict Start with a clean product description
Define authority roles, e.g. change orders
Realize small unresolved complaints can lead to the loss of a HUGE client. See textbook – P. 398
Consider using CRM software to track complaints, e.g. NetSuite or Microsoft Dynamics

30. Resolving Conflict Seven Steps – P. 390
Acknowledge loss of trust
Take responsibility
Gain support – save face, gain agreement
Put bad experience in context of whole relationship
Shift focus from blame to solutions
Implement solution
Move on!

31. Questions?