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CHAPTER 14
Service and Follow-up for Customer Retention
LECTURE OUTLINE
I. THE GOLDEN RULE: SERVICE
II. THE IMPORTANCE OF SERVICE AND FOLLOW-UP
A. A salesperson helps customers through follow-up by maintaining
contact with a customer (or prospect) in order to evaluate the
customer.
B. Words of sales wisdom: Caring for people is the beginning of wise
C. Sales proverbs:
1. Customer choice between suppliers has never been
greater.
2. You lose “X” percent of sales or customers per year.
how much you care.
one you know.
your customers.
7. For some types of selling, customer referrals are the best
new customers.
9. The cost of acquiring a new customer is much higher than
D. Knowledge versus wisdom.
knowledge is useless.
E. Wisdom is learned.
1. We must trust and honor people.
2. We must realize that our purpose is to help people.
avoid moral pitfalls.
III. TRUE CARING BUILDS RELATIONSHIPS AND SALES
A. What is the purpose of the sales call?
1. Analyze the customer’s needs.
2. Present product benefit.
B. Caring is seen. Caring about the customer is more than simply
C. Caring is hard to do! This is why people notice when the seller
cares.
IV. BUILDING A LONG-TERM BUSINESS FRIENDSHIP
A. Business friendship - the relationship formed between a
B. Build a business relationship in much the same way you build
1. Level 1 - Acquaintances - people whose names you know,
2. Level 2 - Friends - people whom we spend more time with
3. Level 3 - Intimate friends - often called “best friends,”
C. Several things happen between people before they become
friends.
herself.
2. Acknowledgement - everyone has a desire to be heard,
a. Step 1 - Repeat back - repeat what your client tells
you in a summarized fashion.
their perceived problems.
3. Attending - pay attention, or attend to your client. Use
4. Talking - the foundation of any good relationship is good
and reaJrmed to avoid confusion.
E. Avoid control and one-ups. Do not try to control your client, and
F. Do you pressure a true friend? To have a lasting, wonderful
ruin.”
V. RELATIONSHIP MARKETING AND CUSTOMER RETENTION
A. Three levels of customer relationship marketing:
1. Transaction selling - a customer is sold and not contacted
again.
B. Relationship marketing builds friendships.
1. Relationship marketing - the creation of customer loyalty
2. An organization using relationship marketing is not
VI. THE PRODUCT AND ITS SERVICE COMPONENT
A. A person buying a product is buying a bundle of tangible and
B. Buyers have expectations of what an organization should deliver:
1. Product - the product purchased has no defects.
3. Place - the product is available when and where needed
and promised.
4. Promotion - correct, honest information and
5. Exchange transaction - handled correctly, quickly and
6. After the sale - warranty honored, repairs or exchanges
representative available to discuss how to put together,
customer.
D. Service quality is a customer’s perception of how well service
provided by a seller meets their expectations.
VII. CUSTOMER SATISFACTION AND RETENTION
A. Customer satisfaction - a customer’s feelings toward a purchase.
B. Continued customer satisfaction leads to customer retention
VIII. EXCELLENT CUSTOMER SERVICE AND SATISFACTION REQUIRES
IX. SO, HOW DOES SERVICE INCREASE YOUR SALES? -
X. ACCOUNT PENETRATION IS A SECRET TO SUCCESS
A. Account penetration - the ability to work and contact people
throughout the account discussing your products.
B. Penetration can be determined by:
with various people in the account.
4. Your reputation as the authority on your type of
C. General rule - the greater your account penetration the greater
XI. SERVICE CAN KEEP YOUR CUSTOMERS
A. First: concentrate on improving account penetration.
B. Second: contact new accounts on a frequent and regular
C. Third: handle your customer’s complaints promptly.
problem arises.
2. Mail your prospect interesting clippings.
3. Write congratulatory notes.
XII. YOU LOSE A CUSTOMER - KEEP ON TRUCKING! - Four things can be
done to win back a customer:
A. Visit and investigate.
B. Be professional.
XIII. INCREASING YOUR CUSTOMERS’ SALES
A. Two methods:
1. Have current customers buy more of a product than they
are currently using.
2. Have current customers buy the same products to use for
a different purpose.
B. To increase sales:
Step 1: Develop an account penetration program.
Step 2: Examine your distribution.
Step 3: Keep merchandise in the warehouse on a shelf.
examine the merchandise carefully.
XV. HANDLE COMPLAINTS FAIRLY - Customers may be dissatistied with
products for a number of reasons.
A. The product delivered is a different size, color, or model than the
one ordered.
the customer believed it would.
F. The product is not of the specified grade or quality.
XVI. IS THE CUSTOMER ALWAYS RIGHT?
A. Some academics believe the answer is “yes,” but what if the
customer asks you to do something unethical or illegal?
problem solving.
1. Obtain as much relevant information from your customer
as possible.
purchased the merchandise.
C. Dress in your armor; be prepared to meet a dishonest customer.
XVII. BUILD A PROFESSIONAL REPUTATION - Eight considerations:
A. Be truthful, and follow through on what you tell your customer.
D. Keep customer information con*dential; maintain a professional
high-pressure techniques.
F. Be active in community a2airs by helping to better your
G. Think of yourself as a professional, and always act as a
A. Most important traits are:
1. Willingness to “go to bat” for the buyer within the
2. Thoroughness and follow-through after the sale.
posted.”
5. Imagination in applying one’s products to the buyer’s
needs.
6. Knowledge of the buyer’s product line.
7. Preparation for sales calls.
B. “Seven Deadly Sins of Business Selling” are:
1. Lack of product knowledge.
2. Time-wasting.
3. Poor planning.
XIX THE PATH TO SALES SUCCESS: SEEK, KNOCK, ASK, SERVE
A. Seek customers to serve and you will *nd them.
B. Knock and people will open their doors.
E. Selling requires:
1. Faith
