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Chapter Nine—Expanding Customer
Relationships
Learning Outcomes
After completing this chapter, you should be able to:
1. explain how to follow up to assess customer satisfaction.
2. explain how to harness technology to enhance follow-up and buyer-seller relationships.
3. discuss how to take action to ensure customer satisfaction.
4. discuss how to expand collaborative involvement.
5. explain how to add value and enhance mutual opportunities.
Chapter Outline
I. Introduction
II. Assess Customer Satisfaction
III. Harness Technology to Enhance Follow-Up and Buyer-Seller Relationships
IV. Ensure Customer Satisfaction
A. Remember the Customer after the Sale
B. Expedite Orders and Monitor Installation
C. Training Customer Personnel
D. Correct Billing Errors
E. Resolve Complaints and Encourage Critical Encounters
F. A Procedure to Handle Complaints
G. Build the Relationship to the Point that Your Customers Are Comfortable Complaining
H. Listen Carefully and Get the Whole Story
I. Ask Customers How They Would Like Their Complaint Resolved
J. Gain Agreement on a Solution
K. Take Action—Educate the Customer
L. Follow Through on All Promises—Add Value
V. Expand Collaborative Involvement
VI. Work to Add Value and Enhance Mutual Opportunities
A. Provide Quality Customer Service
B. Customer Expectations
C. Develop a Service Strategy
D. Customer Service Dimensions
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Exercises
Developing Professional Selling Knowledge
1. How can a salesperson convert new customers into highly committed customers for life?
Customers become committed for life only after the salesperson has proven himself or
2. Why should a salesperson follow up to assess customer satisfaction?
Salespeople should follow up to assess customer satisfaction to ensure the customer’s
3. Explain why relationship-enhancement activities are important.
Relationship-enhancement activities are important to the growth and development of long-
4. What does a salesperson hope to accomplish by providing his or her customers with useful
information after the sale?
Providing customers with useful information after the sale is another way for salespeople
5. Most salespeople are not trained in how to install their products. Why then should a good
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salesperson make it a point to oversee the installation process?
Most salespeople are not trained in how to install their products, and most installers are not
6. Why is it important for a salesperson to ask a buyer what he or she wants the salesperson to
do when resolving the complaint?
While addressing customer’s complaints, the goal of the salesperson should be to resolve
7. Why should a salesperson encourage his or her customers to complain? Isn’t this just
asking for trouble?
Salespeople should encourage their customers to complain so that they may be aware of
8. Why is it important for a salesperson to gain agreement on a solution when dealing with a
customer complaint?
In the process of gaining agreement, the salesperson should be clear about what he or she
9. Why do many salespeople seem to ignore after-sale activities that enhance the
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relationship?
Many salespeople seem to ignore after-sale activities that enhance the relationship because
10. Why is it important for a salesperson to establish expectations with a new customer?
It is important for salespeople to establish accurate expectations with new customers in
Group Activity
Divide the students by major and then into groups of three to five.
Each group is to assume it has been hired by the university’s placement office (career services).
The group’s job is to assess and maintain existing relationships with companies that are
registered (and recruiting on campus). Focusing on their own major area, each group should
develop a strategy for following up to ensure satisfaction among recruiters. Next, they should
identify probable areas of dissatisfaction and a plan for dealing with customers (recruiters)
expressing those dissatisfactions. Below is a list of possible areas of dissatisfaction.
Dissatisfactions:
• Difficult to register with career services
• Information on registered students is hard to find
• Not enough students are interested in interviewing to make it worth my time to visit
campus
• It’s difficult to get students interested in our company because they know nothing about us
• I get too many resumes with spelling and grammar errors
• Students never send us thank you notes after interviewing
Experiential Exercises
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1. What to Do After Gaining Commitment
Objective: The sales rep has to complete a number of activities once the order has been signed.
Your students will understand what activities must be completed after earning commitment.
Time Required: 15 to 20 minutes.
Teaching Tip: Have students complete this exercise individually or in small groups.
You are a salesperson calling on your school’s purchasing department and the buyer has just
informed you that they have made the buying decision in your favor. What do you do now?
Explain how you will accomplish each of the following:
1. Confirm the customers’ decision: I would speak with the buyer and summarize the
agreement one more time, making sure both parties have accurate expectations. Then, I
would make sure the customer signs the necessary agreement or contract forms.
2. Cement the relationship: I would provide the customer a timeline, so they know when to
expect delivery. I would also provide the customer additional information that assures them
they made the right decision.
3. Monitor installation: I would be on site for the installation and be available to the
customer. I would oversee the installation, answer questions or concerns, and make sure
everything is working for the customer as promised before leaving.
4. Handle complaints with sensitivity: I would follow the complaint resolution process
described in the text. Perhaps the most important part of this process is keeping the lines of
communication open. I would make sure the customer feels comfortable providing me any
feedback that is positive or negative. And I would maintain regular contact with the
customer.
5. Provide information on the care and use of products: I would provide the customer any
pertinent information about the care and use of products prior to or during installation. I
would also work with the customer to ensure he or she understands the information and is
comfortable with caring and using the product.
6. Show appreciation: I would immediately thank the customer and then follow-up with a
letter the next day acknowledging his or her decision.
7. Monitor delivery: I would work with our order fulfillment people to make sure I know the
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progress of the product in the order fulfillment and delivery process. I would keep the
customer updated.
8. Keep your promises: I would make notes (paper or electronic) of all promises I make and
integrate them into a time management system to keep me on track.
9. Respect the customer’s time: I would always make appointments with the customer and
never exceed the agreed upon meeting time duration (unless requested by the customer).
10. Follow-up actions that will cement the relationship between you and your customers: I
would build goodwill by maintaining regular contact and looking for ways to add value. I
would make sure I promptly and satisfactorily resolve customer complaints, and I would
make sure to follow-through on all special requests (where possible and appropriate).
Students’ response to the activities mentioned above will vary.
2. Enhancing Customer Relationships
Objective: Your students will be able to understand that building mutually satisfying
relationships between buyers and sellers is essential for success in sales.
Time Required: 15 to 20 minutes.
Teaching Tip: Have the students complete this exercise individually or in small groups.
To build mutually satisfying relationships between buyers and sellers, professional salespeople
must be competent in accomplishing five ongoing tasks: 1) providing information, 2) reducing
risk, 3) establishing high standards and expectations, 4) anticipating and responding to customer
problems and concerns, and 5) monitoring and improving customer satisfaction. For each of
these, explain what it means and why it is important to building a relationship.
Providing Information: Providing useful information means communicating with the customer
after the sale and keeping him or her updated on the delivery process, the installation process,
and any other pertinent information the customer will find valuable. As time moves on, the
salesperson should keep the customer updated on new capabilities, new technologies, and other
factors affecting the customer’s business. It is important to provide useful information so that the
customer feels good about the purchase decision, trusts the salesperson, and sees value in the
relationship with the salesperson. Further, providing useful information to the customer enhances
the salesperson’s ability to secure referrals from the customer and identify additional
opportunities with the customer.
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Reducing Risk: Buyers assume a degree of risk when they agree to purchase from a salesperson.
The extent of the risk and the buyer’s risk tolerance will impact the purchase decision.
Salespeople need to look for ways to reduce perceived risk before, during, and after the sale.
While this can be accomplished through written documentation (e.g. warranties), it is the
salesperson’s ability to build trust that has a major impact on the perception of risk. The
salesperson’s successful management and resolution of a dissatisfaction, after the sale, can
strengthen the relationship and reduce the buyer’s perception of risk. That is, the buyer knows
the salesperson will satisfactorily address any problems that arise.
Establishing High Standards and Expectations: Salespeople should establish high standards and
consistently meet or exceed customer expectations. Establishing high standards means never
being satisfied with mediocrity and having the personal and professional integrity to ensure the
standards are met. Setting expectations refer to the extent to which the salesperson clearly
communicates to the customer what to expect from the purchase and the relationship. It also
means the salesperson has a clear understanding of what he or she expects from his or her own
performance and performance of his or her products and company. Establishing high standards
and expectations serve to reduce the buyer’s perceived risk and help build trust and strengthen
relationship.
Anticipating and Responding to Customer Problems and Concern. Anticipating and responding
to customer problems and concerns means being aware of the types of concerns that generally
arise. It also means being intuitive enough to sense concerns when communicating with the
buyer. Responding to concerns refers to the salesperson’s ability to effectively manage and
resolve the concern in a timely fashion. Effectively anticipating and responding to customer
problems and concerns is essential in building trust and ultimately, the survivability and
profitability of the relationship.
Monitoring and Improving Customer Satisfaction: Monitoring and improving customer
satisfaction refers to the salesperson’s ability to attend to the customer in a way that allows for
the customer to communicate his or her relative satisfaction with the purchase and the
relationship. Doing so allows salespeople to take care of little problems before they become a
major concern. Further, by ensuring customer satisfaction, salespeople build customer loyalty;
loyal customers are more likely to provide referrals and give positive word-of-mouth. Finally,
monitoring customer satisfaction provides the salesperson feedback on the factors that drive
customer satisfaction and dissatisfaction. This information is useful for future interactions with
current and new customers.
Chapter 9 Case
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Naturally Beautiful, Inc.
Background
Naturally Beautiful, Inc. is a maker and marketer of organic cosmetics. Its cosmetics are
formulated from all-natural organic ingredients. Although the company currently serves
primarily the higher-end market, distributing through upscale department stores and boutiques, it
would like to expand its distribution channels. It is currently developing an organic line to sell
through outlets such as Walgreens, CVC and Wal-Mart. Long-term plans include expanding
internationally, first to Canada and Mexico, and eventually to Western Europe and beyond. Sales
are strong and continue to rise. The company gives much of the credit for its success to its
salesforce, which has done a great job expanding into new outlets while establishing and
maintaining strong customer relationships.
Jill Aunaturale, a nontraditional student, was hired as a sales representative by Naturally
Beautiful out of college approximately ten months ago. Since being hired she has had a good
deal of success, landing several new accounts. In fact, if she can land a few more accounts by the
end of the rapidly approaching fiscal year, she will exceed her quota and achieve a hefty bonus.
Jill is counting on this bonus because she has planned a big family trip and does not want to let
her family down.
Current Situation
Lately, Jill has heard various concerns from several of her customers. For instance, the other day
she received a voice mail from Rick at Beauty Boutique, a recently acquired customer whose
order was incorrect. A few items were missing from the order. Jill figured that shipping must
have inadvertently omitted the items and that Rick could give them a call to get it fixed. She
figured that it was not her fault, Rick still had product to sell and she certainly did not have time
to mess with this. Similarly, she received a text from Kim at Devine’s department store
indicating that an expected delivery was late. Again, Jill figured she could not do anything about
the delivery. She texted Kim to tell her to contact the shipping department at Naturally Beautiful
about the matter. Jill also received a second email from Sarah at Cosmetics Unlimited:
Dear Jill,
A few weeks ago you promised you would return to train our beauty consultants on your newest
product line. Our consultants need to fully understand the benefits of this new product and how it
is to be applied so that they can best serve our customers. As you know, we take great pride in
providing the highest quality products and services to our customer base. We discussed this
when you offered me your line. Although we like your line, if we are unable to offer our
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customers top-shelf service with your brand then we may have to look elsewhere.
Sincerely,
Sarah
Jill recalls telling Sarah that she would conduct training for her sales consultants but has been so
busy working to get new accounts that she put it on the back burner. Jill was not sure that she
could put Sarah off much longer, but felt it would be in her best interest to write her back and
stall her for at least a couple more weeks. By then, she thought, she might have exceeded her
quota.
To Jill, these were but minor customer issues, not even problems. In her opinion, these were
nothing more than “needy” customers. As far as she was concerned, she was delivering a great
product at a great price. Besides, she had more sales to make and nobody was going to help her if
she came up short on providing that great family vacation she promised.
Questions
1. For each of the concerns expressed by Jill’s customers in the case, explain an alternative
means for handling the concern.
For issues related to shipping, the alternative would be placing a tracking and detection
2. What are the potential long-run implications of how Jill is handling her current customers?
The way how Jill is handling her customers might affect her business in the future. She
3. What types of activities can Jill do after acquiring an account to enhance customer value
and ensure long-term customer relationships?
To enhance customer value and ensure long-term customer relationships, Jill should
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Role Play
Situation: Read the Naturally Beautiful, Inc. case
Characters: Jill Aunaturale, sales representative for Naturally Beautiful; Rick, customer at
Beauty Boutique; Kim, customer at Devine’s department store; Sarah, customer at Cosmetics
Unlimited
Scene: Employing a more personal touch, Jill contacts each customer and takes appropriate
action to ensure customer satisfaction. Role play these conversations.
Chapter 9 Role Play
Midwest Live Bait & Tackle, LLC
Background
Midwest Live Bait & Tackle, LLC, located in St. Louis, Missouri, is a regional wholesaler of
live bait and tackle to bait shops and service stations in Missouri, Illinois, Arkansas, Kentucky,
and Tennessee. Known for its high-quality live bait, reasonably priced tackle, and good customer
service, the company has been able to maintain a steady market share over the years. Its five
salespeople have been primarily responsible for selling and servicing the company’s current
accounts. This involves making sure that customers have bait and tackle when needed, assisting
them with merchandising and pricing, and ensuring their complete satisfaction.
Wanting to retire, the owner recently sold the business. The new owner was very ambitious and
had big plans for expanding the company’s market share. He felt that the quickest and most
efficient way to move in that direction was to have his current salespeople actively pursue new
accounts. Thus, he mandated new customer quotas, compensated salespeople for achieving
targeted growth goals and threatened their jobs if minimal new account requirements were not
met.
Current Situation
Dan Chub has been a sales representative for Midwest for over five years. Until the new
ownership, he enjoyed his job very much and made a good living doing it. With his fourth child
on the way, a poor economy, and a tight job market, Dan did not want to jeopardize his position
with the company and reluctantly went along with the new changes. However, he was very
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concerned with how much time prospecting for new business was taking. He felt it may be
endangering his current customer relationships. What follows are excerpts from a recent
conversation with Earl Carp, a very significant customer, especially considering he sold bait and
tackle out of his service station convenience store:
Earl: Dan, I’ve been having some problems recently with the minnows you’ve supplied for me.
Some loss is typical, but lately the loss percentage has increased. What’s going on here?
Dan: I don’t know Earl. None of my other customers are having problems with their minnows.
You’re making sure that you don’t add chlorinated water when replenishing your minnow
holding tanks, aren’t you?
Earl: Of course! I recently refurbished my tanks and added a new oxygen system. Maybe that
has something to do with the increasing loss. Could you check it out and see what you
think?
Dan: Just let me know how many minnows you think you lost and I’ll see what I can do.
Earl: Okay, but since this has been going on for the last couple of weeks I was just hoping you
might be able to give me your thoughts on my new system. By the way, that new line of
fishing poles doesn’t seem to be moving very well. How are they moving for your other
customers?
Dan: I haven’t heard much about those, so I guess they are moving okay.
Earl: Do you have any ideas on how I might improve my merchandising so I can move more of
them? Perhaps my price point is too high. What do you think?
Dan: I’m really busy today Earl. I have several stops yet to make and I need to call on a couple
of new prospects in the area.
Earl: You’re not planning to supply my competition down the street, are you?
Dan: I don’t know Earl. I’ve got to make a living, too, you know.
Earl: Last week you promised to bring by some of those new plastic cricket containers you were
telling me about. Did you bring any of those for me to examine?
Dan: Oh no, those completely slipped my mind.
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Earl: Hmm. Well, certainly you brought me the crayfish you promised me last week. I’ve had
customers coming in every day asking for them. Also, how about those waterdogs we
talked about? I’ve been getting some requests for those.
Dan: I should have told you sooner, but our usual crayfish supplier is having difficulty getting us
as many crayfish as we need. I know you wanted 500 but I think I can give you 100. I
thought we’d have the waterdogs by now, at least that is what I was told. We’re still
waiting.
Earl: Dan, I’m beginning to wonder how much you value my business. If you can’t take care of
me any longer, maybe I need to look for someone who can.
Dan: I’ve been under a lot of pressure lately to get more done in the same amount of time. My
new boss is driving me nuts! I definitely want your business.
Dan needed to hurry off to meet with a new prospect. He didn’t have time to preview some of the
new spinner baits his company was now carrying.
Role Play Activity
Characters: Dan, sales rep; Earl, service station owner
Action: Role play the meeting between Dan and Earl. This time have Dan handle the situation
(i.e., respond) as a sales rep that takes customer complaints seriously and cares about providing
great customer service.
Chapter 9 Continuing Case
The Disgruntled Customer
It was 8:30 A.M. Friday morning when Brenda received the voice mail. It was Susan Swanson,
owner of a small architecture firm, who Brenda had acquired as a customer nearly three months
ago. “I’m finished with you all,” she barked. “Come get my copier, I want my money back! This
blasted machine you sold me keeps jamming. I was billed for extra toner that I never received.
You promised me training, and I have yet to see any. And, this machine is much slower than I
thought it would be. I don’t see how your company stays in business. I knew I should have gone
with Xerox!”
It’s true, Brenda had told Susan that she would provide training on how to use some of the new
advanced features of the copier. She had neglected to get back to Susan and since she had not
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heard from Susan she assumed Susan no longer desired the training. As for the paper jams,
Brenda found this to be unusual. NCC carried high-quality copiers and she could not imagine
what might be wrong. She was sure she had told Susan the specific type of paper to use for her
application. However, using the wrong paper could lead to more frequent paper jams. But why
hadn’t Susan said anything to her about this sooner? As for the extra toner, Brenda recalls that
Susan did order it and later contacted her to let her know that she did not receive it. Brenda then
contacted NCC’s shipping department who said they would ship Susan the product. Brenda just
assumed that it was shipped. As for the speed of the machine, Brenda was certain its output was
per specifications as equipment at NCC must pass strict quality-control measures. Perhaps Susan
simply misunderstood the machine’s capabilities. Wow, Brenda thought, now what am I going to
do?
Questions
1. How should Brenda go about handling this complaint?
Student’s answers will vary. The best strategy that Brenda should adopt for handling this
complaint is to first consult with her supervisor to determine her options. While doing as
2. What could Brenda have done to avoid this incident?
Brenda needed to do several things. First, she needed to make sure that she clearly
understands Susan’s performance needs and make sure Susan clearly understands the
3. What steps can Brenda take to do a better job of maintaining open, two-way
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communication with Susan?
In order to maintain an open, two-way communication, Brenda can develop a system for
4. Assuming that Brenda can retain Susan as a customer, how can she add value to her
relationship with Susan’s firm?
Brenda needs to keep a close eye on Susan’s satisfaction with the copier and the