CHAPTER 13
Service and Follow-up for Customer Retention
LECTURE OUTLINE
I. THE CORE PRINCIPLES: SERVICE
A. Service and follow-up after the sale shows you truly care.
B. Selling guided by the CORE PRINCIPLES leads to ethical actions, then to
ethical habits, then to character, and finally to your destiny.
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 effectiveness of the product and the
satisfaction of the customer.
B. What is customer service and satisfaction?
1. A person buying a product is buying a bundle of tangible and intangible
2. Buyers have expectations of what an organization should deliver:
3. Product – the product purchased has no defects.
5. Place – the product is available when and where needed and promised.
7. Exchange transaction – handled correctly, quickly and professionally the
first time.
8. After the sale – warranty honored, repairs or exchanges made cheerfully;
9. Customer service – the activities and programs provided by the seller to
10. Service quality is a customer’s perception of how well service provided by a
seller meets their expectations.
C. Expectations determine service quality
1. When buyers perceive service received as what they expected, or more, they
are satisfied.
2. Service quality describes how well the service provided meets customers’
expectations.
III. BUILDING A LONG-TERM BUSINESS FRIENDSHIP
A. Business friendship – the relationship formed between a salesperson and a client that
revolves around business-related issues.
B. Build a business relationship in much the same way you build regular friendships.
1. Level 1 – Acquaintances – people whose names you know, you see
occasionally, and of whom you know little about.
2. Level 2 – Friends – people whom we spend more time with and with whom
we share common interests and hobbies.
3. Level 3 – Intimate friends – often called “best friends,” these are the people
C. Several things happen between people before they become friends.
1. Self-disclosure – sharing a few things about yourself and allowing your
client to share a few things about him or herself.
2. Acknowledgement – everyone has a desire to be heard, acknowledged, and
understood; take time to listen to your client.
3. Step 2 – Don’t invalidate – avoid telling or making your client feel that they
are wrong.
4. Step 3 – Don’t try to change – do not attempt to change your client’s mind on
5. Attending – pay attention, or attend to your client. Use body language to
6. Talking – the foundation of any good relationship is good communication;
be a great listener, share information, and allow information to be shared.
D. Structure for survival – A good relationship needs structure to survive; this structure must
be established at the beginning and reaffirmed to avoid confusion.
E. Avoid control and one-ups. Do not try to control your client, and do not allow yourself to
be controlled.
F. Do you pressure a true friend? To have a lasting, wonderful relationship your self–
interest must come last.
G. What is most important? If you make decisions based on your own needs, at times you
will take advantage of your “friends.”
H. How many friends? – “A person with too many friends comes to ruin.”
IV. RELATIONSHIP MARKETING AND CUSTOMER RETENTION
A. Three levels of customer relationship marketing:
1. Transaction selling – a customer is sold and not contacted again.
3. Partnering – the seller works continually to improve the customer’s operations,
B. Relationship marketing builds friendships.
1. Relationship marketing – the creation of customer loyalty and retention.
2. An organization using relationship marketing is not seeking simply a sale or a
transaction; the goal is to retain customers.
V. CUSTOMER SATISFACTION ENABLES RETENTION
A. Customer satisfaction – a customer’s feelings toward a purchase.
C. What do customers expect of salespeople
D. Most important traits are:
2. Thoroughness and follow-through after the sale.
4. Market knowledge and willingness to “keep the buyer posted.”
6. Knowledge of the buyer’s product line.
8. Regularity of sales calls.
10. Technical education (knowledge of specifications and applications).
VI. TECHNOLOGY AIDS SALESPERSON’S POST-SALES SERVICE BEHAVIORS
A. Providing good service to customers in today’s competitive marketplace is not enough;
service must be excellent.
B. Post-sales service also requires technology and automation.
1. CRM technology and social media tools help facilitate activities and
behaviors that salespeople perform after closing the initial sale
VII. SO, HOW DOES SERVICE INCREASE YOUR SALES? – High-performance salespeople
can convert follow-up and service situations into sales.
A. Satisfied customers are easier to sell to
VIII. TURN FOLLOW-UP AND SERVICE INTO A SALE
A. What’s the plan after the sales: Making sure everything happens?
1. The sale is simply the start of the customer service process.
2. The salesperson often needs to lead, coordinate, or confirm that all of the
processes and resources are available to meet the customer’s timelines.
IX. 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:
2. Distribution of the number of products in a product line, including sizes, used
or merchandized by an account.
3. Level of cooperation you obtain, such as reduced resale prices, shelf space,
4. Your reputation as the authority on your type of merchandise for the buyer.
C. General rule – the greater your account penetration the greater your chances of
maximizing sales within the account.
X. SERVICE CAN KEEP YOUR CUSTOMERS
A. First: concentrate on improving account penetration.
B. Second: contact new accounts on a frequent and regular schedule.
C. Third: handle your customer’s complaints promptly.
D. Fourth: always do what you say you will do.
E. Fifth: provide service as you would to royalty.
F. Sixth: practical suggestions to show your appreciation:
2. Mail your prospect interesting clippings.
4. Send clippings about customers’ families.
6. Send birthday cards.
7. Prepare a brief, informative newsletter.
XI. RETURNED GOODS MAKE YOU A HERO – The salesperson should examine the
merchandise carefully.
XII. HANDLE COMPLAINTS FAIRLY – Customers may be dissatisfied with products for a
number of reasons.
A. The product delivered is a different size, color, or model than the one ordered.
B. The quantity delivered is less than the quantity ordered.
C. The product does not arrive by the specified date.
D. Agreed on discounts are not rendered by the manufacturer.
E. The product does not have a feature or perform a function that the customer believed
it would.
F. The product is not of the specified grade or quality.
XIII. YOU LOSE A CUSTOMER – KEEP ON TRUCKING! – Four things can be done to win
back a customer:
A. Visit and investigate.
B. Be professional.
C. Never criticize a competing product your customer has purchased.
D. Keep calling.
XIV. 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?
B. Occasionally a dishonest customer may require you and your company not to honor a
request; always have a plan for problem solving.
2. Express sincere regret for the problem.
4. Review your sales records to ensure the customer purchased the merchandise.
6. Follow up to make sure the customer is satisfied.
C. Dress in your armor; be prepared to meet a dishonest customer
XV. THE PATH TO SALES SUCCESS: SEEK, FOCUS, ASK, SERVE
A. Seek customers to serve and you will find them.
B. Knock and people will open their doors.
C. Ask and people will buy.
D. Provide service after the sale and customers will buy again.
E. Selling requires:
1. Faith
3. Follow-up
F. Developing service recovery skills
1. Service recovery focuses on resolving customer problems when a mistake
2. A service failure describes when a company does not meet a customer’s
expectations.
3. Service recovery process
2. Try to understand what the customer perceives is triggering the service
failure.
4. Discuss the alternatives with your customer and implement the mutually
agreed-upon recovery plan
5. Ensure the service failure does not occur again
G. Words of sales wisdom: Caring for people is the beginning of wise sales knowledge
H. Sales proverbs:
2. You lose “X” percent of sales or customers per year.
4. You do business with the one you trust, and you trust the one you know.
6. Obtaining new customers and selling more products to current customers are
the ways to increase sales.
7. For some types of selling, customer referrals are the best way to find new
8. It is always easier to sell to a satisfied customer or prospect than an unsatisfied
one.
9. The cost of acquiring a new customer is much higher than keeping a current
I. Knowledge versus wisdom.
1. We may amass knowledge, but without wisdom, our knowledge is useless.
J. Wisdom is learned.
1. We must trust and honor people.
3. We must make a life-long series of right choices and avoid moral pitfalls.
4. We must learn from our errors and recover.
XVI. TRUE CARING BUILDS RELATIONSHIPS AND SALES
A. What is the purpose of the sales call?
2. Present product benefits.
4. Provide excellent service.
B. Caring is seen. Caring about the customer is more than simply warm feelings; it is an