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Chapter 13 Topics

Chapter 13 Topics How important is service after the sale? How should salespeople stay in contact with customers? What sales strategies stimulate repeat sales and new business in current accounts? What techniques are important to use when handling complaints? 13- 2

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Chapter 13 Topics

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  1. Chapter 13 Topics • How important is service after the sale? • How should salespeople stay in contact with customers? • What sales strategies stimulate repeat sales and new business in current accounts? • What techniques are important to use when handling complaints? 13-2

  2. Why would you partner with someone else in business? Becoming a Business Partner • Assume for a moment that you are going to enter into a business partnership with the person sitting next to you. • What are the benefits of entering into a partnership? • What would be your attitude toward your partner? • When should you try to enter into a partnership? 13-3

  3. Ways to Build Partnerships and Goodwill • Maintain the perspective that the customer’s interest is paramount. • Remember customers between calls. • Build perceptions of trust. • Monitor order processing • Ensure proper initial use of the product or service. • Help in servicing the product. • Provide expert guidance and suggestions. • Provide any necessary special assistance. • Handle customer complaints efficiently and effectively. 13-4

  4. Major Components of Trust and Their Relationship to Partnerships Honesty Trust Bond neededfor apartnership Dependability Customer Orientation Competence Likeability Identify specific actions you could take as a salesperson to provide evidence of your expertise, reliability, and concern for the buyer. 13-6

  5. Thinking It Through • Some customers take advantage of salespeople by trying to have them perform almost all of the routine maintenance on a product for free. • What can you as a salesperson do to curb such a request? • How do you know where to draw the line? 13-8

  6. Assessing Service Failure • Attributions • Who is at fault? • Justice • Fairness Satisfaction Loyalty • Recovery • “Recovery • Paradox” Service Failure Intent to Repurchase Word-of-Mouth • Expectations • Expectations of failure • Expectations of recovery

  7. Handling Rude or Irate Customers Follow the Golden Rule Prove you listened Don’t justify, excuse or blame others Do the hard things first Call back if they hang up Don’t pass the buck 13-10

  8. What types of special assistance can a salesperson offer? • Serve as consultants, offering advice on store layout. • Set up special displays. • Provide free demonstrations. • Tidy up the shelves and physically restock them. • Train a reseller’s employees in how to sell the product to final consumers. 13-11

  9. Guide to Handling Complaints • Listen carefully, sympathetically, and without interrupting. • Express regret for any inconvenience suffered. • Reassure the customer that the company wants to do what is fair. • Talk about points of agreement. • Inquire, investigate, and examine to get the facts. • Try to get agreement on responsibility for the difficulty. • Gain agreement on a solution. • Take action as promptly as possible. • Educate and resell the customer to forestall future claims. • Follow through to see that the action promised has been taken. 13-12

  10. Effects of Customer Retention • Retaining 2% to 5% more customers has the same effect on profits as does cutting costs 10%. • It takes 7 sales calls (on average) to close a new account, but only 3 to 4 to close a subsequent sale. • 65% of the average company’s sales comes from current customers. • The average cost of acquiring a new customer is 5 times that of serving a current customer, largely due to demonstrations, trials, and samples. 13-13

  11. Buyer/Supplier Interface: Traditional Exhibit 13.7 Buyer Supplier Source: Ginger Conlon, Lisa Napolitano, and Mike Pusateri, Unlocking Profits: The Strategic Advantage of Key Account Management 13-14

  12. Buyer/Supplier Interface Team Exhibit 13.7 Buyer Supplier What is the role of the salesperson when you have achieved a partnership and you have direct communication between members of the two firms? Source: Ginger Conlon, Lisa Napolitano, and Mike Pusateri, Unlocking Profits: The Strategic Advantage of Key Account Management 13-15

  13. Moderate Resistance Major Resistance Little Resistance Moderate Resistance Change and Resistance Scope of Change Narrow Broad Fast Rate of Change Slow

  14. Any questions about the terminology? • Champion • Change agent • Complacency • Corporate culture • Cross-selling • Full-line selling • Preferred supplier • Rate of change • Scope of change • Upgrading 13-17

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