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Chapter 14

Chapter 14. Building Long-Term Partnerships (Note: Continuation of five stages of relationships from Chapter 13). Stages Of A Partnership (Introduced in Chapter 13). Awareness Exploration Expansion Commitment Dissolution. Exploration. Set The Right Expectations

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Chapter 14

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  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. 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

  5. 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

  6. Continued Handle Customer Complaints • 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

  7. Continued 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

  8. Continued Questions that affect the action to be taken: (P.375) • 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)

  9. Expansion • 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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 • The expansion stage continues during the commitment stage

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

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

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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

  22. 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

  23. Dissolution Failing To Monitor The Industry • 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

  24. 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

  25. 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

  26. 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!

  27. Questions?

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