PERSONAL SELLING AND CUSTOMER CARE IN OIL & GAS INDUSTRY FOUNDATION

1. PERSONAL SELLING AND CUSTOMER CARE IN OIL & GAS INDUSTRY FOUNDATION MDPI/GIG OIL AND GAS TRAINING

2. Person-to-person dialogue Between prospective buyer and the seller Direct human contact Matching products to needs Involves… developing relationships discovering and communicating customer needs communicating benefits Personal selling defined MDPI/GIG OIL AND GAS TRAINING

3. Methods of personal selling • Retail selling • Business-to- business selling • Field selling • Telemarketing • Inside selling • Performed by outside salesperson at buyer’s place of business • Involves use of the telephone as the primary means of communications • Performed by inside salespeople at seller’s place of business

4. Personal selling • Personal selling is the most widely used means by which organizations communicate with their customers • Used by profit and nonprofit organizations, big and small • Money spent on personal selling far exceeds money spent on advertising MDPI/GIG OIL AND GAS TRAINING

5. Personal selling • 12 million people are engaged in personal selling in the United States • Represents 10% of the United States work force MDPI/GIG OIL AND GAS TRAINING

6. The characteristics of personal selling • FLEXIBILITY • Identify specific sales prospects • Adaptation to specific situations • Answer questions • Overcome objections • BUILDS RELATIONSHIPS • Managing the account relationship and assuring the buyers receive appropriate services • Salesperson understands and solves buyer’s problems

7. Limitations of personal selling • Expensive per contact • Many sales calls may be needed to generate a single sale • Labor intensive

8. Types of personal selling tasks • ORDER TAKING • Do very little creative selling • Write up orders • Check invoices for accuracy • Assure timely order processing • May use suggestive selling • Inside or field order- takers • Telemarketers are often order-takers • Due to improvements in inventory management and communications technology, some field order-takers have been replaced by computers

9. ORDER GETTING Creative selling More time consuming Sell to new prospects (pioneers) Sell to continuing customers (account managers) Some use of telemarketing, particularly to small accounts Seek out customers Analyze their problems Discover solutions Sell solutions to customers Types of personal selling tasks MDPI/GIG OIL AND GAS TRAINING

10. Selling function Working with orders Servicing the product Information management Servicing the account Conferences/meetings Training/recruiting Entertainment Out-of-town traveling Working with distributors Common activities of order-getting salespeople MDPI/GIG OIL AND GAS TRAINING

11. MISSIONARIES or DETAILERS Provide technical information and solve problems, but rarely sell Perform a public relations function CROSS- FUNCTIONAL TEAMS In large business-to-business transactions (new production lines, buildings, computer systems, etc.) a variety of technical specialists form a team to help the sales person and the client Sales support and cross-functional teams MDPI/GIG OIL AND GAS TRAINING

12. THE CREATIVE SELLING PROCESS FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION APPROACHING THE PROSPECT IDENTIFYING & QUALIFYING PROSPECTS MDPI/GIG OIL AND GAS TRAINING

13. Identifying and qualifying prospects • Identify prospects who have… • the need to buy • the financial ability to buy • the authority to buy

14. Identifying and qualifying prospects • Finding these prospects? • Trade lists • Referrals • Inquiries • Internet visits • Government publications • Coupons returned • Previous customers • Internet smart agents

15. The approach • Initial contact • Establish rapport • Make a good impression • Problem solver for prospective buyer • Collect information

16. Sales presentation • Tell the product story • Attention, interest, desire, action • Use of appropriate sales aids (computers, videos, brochures) • Importance of verbal and non verbal communications

17. Handling objections • Listen and learn first • Yes…but • Additional information • Counter arguments • Change product or service to overcome objection

18. Closing the sale • Know when to close • Trial closing • Assumptive closing • Straightforward approach • Summative approach • Narrow the alternatives When would you like to take delivery?

19. Closing the Sale SE: 895 - Lap 107 MDPI/GIG OIL AND GAS TRAINING

20. Closing the Sale • The point when the salesperson obtains agreement from customer. • Customers are willing to purchase when: • Benefits have been explained. • Features are demonstrated. MDPI/GIG OIL AND GAS TRAINING

21. When Can You Close? • At any point in time: • Approach • During Presentation • Overcoming Objections

22. Customers often need assistance with decisions Make customers feel good Builds goodwill for the store Increases your ... Sales Self Confidence Earnings Asking the Customer toBuy is a Courtesy! MDPI/GIG OIL AND GAS TRAINING

23. Techniques • Direct Close - Ask Customer to Buy • Choice Close - Offer a choice

24. Techniques • Assumptive - You assume they will buy • (Could result in lost of sales) • Minor - Points/Stimulus Response - Based on several minor points of agreement MDPI/GIG OIL AND GAS TRAINING

25. Techniques • Summary - Review features/benefits • Standing Room Only (SRO) - Urgency to buy • One of a Kind • Limited Supply MDPI/GIG OIL AND GAS TRAINING

26. Techniques • Closing on Objections • Contingent Close - By proving a point MDPI/GIG OIL AND GAS TRAINING

27. Techniques • Contrasting Advantages/ Disadvantages • Visual Aids

28. Techniques • Suggesting Ownership - Suggest benefits • “when,” “will,” • Narrative- Story about people who have bought it. • Related Merchandise Close MDPI/GIG OIL AND GAS TRAINING

29. Techniques • Bonus - Free gift/bonus with purchase • Silence - Stop Talking

30. Customers Are Not Alike Techniques will vary with: • Sales situation • Personality • Buying motives

31. Guidelines • Use an appropriate closing technique. • Maintain a positive attitude with customer. MDPI/GIG OIL AND GAS TRAINING

32. Guidelines • Display self - confidence • Avoid negative closes • Avoid negative gestures • Take time to explain the good fully MDPI/GIG OIL AND GAS TRAINING

33. Guidelines • Don’t oversell • Leave customer in a state of decision • Always be Closing (ABC) MDPI/GIG OIL AND GAS TRAINING

34. Follow up • Make sure all promises have been kept and the customer is satisfied with the purchase • Resolve any problems encountered It’s working perfectly!!!

35. Provides a practical grounding in interpersonal skills The ability to understand and appreciate business decision processes Getting to know the customers Acceptance of individual responsibility for performance Focus on measured results Success sales people are often considered a desirable pool for future middle and upper management Salespeople as future managers MDPI/GIG OIL AND GAS TRAINING

36. Ethical issues in sales and sales management • Kickbacks, bribes and “gifts” • Price discrimination • Cheating on expense accounts • Misrepresentation

37. END • THANK YOU

38. . CUSTOMER SERVICE FOUNDATION LEVEL

39. OUTLINE • Definition of customer care • Requirement of good customer care • Why has customer service remained elusive? • Who are the internal customers • Customer service dynamics • Reputation management • Problem solving skills

40. . CUSTOMER SERVICE Core aims of the module:This modules emphasizes the need for best customer service practices especially in the oil and gas industry. The module seeks to throw more light on the importance of customer service in practical terms.

41. What is customer service Customer service is defined as the commitment to providing superior value to customers through caring customer contact, technical support and adding benefits in order to maximize service experience.

42. Fundamental requirements of customersCustomer wants and needs differ. However, most customers are united in their quest for the following: • Service: Depending on the level of involvement, customers will require some appreciable level of service delivery. High contact services such as buying fuel from the pumps require a high level of customer service. • Appreciation: Customers derive some pleasure when service providers appreciate their custom. Name recognition, courtesy, expressing gratitude and offering discounts are ways of showing appreciation.

43. Action: Swift response to concerns, complains and questions provides reassurance to customers which enhances service experience. • Price: Customers need fair prices. Unfair prices give customers a sense of exploitation leading to negative customer encounters. • Quality: Customers desire products that meet stated attributes. In customer care, quality is a function of how a customer feels and not the inherent benefits of a product.

44. Customer characteristicsCustomers exhibit some features based on which firms can segment them. Such traits can be described as Demographic, Psychographic or Firmographic information.Using the above attributes to group customers allow organizations to satisfy and exceed the expectations of customers in a competitive manner. • Demographic Information : Deals with attributes such as age, sex, income status, ethnicity, religion, occupation etc. • Psychographic: Involves categorising customers based on social class, life styles, reference groups, hobbies etc. • Firmographic: This deals with B2B transactions. Using this criterion allows companies to group business customers according to attributes such as volume of purchase, retail, wholesale etc.

45. Why has customer service remained elusive? • Lack of trained and qualified customer service staff • Reluctance to invest in customer care infrastructure • Failure to leverage on information technology to enhance customer service. • Lack of periodic evaluation of customer service. • Customer service providers inability to perceive themselves as customers. • Absence of regular performance appraisal. • Low level of empowerment.

46. Treating employees as internal customersAll employees need to be treated as internal customers. Organizations need to engage in a set of activities that will keep their employees happy before they can expect an exhibition of client care to external customers.According to Kotler, internal marketing deals with “marketing by a service firm to train and effectively motivate customer contact employees and all the supporting services to work as a team of people to provide customer satisfaction”.Oil and gas firms need to promote internal customer culture by:

47. Creating an internal awareness of customer care vision and objectives. • Determine the expectations of internal customers (employees) • Communicating to internal customers using face to face meetings, intranet, newsletters etc. • Set a feedback mechanism which employees (internal customers) can use to proffer suggestions complaints etc. • When internal customers are satisfied, it will lead to manifold effects such as, • Fewer shoddy goods. E.g. refining crude to desired standards • Boosted morale of workers • Diminished labour turnover • Fewer apologies to customers. E.g. for incorrect bills to fuel wholesalers and distributors • Enhanced company reputation • Retention of valued customers.

48. Loss of customers • Poor customer care can lead to the loss of valued customers with adverse consequences. The loss of customers lead to he following: • Loss of sales revenue • Loss of future business • Fall in competitive position • Job redundancies • Decline in reputation

49. CUSTOMER SERVICE DYNAMICS • Satisfying and exceeding customer expectations • Expectations involve our personal desire and vision of the results that will emanate from a service encounter. • The following can be used to satisfy customer needs and exceed their expectations. • Know your customers (who are they) • Determine customer expectations. • Inform customers of service standards. • Live up to customer expectations. • Maintain consistency and reliability.

50. The following are worth noting: • Expectations are not static. • An earlier expectation when met can lead to an upsurge in expectation levels • In handling customer expectations, the service provision of competitors should be watched. Levels of Expectations • Primary expectations: This pertains to the customers basic requirements of a service encounter. For example, a car owner who buys petrol from the pumps will expect his car to be filled with the correct quantity of fuel purchased. • Secondary expectations: This is based on previous experience and serve as service enhancements. Ways to meet secondary expectations include courtesy, empathy, reassurance etc.