Service Quote

1. Service Quote • Closing a sale is like getting a single in baseball. All it does is put you on first base. The only way to advance and score in the game of selling is to give service. Sales Upbeat, Nov 10, ‘94

2. Service Quotes • We are in business to exceed customer expectations (West Central Co-op mission statement). • People are loyal to people who meet their expectations. This is true not only in business but also in our personal lives. (Jim Magnuson)

3. Not Coming Back? • According to Reece and Manning (Selling Today), which of the following is the most common reason for ‘lost’ (non returning) customers? • Too high of a price • Poor product performance • Poor customer service • Customer retirement or death • None of the above

4. Don’t Complain About Complaints? • Joan, a new sales rep for Agri King, has been told during a sales training session that she should welcome customer complaints. She always thought customer complaints were a ‘bad’ thing. Why does her supervisor view complaints differently?

5. Sell It or Bag It? • Randy, the meat department manager at a HyVee grocery store, has just complained to Amanda, the Hormel sales rep for that store. His complaint suggests a relatively new Hormel product introduced to him by Amanda is not selling as well as he thinks it should. How should Amanda respond to Randy?

6. What Do Farmers Want? According to recent survey results by a prominent crop input supplier, rank the following from least important to most important to crop farmers in determining their level of satisfaction with their supplier. • Agronomic knowledge • Billing/invoicing • Deliver what was promised • Delivery of products • Earns your personal trust • East of doing business • Range of products offered • Responsiveness to my service needs • Quality of custom application • Value for price paid

7. I Remember a Time When . . . • Think about a time when you received either excellent or very bad customer service treatment. What were the specifics of the incident? What did you do shortly after the incident, if anything? Do you believe the way you reacted was typical?

8. Don’t Be ‘Chicken’? • What is company policy for handling a customer complaint about product quality for the Perdue Company (large national chicken selling company)?

9. The Key to Profit? • According to a prominent Harvard Business Review article (“Putting the Service-Profit Chain to Work”) what is the key to profitability for most companies?

10. Until Death Do Us Part? • John is a sales manager for Central Iowa Motors. He is trying to calculate how much his company can afford to spend on customer service in order to keep a “customer for life”. How should John calculate that? What suggestions could John give his sales reps for providing excellent service?

11. Customer Service and Expectations • “All discontent is relative to expectations.” • Customers buy in expectation of receiving benefits; if actual or perceived benefits fall short of expectations, the customer is usually unhappy. • The salesperson should make sure that the customer’s expectations are not only met, but also exceeded! • Promise a lot, but deliver more.

12. Service and Follow Up is . . . • That part of the sales process that creates the best opportunity for repeat business • Critically important to both new and established customers • Becoming the primary value-added function in selling • The best way to enhance a business relationship

13. Service and Follow Up is . . . • The main thing that makes the customer feel he/she made a good purchase decision • Is the consummation of the deal • Is often a team effort (involving receptionist, billing department, delivery staff, etc.) • What you and your company do for the customer after the sale is made

14. Reasons for Lost (non returning) Customers Source: Reece/Manning

15. Customer Service Research Results Satisfied customers: • good experience => they tell 6 others • Excellent experience => they tell 12 others Dissatisfied customers: • Only about 1 of 25 complain to the company • On average, tell 8-10 others • About 95% will continue to buy if complaint handled well • On average, tell 5 others if complaint resolved well • 4-5x as costly to regain a lost customer as keeping a current one

16. Customer Service Research Results Conclusions ? • Be thankful customers complain so you can fix the problem and prevent ‘the cancer’ from spreading • If you don’t have repeat business, soon you won’t have any business • An estimate of the importance of repeat business is “customer lifetime value” = present value of expected future profits from doing business with a customer

17. Providing Excellent Customer Service is . . . • Following through on all of your promises to the customer • Delivering your product/service • On time • At right place • In correct quantity and condition • Installing product properly • Interpreting warranty

18. Providing Excellent Customer Service is . . . • Assisting customer with payment/financing arrangements • Training customer on use of product • Being available to answer any questions/handle problems

19. Some Little (?) Things a Salesperson Can Do to Provide Excellent Service • Follow up visit (not to sell again, but to check on previous sale) • Maintain positive, helpful, friendly attitude • Give customer something they didn’t expect • Make customer feel important and know them by name

20. Some Little (?) Things a Salesperson Can Do to Provide Excellent Service • Be there at or shortly after delivery • Sends message you stand behind your product and your word • Makes sure you are instantly aware of any delivery problems • Can clear up any customer confusion about product or misunderstandings • Thank customer, commend them, and invite any questions/feedback (via letter, card, e-mail, phone)

21. Dealing with Complaints • Let customer explain without getting defensive • Maintain positive attitude and listen • Do not offer excuses or alibis • Apologize and explain what happened (in person is best) • Remedy problem/make it right • Remember customer perception is key

22. McDonald’s ten commandments for customer treatment • The Customer is the most important person in our business. • The Customer is not dependent on us – we are dependent on the customer. • The Customer is not an interruption of our work; but the purpose of it. • The Customer does us an honor when calling on us. We are not doing the customer a favor by serving him/her. • The Customer is part of our business, not an outsider. The Customer is our guest.

23. McDonald’s ten commandments for customer treatment • The Customer is not a cold statistic, but flesh and blood: a human with feelings and emotions like our own. • The Customer is not someone to argue with or match wits with. • The Customer is one who brings us his/her wants. Our job is to fill them. • The Customer is deserving of the most courteous and attentive treatment we can provide. • The Customer has the right to expect an employee to present a neat, clean appearance.

24. Perdue Policy If a Customer Complains • The customer: • Is mailed a letter of apology • Is asked to fill out a questionnaire with regard to the problem • Is called by a corporate VP • Is given a coupon for a FREE chicken

25. “Putting the Service-Profit Chain to Work” A 5% increase in customer loyalty can boost profits by 25% to 85% Some companies (e.g. Xerox) have found very satisfied customers are 6 times more likely to repurchase with the company than satisfied ones. Lifetime revenue streams can be: $8,000 from a loyal pizza eater $332,000 from a loyal Cadillac buyer $ billions from a repeat aircraft purchaser

26. The Service-Profit Chain Company profitability Company loyalty Customer satisfaction Value & service Employee productivity (Source: HBR, March-April, 1994) Employee satisfaction

27. Customer Service – Summary Comments • Service is the last step for this sale, but it’s the first step for getting the next sale • Sometimes the best offense is a great defense • Offensive selling  pursuing new accounts • Defensive selling  providing excellent service to keep current accounts • “Caveat Venditor” “Let the seller beware.” • Providing excellent service: • Can be the most fun part of selling • Can be something that distinguishes your product • Is the one main thing over which you have total control

28. Service Quotes • A salesperson should learn this from a sheep farmer: you can shear a sheep many times, but you can skin it only once. • Caveat emptor → let the buyer beware. Caveat venditor → let the seller beware. • Delivery is more than unloading the truck. It’s carrying through on your promises. (Personal Selling Power, ’92)

29. Service Quotes • No sale is ever final. (Jim Reichart) • Well done is better than well said. (Ben Franklin) • There are no traffic jams if you go the ‘extra mile’. (Jim Cathcart)

30. Service Quotes • If you don’t have repeat business, soon you won’t have any business. • All discontent is relative to expectations. • Promise a lot, deliver more. • Undersell, over deliver.