Changing needs

Salespeople used to organize themselves to meet the needs of the products and services they were selling. That’s changed.

Customers aren’t what they used to be. Now they expect salespeople to concentrate on meeting customer needs.

Here are three reasons why customer relationship management is critical today for every salesperson:

1. Commoditization. When customers are offered a vast number of similar products, all equally capable of doing the necessary job, they begin to see most products as commodities, distinguished only by price.
2. Branding. To differentiate themselves from the competition, salespeople and their companies try to emphasize and cultivate distinct brands. Brand preference and brand loyalty are the new touchstones of customer relationship management.
3. Customer information. To ensure that their products and services meet customer demands, salespeople are now gathering and analyzing customer information like never before.

Customer strategy

Relationship building requires using all available means to discover what the customer values and then supplying it. The key to success is to focus on each individual customer, not on a mass of customers.

IDIC and trust

Customer information is a trust point, not just as asset. Salespeople severely compromise their customer relationships if they violate that trust.

The acronym IDIC stands for the four steps of the customer relationship: identify, differentiate, interact and customize.

• Identify. Standardize the way you collect and analyze customer information. Understand customers’ business issues that can make or break a sale. Gather research that allows customers to be recognized and remembered during every contact. Keep the information current. If you stay focused on customers, you will be able to spot problems or needs and respond quickly before things get out of hand.
• Differentiate. Some customers have a higher value than others. Customers who cost less to serve are higher-margin and higher-value customers than those who cost more. Customers who use more high-margin products or services are also of higher value. Differentiate your customers based on their needs, buying patterns or other relevant characteristics.
• Interact. Interaction with the customer involves both assumptions and understandings. To have a dialogue, you and your customer must accept the possibility that the dialogue will cause a change in their approach, understanding or attitudes.
• Customize. Quantify soft advantages, like quality, reputation, service and reliability and make them tangible. Show how your products and services align with customer needs and priorities. Define how they’ll help the customer.

An effective follow-up can be a telephone call, fax, e-mail, letter, hand-written note, personal visit or any combination of these.  An effective after-sales service philosophy requires constant vigilance and dedication. Here are eight tips for effective after-sales service to share at your next sales meeting:

1. The customer is not always right. The goal is not to discredit, embarrass, belittle or challenge them in a destructive way. It’s usually better to discover the source or cause of their incorrect perceptions, beliefs or attitudes.

2. The customer is never completely wrong. There’s usually some element of their perception that is a true reflection of reality as they see it. Customers can be informative if we keep an open mind and are receptive to what’s being said. They can help pinpoint distribution or sales methods that need improvement.

3. The customer deserves your best, regardless of the time of day, day of the week, or month of the year. The fact that you worked late last night making an emergency delivery shouldn’t become the customer’s problem. These circumstances and thousands of others like them, if they become the customer’s problem, may cause him or her to switch to a competitor.

4. Don’t pass the buck. Whoever hears about a problem owns the problem. Try to avoid being defensive or upset when a customer brings you a concern or complaint. Accept the fact that the problem exists and help get it solved.

5. Don’t be too busy for your customers and don’t make it difficult for them to do business with you. How many times have you as a customer gotten the feeling that you’re an interruption to another salesperson’s day or workload? Try not o treat customers this way.

6. Say what you will do and do what you say you will. Follow through, keep your promises, honor your commitments, and keep your customer informed of your progress. Customers tend to be more understanding, patient and tolerant if you communicate with them with integrity and in a timely manner.

7. Be interested, care and act like you’re glad the customer is doing business with you. People like doing business with people who appreciate their business. They are usually willing to give more of their business to salespeople who are accommodating and interested.
You show you care by having up-to-date product knowledge and trying to answer all questions the customer may have.

8. Think ahead of the customer with a problem-solving attitude. To prosper and build repeat business, salespeople should try to anticipate customer needs and problems. It will be too late if you wait for the customer to bring their problems to you or communicate their future desires and needs.

Adapted from 91 Mistakes Smart Salespeople Make, by Tim Connor.

The late Apple co-founder will be remembered for a number of things, including his ability to attract and captivate audiences and the media. An analysis shows he used the same formula — one that anyone else can employ.

What made Jobs’s presentations so intriguing? In many cases, it boiled down to a combination of these five traits:

1. His presentations were always based upon a central theme: Sometimes Jobs would repeat a slogan, other times he’d double back to a common idea. But Jobs was always sure to plant a seed in prospects’ minds early, and reinforce it often. The common theme was almost always associated with a vision of how Apple’s products could help customers achieve their goals.
2. He made a clear connection between each of his major selling points: Jobs once said, “The great thing about Apple products is that they’re innovative and they work … and when you buy more than one, they work even better.” Much like his products, Jobs was an expert at connecting each benefit to a need. He didn’t simply present features, he backed them up with everyday examples customers could relate to.
3. He sold the experience: Steve Jobs’s presentations were all about showing buyers the future of technology, and the simplicity of embracing it. He empowered people by showing them how much simpler or unique their lives would be by simply using the product he was promoting.
4. He used strong adjectives: Jobs used language to excite the people in his audience. His enthusiasm was a major driving force behind each product.
5. He knew how to create a “Wow” moment: Jobs always surprised his audience by offering stats or demos that drove home the extreme value and “wow” factor of Apple’s products. His presentations were billed as must-see events, with the media rushing to summarize (and advertise) all the major bullet points.

Based in part on “How to Deliver a Great Presentation Like Steve Jobs,” a BNET video presentation.

The list is the product of the people who run the American Customer Satisfaction Index, which gathers CS data from consumers of all goods and services and translates it into collective dissatisfaction. Here are ACSI’s 10 worst (going from worst to, uh, not-so-worst):

1. Airlines (tie). When’s the last time you enjoyed flying?

1. Newspapers (tie). Bad customer service? Who knew they had customers?

2. Subscription television service.  The inept and tardy cable guy has become part of American folklore.

3. Wireless telephone service. There’s nothing more satisfying than calling your provider to complain about dropped calls, and having that call dropped.

4. Motion pictures. Honestly, I don’t get it. Do people expect Tom Cruise to make popcorn? Oh, wait, I get it. The movies stink.

5. Fixed-line phone service. Well, at least it’s better than wireless.

6. Cellular telephones. What we don’t realize is that cell phones have become all-purpose computers that — oh, by the way — double as poor-quality phones.

7. Hospitals. What’s the alternative? Undertakers? You’re not supposed to enjoy the hospital.

8. Network cable TV news. We should be worried about anyone who likes the news these days.

9. Computer software. Not happy? Just send an “error report.” Yeah, right.

10. Limited-service restaurants. That’s why they’re called “limited service.”

If customers aren’t saying these things about your company, it could be a sign you’re about to lose them.

• I trust you with my problems. I feel safe bringing them to you. You provide excellent advice. You encourage me to bring solutions with my problems.
• You’re practical, pragmatic and decisive. You get things done, but you leave space for some “what if” thinking. You help me to tap into my own creativity.
• You’re there when I need you. You help keep the wheels turning. You take the time to evaluate my progress and ensure I’m still aiming in the right direction.
• You’re an expert. You help me see and understand the critical differences between your offering and that of others. You excel at drawing these distinctions.
• You show up with more than one approach to the challenges I’m facing. You’re at your most persuasive when you’re showing me how you weigh one choice against the other. I won’t always agree with you, but watching you think things through will help me think things through.
• I trust your recommendations. I know you’ve done your research or are speaking from experience. This gives me great confidence. You invite me to share my own ideas or insights.

Adapted from the book Standout by Marcus Buckingham, a sales trainer.

Here are three statements that can be said of most prospects, according to sales consultant John Graham:

• They’re more demanding. Whether it’s the Internet or the competitive economy, prospects are more determined to get the most value for their purchases. Some of them go into a sales presentation with a sense of entitlement that doesn’t end with price, quality and service. They expect salespeople to increase their perceived value of the product or service.
• They’re more analytical and more educated about everything involved with the product or service being sold. The key to selling these prospects is to keep them satisfied – find out what they want and give it to them. You’ll be perceived as a consultant, adviser and problem-solver, not simply a person pushing a product or service.
• They expect the salesperson to be an ally, not an adversary. Prospects used to think of themselves on opposite sides of the desk from a salesperson. This is no longer true. Prospects try to establish a sense of rapport, trust and respect with the salesperson. Their current attitude reflects a sense of partnering with the salesperson.

Meeting the needs

Here are what effective salespeople are doing to meet the changing needs of today’s prospects:

• They recognize that customers have increased knowledge about the products or services they’re buying. Salespeople anticipate these higher expectations and use value-added strategies to meet them.
• They create an atmosphere of trust and openness in sharing information with prospects. They try to provide solutions that will help prospects in the long-term. They are much more open and candid in dealing with prospects and trying to develop long-term solutions.
• They recognize their pivotal role of matching the prospect’s increased demands while maintaining the overall profitability of the companies they represent.
• They understand the importance of earning the prospect’s respect. They gain it by showing prospects their conviction and enthusiasm.
• They recognize that this is the age of the expert. Prospects want to buy from a salesperson who has in-depth knowledge and experience to sell them the right products or services.
• They learn from failure and disappointment. They see problems as opportunities to use their creative energies and they look upon obstacles as challenges to be met and overcome. They are not defeated by rejection. They accept failure as a part of life and know that there’s a lesson to be learned in every setback.
• They set goals. They focus on what they want to achieve, establish priorities, and know what they have to do in order to keep moving forward. Their plans are flexible enough to allow for the unexpected, but they always have a specific destination in mind.

In a recent survey by Sirius Decisions, prospects were asked to evaluate their initial meetings with salespeople. Here are the results:

• 92% said the initial sales call was of little or no value.
• 82% said salespeople had not done their homework in regardss to the buyer’s needs, and
• 71% reported salespeople talked too much about their company and products and not enough about the buyer’s interests and needs.

The typical advice for making a better impression is to step into the shoes of the buyer. Easier said than done, as these four scenarios indicate:

1. The salesperson follows a prepared script,  talking about products or services, not about buyer needs. As a result, the buyer may have to consider solutions that don’t meet his or her needs. Buyers look for fast, clear and simple solutions that are aligned with their needs. When they don’t get them, they usually move on.
2. Buyers are skeptical that the salesperson can deliver as promised. When competition is tough, some salespeople overpromise. It’s much better to make realistic promises, and then keep them. Nothing destroys alignment faster than broken promises.
3. Key buyers in the decision process had little or no contact with the salesperson. As part of due diligence, a seller should try to learn where who the decision makers are.
4. All the vendors look the same, so the buyer bases the decision on price alone. When buyers perceive that all solutions are the same, they tend to base their decision on price alone.

Bridging buying with selling

Bridging buying with selling — and making a meaningful first impression — involves four distinct phases:

1. Recognition of needs, so sales aren’t lost because a prospect isn’t aware of them. The prospect’s most important concern in this phase is to identify a need that justifies the cost of solving it. Some salespeople lose perspective in this phase, forgetting that their task is to build awareness of the problem, increasing the prospect’s consciousness of the need. A better approach is to listen for needs. A good question salespeople ask themselves in this phase is, “What is the prospect thinking?”
2. Resolution of concerns, so sales aren’t lost due to customer anxiety. There are two dangers in this phase. One is to ignore or downplay concerns the prospects expresses in the hop they will simply go away. The other is to try to apply pressure. The most dangerous error at this phase is for a salesperson to sit back and hope or trust that those fears will resolve themselves.
3. Evaluation of options, so sales aren’t lost to a competitor. In this phase prospects have recognized a need. Now they’re weighing the pros and cons, the strengths and weaknesses, of each option. A trap here is for salespeople to fail to recognize that the customer has perceived a need and is ready to look at options. A better strategy is for a salesperson to stay focused on the need to and ask questions that make the problems more serious.
4. Implementation, so sales aren’t lost due to after-sales neglect. A buying decision doesn’t necessarily mean that the sale is done. The overriding danger now is for a salesperson to assume the selling job is done. Research shows that many sales are lost in this phase. Good after-sale follow-u[p and support solidifies sales immediately and for the future. The effective salesperson in this phase shifts emphasis onto installation, after-sale support and all other continuing contacts with the customer.

Adapted from Selling for The Long Run, by Wendy Reed.

1. Work against a competitor with established ties to the prospect. Try to find out how long they’ve dealt with their present supplier and who they used before the switch. What made them change? Do some research. There may be new developments, products or services that your prospects aren’t aware of.
2. Win back lost accounts. Even the best salespeople lose an account now and then. They also know that if they approach their former customers properly, many will come back. They look for specific reasons why customers left. They check account records carefully to see if there were any problems with delivery or quality that went unanswered. They come up with plans to fix problems and share those plans with former customers.
3. Get off to an early start. Many decision makers get to the office early before strategic gatekeepers are in place. They might just pick up their phone or answer the door if a salesperson calls early. They also have more time to listen to a sales presentation before the constant interruptions that may occur later in the day.
4. Be a problem solver. Try to satisfy the customer instead of finding out whom or what caused the problem in the first place. Make sure you have all the information you need before you try to come up with a solution. Understand that how you respond to a problem makes you special in the eyes of the customer.
5. Hold yourself accountable. Salespeople who take responsibility for their actions usually have the best results in sales and customer service. When their new business is down, they look within themselves instead of blaming prospects or business conditions. Some salespeople try to place blame elsewhere when their prospecting efforts fail. Top salespeople set specific goals tied to a clear system for measuring performance and take immediate actions to support their goals.
6. Follow up consistently. The number one complaint customers have about salespeople is a lack of consistent follow-up after they have closed a sale. Follow-up is a great way to show customers they have made good decisions with their purchasing dollars.
7. Add value, not cost. Instead of focusing on price during a sales call, break down all the ways your products can help reduce costs or increase profits. If you provide evidence that your products provide greater ROI than your competitors, a small difference in price is rarely a factor.

Adapted from the book Selling When No One is Buying by Stephan Schiffman, an author and consultant, who has trained more than 500,000 salespeople at firms such as AT&T, Chemical Bank, Manufacturer’s Hanover Trust, Motorola and U.S. Health Care.

1. Knowledgeable. Are your salespeople considered experts in the field? Do they seek out opportunities to speak at conferences? Do they join industry organizations? Most importantly, do they take the time to research every prospect prior to the initial sales call?
2. Professional. Customers describe “professional” salespeople as passionate and persistent, but not pushy. Professional reps also have high levels of integrity, and they offer solutions that help buyers succeed.
3. Thorough. Do salespeople follow up (and follow through) on their promises? Do they cover every detail with prospects and tailor every solution to the prospect’s specifications? Are they efficient?
4. Results-oriented. Results-oriented salespeople quantify the type of ROI a prospect can expect from doing business with them. But they also pride themselves on resolving customers’ issues ASAP, and taking personal accountability for the outcome.
5. Problem-solving. Every salesperson offers a product or service. But what gives top salespeople the edge (in customers’ eyes) is the ability to translate how their offer can help prospects overcome some of their biggest obstacles.
6. Relationship-oriented. Closing a sale isn’t nearly as important as building a relationship. Sales come and go, but solid relationships result in loyalty, referrals, repeat business and trust.
7. Customer-focused. Do salespeople put the customer’s needs before their own? Do they consider the sale from the customer’s perspective? Do they tailor value propositions to each individual customer’s needs?
8. Timely. More than 55% of customers say they’d never do business with a company again if it took more than 24 hours to resolve a service issue.
9. Communicator. Value-added salespeople maintain a constant cycle of contact with customers so they’re the first to know when an issue arises. They also keep customers on top of what’s changing at all times, so the customer isn’t taken by surprise by cost increases or changes to existing products or services.
10. Reliable. Customers love reps who underpromise and overdeliver. Exceeding expectations early on could be the key to earning buyers’ trust (and business) for years to come.

Source: Value-Added Selling by Tom Reilly, TomReillyTraining.com.

More often than not, it’s your salespeople. To deliver great service, exceptional salespeople think of it as a separate and distinct product. They start thinking about service from the customer’s perspective. How were they treated? What did they expect and were their expectations met?

To remain focused on the goal of delivering truly outrageous service, they ask themselves: “How would I treat my most profitable customer?”  Then they apply the answer to all of their customers and prospects.

POS Service

Giving a customer “positively outrageous service” (POS) creates a halo effect for your product or service. The customer feels encouraged and wants to reciprocate.

This reciprocity may include the most powerful marketing medium, word-of-mouth, an enthusiastic, immediate, frequently repeated personal testimonial.

From satisfied to loyal

We all know that a satisfied customer is someone who has had a pleasant experience. A loyal customer is someone who has a relationship with you, values it and resists change.

Loyal customers buy more than satisfied customers. The flip side of these benefits is that loyal customers demand more service. They notice small things, such as waiting too long for service or not being acknowledged and get upset.  Here are some tips to help you satisfy a loyal customer’s complaints:

1. Agree with the customer. When customers are angry, agree with them and share your concern about their problems. This is very different from being angry with the customer. If you agree with the customer, it’s almost impossible for the customer to be angry with you. Agreeing doesn’t mean that you’re accepting blame for the situation for you or your company. It simply sets a better tone for resolving the complaint.

2. Ask for the customer’s input on a solution. Simply asking, “What will make you happy?” is a good way to solve a problem. This straightforward question can establish a common ground for finding a reasonable solution.

3. Take responsibility. You can solve the problem, learn something and help your customer all in one process if you take charge. Customers usually ask for less once you offer to help. Once they have a complaint resolved, customers usually move toward the loyalty end of the scale.

Adapted from Why Service Stinks and Exactly What to Do About It, by Scott Gross.

One of the keys to handling a price increase successfully is determining how and why each buyer uses your product or service.

Some important questions for salespeople to consider:

• Does the buyer compensate for the price of your product or service by charging their customers more? If so, the major issue will be helping buyers justify an increase to their customers.
• Are all of your competitors raising their prices as well? If so, the increase could provide an opportunity. If you’re raising prices by a lower percentage than competitors, that could be a valuable selling point. You can even provide a chart that shows your percentage increase compared to top competitors, so buyers can see how much they’re saving long-term by staying with you.
• How much does the buyer rely on your product or service? If a buyer relies heavily on you, explain that the increase is necessary to maintain the top-notch quality they’ve come to expect.
• Why did the customer agree to do business with you in the first place? This is the key to most buyer relationships and it often holds the key to keeping them as customers. Determine why each buyer prefers you to the competition. Whatever the reason, use that as the focus when explaining why the hike is necessary.

Navigating a price increase has a lot to do with how salespeople manage buyer expectations in the time leading up to the change.

Here are some steps top managers insist salespeople follow when prepping for an increase:

• Give the buyer lead-in time. The more notice you give, the better. Proactive salespeople make it a point to personally discuss the price increase with buyers via phone or in person. That way salespeople are viewed as advocates, looking out for the buyer’s best interest. More importantly, it ensures buyers don’t find out about the increase via direct mail (or a bill) — circumstances which can really drive buyers away.
• Get Service up to speed early. Buyers contact Customer Service whenever they have a question about price. Avoid any snafus by informing Customer Service of the price increases ASAP. Provide specific instructions for handling any question buyers might have.
• Get salespeople on board. Price hikes are just as awkward for salespeople as they are for buyers. Top managers meet with salespeople in advance to explain why the increases are necessary, answer any questions salespeople have, and build belief in the fact that this is the best way for your company to continue offering the quality buyers have come to expect.
• Get senior execs involved. When prices go up, buyers often demand to speak to “someone in charge.” Appease them by having high-level execs agree to take some phone calls regarding the increase. It makes buyers feel like their business is important, and it also gives them a renewed sense of confidence about their relationship with your company.

In the quick-fix fast-food business, average employee turnover lingers somewhere between 300-400%. But that’s not the case at the British-born fast food chain Pret a Manger, where average turnover is a remarkable 60%.

How do they do it?

All signs point to the one-two combination of a unique training program and management philosophy which is rooted in ensuring employees are consistently focused on ensuring customers enjoy more than the food they’re purchasing, according to a recent New York Times article.

And that’s not all. Year-to-date profits at the chain are up 37% across the board, a leap which is almost unheard of in this lagging economy.

Some of the everyday maxims Pret a Manger emphasizes that every service department can benefit from:

• Several employees, as well as front-line managers, manning the counters during peak hours, so there’s never a long line or wait for service.
• A hospitable greeting that extends the notion the company isn’t only there to fill your order, it wants to ensure you leave happy and satisfied.
• Cheerfulness and enthusiasm play a huge role in determining who gets hired and promoted, which gives employees a constant incentive to stay on top of their game when dealing with customers.
• Potential hiring candidates are sent to a local outlet for six hours after which it is the employees – not management – who vote on whether the candidate would be a “good fit” for the location.
• Employees are aware the company will regularly send in “shills” whose job it is to assess whether the staff is providing pleasant, prompt and reliable service. If the location gets top marks (more than 80% of them do), all of the employees at that location are awarded a $1 an hour bonus in their paycheck that week.
• Managers are provided a substantial monthly budget to spend on rewarding employees for good work.
• When employees are promoted, they are awarded a specific $ amount in vouchers, which they cannot keep for themselves. They are instead asked to choose employees who were particularly helpful along the way, and divide the vouchers among those employees.
• Leftover food is donated to local food banks at the end of each day, which increases each Pret a Manger’s standing in the community, as well as its reputation for philanthropy.
• Deliveries are made on foot (to avoid the jarring, spilling and poor presentation caused by delivering via bike), and hand-delivered at all times.

All of this is combined with continuous ongoing training that maximizes the chance each of these lessons will stay with employees, regardless of how long they’re with the company.

Source: “Would You Like a Smile With That?” by Stephanie Clifford, New York Times, 8/6/11.

The first step toward great customer service is to look at the employees in your organization who have lots of customer contact — salespeople.

Some salespeople are service naturals. They devote full attention to each customer and offer help without being asked. They are energetic, perceptive and empathetic.

These critical qualities have little to do with a salesperson’s technical ability and a lot to do with how he or she treats prospects and customers.

Since there’s no right or wrong personality in developing a “service attitude,” every salesperson can learn how to relate to customers on a personal level.

Define by service

Service is the first thing customers and prospects notice in any salesperson. Unique service can make any salesperson different and distinguished, regardless of size, budget, location or industry.

What defines exceptional service? Who are the salespeople who make it happen?

To deliver great service, exceptional salespeople think of it as a separate and distinct product. They start thinking about service from the customer’s perspective. How were they treated? What did they expect and were their expectations met?

To remain focused on the goal of delivering truly outrageous service, they ask themselves: “How would I treat my most profitable customer?” Then they apply the answer to all of their customers and prospects.

POS

Giving a customer “positively outrageous service” (POS) creates a halo effect for your product or service. The customer feels encouraged and wants to reciprocate.

This reciprocity may include the most powerful marketing medium, word-of-mouth, an enthusiastic, immediate, frequently repeated personal testimonial.

From satisfied to loyal

We all know that a satisfied customer is someone who has had a pleasant experience. A loyal customer is someone who has a relationship with you, values it and resists change.

Loyal customers buy more than satisfied customers. The flip side of these benefits is that loyal customers demand more service. They notice small things, such as waiting too long for service or not being acknowledged,  and  get upset.

Here are some tips to help you satisfy a loyal customer’s complaints:

1. Agree with the customer. When customers are angry, agree with them and share your concern about their problems. This is very different from being angry with the customer. If you agree with the customer, it’s almost impossible for the customer to be angry with you. Agreeing doesn’t mean that you’re accepting blame for the situation for you or your company. It simply sets a better tone for resolving the complaint.

2. Ask the customer’s input on a solution. Simply asking, “What will make you happy?” is a good way to solve a problem. This straightforward question can establish a common ground for finding a reasonable solution.

3. Take responsibility. You can solve the problem, learn something and help your customer all in one process if you take charge. Customers usually ask for less once you offer to help. Once they have a complaint resolved,  customers usually move toward the loyalty end of the scale.

Adapted from Why Service Stinks and Exactly What to Do About It by Scott Gross.

Why are so many customers leaving? Because Netflix implemented a major price hike that significantly impacted more than 75% of its core customers (with some of them forced to pay as much as 60% more a month, assuming they maintained the same rental plan).

The unfortunate part is it didn’t need to go down that way.

All Netflix actually did was recalibrate its pricing model, which is something everyday companies do on a fairly regular basis.

In fact, some of the new pricing options could’ve entitled members to substantial savings. The problem resided in the way Netflix managed (or failed to manage) the transition.

Here are three mistakes Netflix made, as well as tips for how every manager/company can avoid similar oversights:

1. Provided very little lead time: Netflix didn’t offer months of advanced notice, during which customers could explore which plan was best for them. Instead, it dropped the new price plans like a carpet bomb and billed existing customers accordingly.

A wiser strategy: When/if a price increase or change in service becomes necessary, contact customers ASAP to explain when the change will take place, how the change benefits them and why it increases the value of their  investment.

2. No positive spin: Netflix took the approach of simply treating the subscription increases like business as usual, a tactic which infuriated loyal customers and made them feel as if the company’s only motive was profit.

A better strategy: Have salespeople contact loyal customers directly, acting as consultants to help them choose the buying option that offers them the most value. It also helps to have reps spotlight all the ways new pricing models can provide customers with superior ROI and/or more benefits than they’ve received in the past.

3. All take, no give: Netflix had no PR campaign or marketing strategy aimed at balancing the hikes by saying, “But here’s what you can look forward to!”

A better strategy: Capitalize on all the positives that come along with any changes the company makes. If the move is good for business, chances are there’s a reason why it’s also good for customers. The problem with Netflix’s low-profile approach was that it made it seem like the company was trying to squeeze loyal customers for more revenue. Despite what Netflix does going forward, that perception will always linger in customers’ minds.

(Based in part on “Netflix Shows How NOT to Raise Your Price,”
by Geoffrey James, BNET)

1. The customer is always right. NO! Everyone makes mistakes — even customers. A better strategy is to steer clear of the blame game, and focus on what everyone can do to find a solution. It’s not personal (who’s right or wrong). Sometimes, a salesperson’s best tool can be a simple, sincere apology.
2. Once you turn prospects into customers, the heavy lifting is done and it’s time to go on cruise control. After you’ve won a new customer, what’s the next thing they see from you? A bill. It can tend to make people suddenly feel unappreciated. One solution: A simple, hand-written thank-you note. You can even keep a stash of cards with you and write a few out the next time you’re stuck waiting for someone.
3. Everybody expects you to use social media to stay in touch. Believe it or not (tongue firmly in cheek), there are customers out there that rely on the telephone or email to stay in touch with your business. What should you do? Ask customers if they wish to be in contact with you through social media, and how you both can make it work. Or check to see which methods of communications they are using to contact you. That will give you a starting point.

1. 1% pass away
2. 3% move
3. 14% are lured by a competitor
4. 14% are turned away by product or service dissatisfaction
5. 68% leave because of poor attitude or indifference

Control what you can

The survey points out that salespeople have little control over the first four reasons why customers leave, which account for 32% of those that depart. But salespeople have complete control over at least 68% of the customers who leave.the reason

Here are nine critical skills that’ll help you, and your reps, establish and maintain the right attitude with your customers — and keep them from jumping ship:

1. Exceed expectations. Personalize your service. Instead of promising more than you can give, give more than you promise.
2. Always be available. Be there to serve customers whenever they need you to be there. The Internet has enabled companies to have a constant presence with their customers, “24/7.” Reliability and availability are vital. Make sure your customers know you are available on demand.
3. Customize how you serve. Find or develop solutions that fulfill your individual customers’ specific needs. Successful salespeople customize their business relationships with customers. They pride themselves on their one-on-one interactions. These salespeople value the differences in customer needs and respond with customized solutions.
4. Be easy to deal with. Make doing business with you easy and pleasurable. Assume the burden of relieving inevitable aggravations for your customers. Salespeople who exceed their customers’ expectations do so by creating hassle free experiences.
5. Put the customer first. Don’t wait for opportunities to present themselves. Seek them out. Give them more than they expect.
6. Resolve conflicts and solve problems. When conflicts arise, some salespeople have a tendency to deny them, debate them, shift responsibility for them, place blame for them, or hold their breath hoping they’ll go away. Top salespeople accept ownership of the problem, collaborate on a solution, and take on the burden of finding a resolution regardless of fault.
7. Handle complaints. Complaints usually have some validity and can be an “early warning system” of conflict on the horizon. When you view complaints this way, they can become your ally, helping you resolve problems and minimize their impact. Complaints that go unattended may evolve into conflicts that could have been avoided.
8. Communicate constantly. Ask questions that spur dialogue. The more the customer talks, the more you’ll learn. Continue questioning until you understand and have uncovered all the information required to proceed. Try to avoid jumping to conclusions with customers.
9. Remember nonverbal communication. When communicating with customers, observe their non-verbal signals. Take note of their body language, appearance and posture. Look for signs of distraction. Pay attention to their facial expressions and eye contact. Listen to the tone of their voice as a means for understanding what they may be feeling.

Adapted from the book How You Do … What You Do: Create Service Excellence That Wins Clients for Life by Bob Livingston, CEO of REL Communications, a sales consulting group.

In The Little Teal Book of Trust, Sales expert Jeffrey Gitomer offers this 10-point “trusted advisor” checklist as a way for reps to ensure they always stay on target:

1. Trusted advisors are value providers, not suppliers.
2. Trusted advisors focus on building business, not just closing it.
3. Trusted advisors consistently provide buyers with valuable info.
4. Trusted advisors make decisions based on what’s best for the customer’s business, not their own.
5. Trusted advisors are empowered by their customers to take action on their behalf.
6. Trusted advisors look for ways to get more face time with buyers.
7. Trusted advisors look for ways to help buyers increase profits.
8. Trusted advisors put the relationship first, quota second.
9. Trusted advisors attend industry seminars and conferences so they can be considered experts.
10. Trusted advisors speak in terms of long-term value, not price.

Source: The Little Teal Book of Trust by Jeffrey Gitomer.

1. Engage buyers. “Emotionally satisfied” customers of a major credit card company increased their spending 67% over a 12-month period (as opposed to 8% for average customers), according to a 2010 study.

Reason: Most customers claimed they were willing to spend more because they felt they were dealing with a company that had their best interests at heart. In other words they gave customers “emotional satisfaction.”

Sales organizations with the highest levels of emotional satisfaction:

• maintain a constant cycle of contact (via email, phone or in person) between salesperson and customer, so buyers feel like they have a go-to contact who’s personally responsible for handling their needs
• offer rewards and incentives to buyers who increase the volume and frequency of purchases, and
• encourage consistent feedback via online surveys, social media and one-on-one interviews.

2. Pursue high-probability prospects. As part of a new study, Gallup Press researchers asked a number of sales managers why reps with a certain degree of ability still weren’t closing at the same rate as superstars.

The most common response: “They chase bad opportunities.”

Most supervisors pointed to the fact that subpar reps generally experience much longer sales cycles, because they insist on pursuing prospects who have no real intention of buying.

From a management perspective, one way to minimize this type of situation may be frontloading your pipeline with high-probability leads. Audit sales from the past two years to determine what type of prospects have the best chance of saying “yes” (i.e., SIC, title, industry, etc.). It may also be helpful to meet with reps prior to each sales call and ask what their goal is (in terms of moving the sale forward). Then follow up after the fact until you’re confident reps are consistently in the habit of moving the sale forward or moving on to better opportunities.

3. Use metrics to gauge value. In business, you can’t manage what you can’t measure.

Sales managers who excel at helping salespeople realize their potential do so by setting firm goals and following up on a regular basis.

The key is having strong metrics in place so you can quantify (and reward) progress, or adjust goals accordingly along the way.

Here are two underutilized metrics top sales managers use to gauge how successful reps are at adding value to every transaction:

• Average length of buyer relationships. This is perhaps the best way to assess how proficient salespeople are at adding value after the sale.
• Frequency of customer complaints. Most organizations don’t keep track of how often customers complain. But they do keep service records managers can access to determine the rate and severity of complaints attributed to specific salespeople. That type of evidence comes in handy when you’re trying to make a connection between top-notch service after the sale and long-term buyer relationships.
• Net volume per sale. Most sales organizations view sales in terms
  of gross revenue. But a closer look may reveal some interesting trends, including which reps are relying on concessions – rather than value – to close deals. These “dealmakers” may have higher closing rates, but they’re also bleeding your company’s profit margins dry.

Based in part on the book Strengths Based Selling by Tony Rutigliano and Brian Brim.

Cultivating loyalty in casual customers is a matter of getting the right message to the right people, at the right time.

That message also needs to be flexible enough that salespeople can customize it when necessary, in order to appeal to different types of customers.

Three tactics that can extend to any effort:

1. Create a consistent message that can be adapted. One way successful businesses are doing this is to create a series of templates for standard business purposes — so there’s a consistent look and feel to the documents. But those documents mix fixed content with areas that can be customized for customer personalization.

2. Get everyone on board. Customers don’t distinguish one department of your company from another. Every interaction customers have with your business is going to shape their experience — and the likelihood they’ll come back for more. This means, Sales, Service, Billing, IT all have to be on the same page.

3. Open internal communication channels. It’s important to make it easy for your internal departments to communicate with each other. It has to be more than one-way — there must be the capacity for question-and-answer and constructive dialog. Once again, remind people that in order to succeed, we’re all in this together and need to work as one.

1. Poor customer service

Far and away, customer service is the No. 1 reason customers flee to the competition. Smart companies place the highest premium on customer service.

The first step on the road to failure is often management’s insistence that customer service is a non-essential expense.

Think about it. It costs a lot less to keep existing customers happy and cultivate more business from them than it is does to go out and scrounge up new buyers from scratch.

2. Taking online comments too seriously

Too many companies look at the comments customers email them — or post on sites like Facebook and Twitter — and think they represent the opinions of the general public. Chances are, they don’t.

Buyers often use these sources anonymously to slam a product or company. That’s more of a public relations problem.

A few comments — good or bad — won’t tell you what expansive research will about your product or service.