MKT310- Ch.9 Expanding Customer Relationships

Main reasons why buyers complain:

(1) late delivery, (2) wrong order sent (e.g., too many, too few), (3) product performs poorly, or (4) nobody at the salesperson's company takes the buyer's problems seriously.

Key activities to building long-term relationships:

- Remembering the customer after the sale - Expediting orders and monitoring installation - Training customer personnel - Correcting billing errors - Resolving complaints

General procedures for handling complaints:

1. Build relationship to the point that the customer is comfortable complaining. 2. Listen carefully and get the whole story. 3. Ask the customer what he or she would like you to do. 4. Gain agreement on a solution. Tell the customer what you can do; do not focus on what you cannot do. 5. Take action; educate the customer so he or she has realistic expectations. 6. Follow through on all promises. Add value.

Three dimensions of customer service:

1. Communication(being the most important) 2. Resilience 3. Service motivation

Four Sequential Components of Effective Follow-Up

1. Interact 2. Connect 3. Know 4. Relate

Service Strategy

A plan in which a salesperson identifies his or her business and customers, what the customers want, and what is important to them.

Customer Relationship Management (CRM)

A system that dynamically links buyers and sellers into a rich communication network to establish and reinforce long-term, profitable relationships.

Communication

A two-way flow of information between salesperson and customer.

Collaborative Involvement

A way to build on buyer-salesperson relationships in which the buyer's organization and the salesperson's organization join together to improve an offering.

intranet

An organization's dedicated and proprietary computer network offering password-controlled access to people within and outside the organization (e.g., customers and suppliers).

Service Quality

Meeting and/or exceeding customer service expectations.

Critical encounters

Meetings in which the salesperson encourages the buyer to discuss tough issues, especially in areas where the salesperson's organization is providing less-than-satisfactory performance.

Extranet

Proprietary computer networks created by an organization for use by the organization's customers or suppliers and linked to the organization's internal systems, informational databases, and intranet.

service motivation

The desire of a salesperson to serve customers each day.

Resilience

The ability of a salesperson to get knocked down several times a day by a customer's verbal assault (i.e., complaint) and get right back up with a smile and ask for more.

Building goodwill

The process of converting new customers into lifetime customers by continually adding value to the product.

Adding value

The process of improving a product or service for the customer.

Interact

The salesperson acts to maximize the number of critical encounters with buyers in order to encourage effective dialogue and involvement between the salesperson and the buyer.

Relate

The salesperson applies relevant understanding and insight to create value-added interactions and generate relationships between the salesperson and buyer.

Know

The salesperson coordinates and interprets the information gathered through buyer-seller contact and collaboration to develop insight regarding the buyer's changing situation, needs, and expectations.

Connect

The salesperson maintains contact with the multiple individuals in the buying organization influencing purchase decisions and manages the various touch points the customer has in the selling organization to ensure consistency in communication.

In the context of customer complaints, which of the following companies is most likely to be rewarded with more satisfied customers and greater customer retention than others? a. A company that systematically monitors and addresses service failures b. A company that commits overly optimistic delivery dates c. A company that solely focuses on areas in which they provide satisfactory performance d. A company that encourages its salespeople to practice the hard sell e. A company that uses prospecting methods solely based on customers' preferences

a. A company that systematically monitors and addresses service failures

Which of the following is a disadvantage of a personal visit for post-sale follow-ups? a. It can be time consuming. b. It lacks the formality and effectiveness of e-mail communication. c. It lacks a mechanism for immediate feedback. d. It does not engage the customer. e. It does not provide the opportunity to read the customer's body language.

a. It can be time consuming.

Raoul, a salesperson at a jewelry store, is helping Michael choose an engagement ring. Michael has already mentioned his budget and explained his requirements to Raoul. Based on this information, Raoul prepares a list of suitable options from which Michael can choose. In this scenario, which of the following sequential components of effective salesperson follow-up is Raoul focusing on while preparing the list? a. Knowing the customer b. Networking with the customer c. Connecting with the customer d. Contacting the customer e. Practicing the hard sell with the customer

a. Knowing the customer

The term _____ refers to a two-way flow of information between a salesperson and a customer. a. communication b. resilience c. plasticity d. sales intervention e. customer observation

a. communication

The most difficult aspect of customer service is: a. the potential for inconsistency. b. managing critical encounters. c. training personnel for it. d. understanding customers' needs. e. the process of obtaining customer feedback.

a. the potential for inconsistency.

One of the most important things buyers look for in sellers is

accountability

It is unpleasant for a salesperson to inform a customer of a delay in product delivery. Which of the following is the most appropriate practice for the salesperson to follow when there is such a delay? a. Waiting until the promised delivery date to announce the delay b. Keeping the customer up-to-date on the delivery status c. Avoiding any contact with the customer until the product is ready to be delivered d. Focusing on other deliveries that are on time e. Cancelling the order and then informing the customer about it

b. Keeping the customer up-to-date on the delivery status

Selena works as a salesperson at a book store. She often has to deal with impatient customers who grumble when she takes a little extra time to find the books they have asked for. Despite having to deal with such customers, Selena always keeps a smile on her face and is polite to everyone. In the context of the three dimensions of customer service, it can be said that Selena exhibits _____. a. predictability b. resilience c. candor d. brevity e. accountability

b. resilience

Which of the following practices is a buyer-seller relationship enhancer? a. Focusing on short-term orders by the buyer b. Practicing the hard sell c. Adding value to the products offered to the buyer d. Using cold canvassing as a prospecting method e. Calling the buyer sporadically

c. Adding value to the products offered to the buyer

_____ refers to the process of converting new customers into lifetime customers by continually adding value to products. a. Prospecting b. Hard selling c. Building goodwill d. Market segmentation e. Social selling

c. Building goodwill

Which of the following statements is true of an organization's intranet? a. It can only be used by the organization's customers or suppliers. b. It can be accessed by all World Wide Web users. c. It is the organization's dedicated and proprietary computer network. d. It stores confidential information that can only be accessed by the organization's top management. e. It is freely accessible to people outside the organization.

c. It is the organization's dedicated and proprietary computer network.

When a post-sale customer complaint arises, the salesperson should: a. focus on closing new purchases. b. ignore the customer's concerns because post-sale complaints do not concern salespeople. c. accept responsibility and promptly fix the problem. d. leave it to others in the selling organization to resolve the problem. e. ask the customer close-ended questions to understand the details of the issue.

c. accept responsibility and promptly fix the problem.

Typically, traditional salespeople have been known to: a. practice post-sale follow-ups with customers. b. prioritize customer satisfaction over personal benefits. c. pass the blame when customer complaints arise. d. focus on earning commitment rather than closing a sale. e. focus on trust-building activities with customers.

c. pass the blame when customer complaints arise.

Which of the following statements is true of the three dimensions of customer service? a. A customer's reputation is one of the dimensions of customer service. b. Most problems in buyer-seller relationships arise because of the salesperson's resilience. c. A salesperson must treat difficult customers differently from other customers. d. Salespeople must be motivated to find time each day to deal with difficult customers. e. Risk reversal is the most important dimension of customer service.

d. Salespeople must be motivated to find time each day to deal with difficult customers.

An effective salesperson develops insight regarding the buyer's changing situation, needs, and expectations. In the context of the four sequential components of effective salesperson follow-up, this specific component is designed to: a. connect with customers. b. relate with customers. c. interact with customers. d. know customers. e. resolve customer issues.

d. know customers.

When listening to customer complaints, the salesperson must: a. discourage the customer from repeatedly making calls to report service issues. b. interrupt the customer early in the discussion to clarify details about the complaint. c. ensure that the customer provides a referral before addressing his or her complaint. d. let the customer know that he or she is happy the complaint was brought up. e. avoid showing empathy toward the customer as it would be considered unprofessional behavior.

d. let the customer know that he or she is happy the complaint was brought up.

Ultimately, _____ must determine how to position their company in the market to differentiate its products and services. a. creditors b. owners c. competitors d. salespeople e. investors

d. salespeople

An example of a company's attempt to expand collaborative involvement is: a. lowering the prices of its products. b. minimizing the number of critical encounters with customers. c. minimizing social engagements with its customers. d. adopting traditional selling methods. e. conducting brainstorming sessions with customers.

e. conducting brainstorming sessions with customers.

In the context of resolving complaints, if customers have unrealistic expectations of the services provided, the salesperson should: a. refrain from any further critical encounters with the customers. b. force his or her team to fulfil the customers' demand. c. make use of the opportunity to get referrals from the customers. d. shift the customers' focus to a new purchase. e. educate the customers so that they have practical expectations.

e. educate the customers so that they have practical expectations.

The term _____ refers to meeting and/or exceeding customer service expectations. a. strategic alliance b. service divergence c. collaborative involvement d. contractionary service e. service quality

e. service quality

Susan is a sales representative for an industrial chemical company. Over the next few months, Susan plans to have chemists from her company's research and development (R&D) department meet her customer's technicians to discuss the customization of certain products supplied by her company. Susan is most likely adopting this strategy because she wants: a. the employees from the R&D department to handle post-sale complaints in the future. b. to adopt traditional selling methods. c. to focus on short-term business deals with her customers. d. to shift the focus of her customers toward making new purchases. e. to expand the collaborative involvement between her company and her customers.

e. to expand the collaborative involvement between her company and her customers.