1. Direct Professional Services
“Service Sells”
Increasing Sales Through Developing Customer Loyalty
David P. Scurlock
copyright 2011
2. D.P.S. Inc.
David P. Scurlock
25 plus years of experience in sales/service related
industries.
*Corporate business units, independent dealers, field
based operations, industry associations.
*Business to business and business to consumer sales
and customers interactions.
Industries include office products/automation, graphic arts, water
treatment, in home service providers, supply chain and delivery
operations.
3. D.P.S. Inc.
David P. Scurlock
Sales success was directly related to service
experience customer had. Service experience was
key in developing continuing business relationships.
(additional products/services or references.
Extensive experience in Learning and
Organizational Development.
– Sales and Product Training
– Supervisory, Management, Leadership Development
– Internationally recognized certifications
4. Why is a focus on service
D.P.S. Inc.
support important? Market Pressures
Products are homogenous
Technology is leveling the playing field
Lots of information available
Customer service is the difference and a link to
loyalty.
5. Why is a focus on service
D.P.S. Inc.
support important? Market Pressures
Customers are expecting faster resolution
times.
Shrinking product-based profit margins are
spurring the need for service-based revenue
growth.
Customer service has become a competitive
trump card.
6. U.S. Office of Consumer
D.P.S. Inc.
Affairs Findings – The Business Metrics
For every unsatisfied customer who
complains, 26 other unhappy customers say
nothing. And of those 26, 24 won’t come
back!
Each customer that experiences a problem
will tell 9 or 10 people about it.
– Social media has increased the impact of this!
7. U.S. Office of Consumer
D.P.S. Inc.
Affairs Findings - The Business Metrics
Of the customers who register a complaint,
between 54 and 70 percent will do business
again with the organization if their
complaints are resolved. That figure goes
up to a staggering 95 percent if customers
feel that complaints are resolved quickly!
Service personal/technicians are on the
front line to address these opportunities.
8. D.P.S. Inc.
Focus on Customer Loyalty
Customer satisfaction alone won’t do!
Customer satisfaction does not equal
customer loyalty!
9. The Loyalty Effect*
D.P.S. Inc.
Central gauge that integrates
all dimensions of business and
measures how well company is creating
value for it’s customers.
* Fred Recheld The Ultimate Question
10. D.P.S. Inc.
True Customer Loyalty
Customer Loyalty measures the
emotional attachment
that a customer has with your
product/service/organization.
That attachment is created through
relationships developed by your employees.
12. D.P.S. Inc.
The Value Proposition
Developing customer loyalty in today’s competitive
markets has tangible financial benefits to the business.
In a study conducted by the Aberdeen Group a research
firm 61% of companies polled said that field service is a
strategic operation with revenue and profit goals.
A well trained and managed service group can
generate revenue and bottom line profits to the organization.
13. D.P.S. Inc.
The Value Proposition
Developing customer loyalty in today’s competitive
markets has tangible financial benefits to the business.
In a study conducted by the Aberdeen Group a research
firm 61% of companies polled said that field service is a
strategic operation with revenue and profit goals.
A well trained and managed service group can
generate revenue and bottom line profits to the organization.
14. D.P.S. Inc.
The Value Proposition
Keeping 2% of existing customers impacts
profits the same as reducing cost by 10%!
Keeping 5% of existing customers can
increase profits 25% to 125%!!!
61% of companies polled by the Aberdeen
Group said that field service is a strategic
operation with revenue and profit goals.
15. D.P.S. Inc.
Activity One – Core Services
Core services are the fundamental products
and services that your organization or work
teams provide to your customers.
The reason you are in business.
16. Questions to answer about
D.P.S. Inc.
your customer base
What do they want?
What do they like about your offer?
What can be improved?
Why do they go to the competitor?
17. D.P.S. Inc.
What Customers Expect
Process
Execution
– Predictable
– Repeatable
Empower them with information
First Time Resolutions
18. D.P.S. Inc.
Satisfaction – Dissatisfaction Model
Satisfaction High
Customer Loyalty
Zone of Indifference exist in this area
High
Dissatisfaction
Service providers need to understand how to
move customers to a level of high satisfaction
19. Deepen the relationship with
D.P.S. Inc.
customers
Satisfaction Loyalty
Expected Over time
Price driven Non-financial
Short term Non-tangible
One experience can “make
or break”
20. D.P.S. Inc.
Developing Customer Loyalty
Moving a customer to a high degree of
satisfaction from the zone of indifference.
Customer loyalty has to be built on an
individual basis one customer at a time.
At each “moment of truth” customers
compare/contrast their perception to what
actually happen.
20
21. D.P.S. Inc.
Developing Customer Loyalty
A Greatly Exceed
B Exceed
C Meet
D Disappointed
Fail
F
Expectations Perceptions
22. D.P.S. Inc.
Developing Customer Loyalty
If the customers perceptions exceed their
expectations customers are highly satisfied and
develop loyalty.
If their perceptions are about equal the customers
are neither satisfied or dissatisfied. They are
somewhere in the zone of indifference.
If their perceptions are below expectations
customers move to a degree of dissatisfaction
resulting in disloyalty.
23. Influencing Customer
D.P.S. Inc.
Satisfaction/Loyalty
Customer satisfaction can be influenced in
four ways.
1. Influence the customers expectations.
2. Influence the perceptions of your service.
3. Influence what customers actually receive.
4. Concentrate efforts on improving those
things that customers really care about.
24. D.P.S. Inc.
Where are you today?
Do you know what your customers think of your
company?
– The level and quality of service.
– Their interactions with your employees.
Do you know what other needs or interest a
customer may have?
What do your employees think???
25. Activity Two
D.P.S. Inc.
Customer Service Assessment
Fifteen question assessment for managers,
employees and key customers to complete
to assess the perception provided by your
organization.
26. Activity Three-
D.P.S. Inc.
Moments of Truth Exercise
Moments of truth are the contact or touch
points that your customers come in contact
with some aspect of your business.
This activity has you and your employees
identify those moments of truth for your
customers.
27. Questions for the service and
D.P.S. Inc.
support groups.
Do you feel it is your job to sell additional
product and services?
Why or Why not?
What you can do?
How to accomplish.
28. copyright 2011
Direct Professional Services
Training the
Service/Support Personnel
to Sell!
29. Business value of service/support staff
D.P.S. Inc.
selling.
Increase the opportunity for customer
referrals, references, and additional business
as a result of the interactions between the
service technicians, service providers and
their customers.
Provide an outline of the steps that can be
used by service providers to enhance their
skills in communicating and interacting with
their customers.
30. Business value of service/support
D.P.S. Inc.
staff selling additional products
and services
Enhance the perception of your brand in the
eyes of the customers during the service
interaction.
Margins (post sale)
– 30% to 200% greater than product margins
– 25% of total revenue
– 50% of operating profits
31. D.P.S. Inc.
Time/Tension Relationship
Service Providers should understand to:
Recognize the relationship between relationship
tension and task or new opportunity tension that
exist during a service call.
Recognize how these tensions change over time.
Reduce the relationship tension in a way that
maximizes the opportunity for new business.
32. D.P.S. Inc.
Time/Tension Model
Re
l at
ion
sh
ip
Tension
Before Service Call
Task
or
u ni t y
p port
Ne wO
After service is completed
Time
33. Benefits of service and Support
D.P.S. Inc.
personal selling additional
products and services
Increased customer satisfaction as a result of the
quality and completeness of service performed.
Increased opportunities for additional business,
referrals, and references, as a result of increased
customer loyalty that has been establish.
All of these benefits/values are interrelated
which lead to increase sales and revenues
for the organization.
34. Customer Communications
D.P.S. Inc.
Defined
Interaction between service technicians,
service providers and customers.
Dialog with customers prior to performing
service.
Dialog with customers during service calls
(when possible and necessary).
Dialog with customers after completion of
service.
35. Effective Customer
D.P.S. Inc.
Communication
Service providers should understand :
Fundamentals of the consultative
communication process with customers.
How to decrease the customer’s relationship
tension while increasing their task tension.
How to move customers from the “zone of
indifference” to a level of high satisfaction.
36. D.P.S. Inc.
Hard Core Sales Techniques
True selling doesn’t start until someone
objects to something.
Ask for the sale at least three times.
Don’t take no for an answer.
37. D.P.S. Inc.
Sales Truths
People don’t want to be sold they want to make
informed buying decisions.
People buy the solutions or benefits not the
technical features of the product.
The cheapest price is not the number one reason
people make buying decisions.
– Convenience
– Peace of mind
– Function or performance
– Value for the dollars spent
38. Positive Sales Environment
D.P.S. Inc.
from a Service Perspective
Need Exist - Product not working
Desire to Address Need – They have called you.
Emotional State – Customer may be upset, highly
upset, or happy to see you.
Accepts Solutions that resolves need.
Creditability- customers trust technicians and
will listen to recommendations.
39. Creating A Positive Sales
D.P.S. Inc.
Environment
Starts with first contact with customer when they call or
come in.
Remember what the customer expects (slide 17)
Has the first point of contact been trained in the same
concepts being discussed here?
Are employee’s communicating customer information and
expectations correctly between themselves?
40. Creating A Positive Sales
D.P.S. Inc.
Environment
Acknowledge the emotional state that the
customer is in.
You didn’t cause it but you take the impact!
– Don’t take it personally
– Listen let them vent
You can diffuse the situation or ignite it by
what you do or don’t say.
41. The Consultative Sales
D.P.S. Inc.
Recommendation
Establish rapport
– Introduce yourself
– Use their name
– Respect their property
Take Action
– Confirm the repair (let them explain the situation even
if you know what the problem is)
– Complete service (explain what you did and
demonstrate that product is performing and answer any
questions customer may have)
Make recommendation for additional product or
service that will benefit the customer.
42. D.P.S. Inc.
PROTEC*
The key elements and steps associated with
providing a positive interaction with customers
Place yourself in the other’s shoe (show empathy)
Receive information (active listening skills)
Openly communicate (effective questions)
Take action (perform service)
Educate (recommend additional product/service)
Close the call (thank customer for their business)
Copyright 2012 David P Scurlock
43. D.P.S. Inc.
Empathy vs. Sympathy
Empathy - Can understand how a person feels,
places yourself in their shoes. Don’t necessarily
agree with person but you recognize it.
Sympathy – Experiencing the same emotion
feeling that the other person is experiencing.
Have empathy vs. sympathy in customer
situations.
44. D.P.S. Inc.
Receiving Information
Listening Skills
– Pivotal communication skill
– Key to internal communications between
employees.
– Key to developing emotional connection
between front-line employees and customers.
45. D.P.S. Inc.
Active Listening Skills
Hearing vs. Listening
Start with empathy (other’s shoes)
Do not react or take personally when the other
person is expressing their feelings and emotions.
Listen for the key message that person is sending or
expressing.
Restate in your own words what the other person
has stated.
Confirm that the other person agrees with your
understanding.
46. D.P.S. Inc.
Openly Communicate
After listening to customer restate in your
words what you heard and understand.
If necessary ask additional questions
Explain what you are going to do.
47. D.P.S. Inc.
Take Action
Complete the repair or service originally
called for in a professional manner.
Determine what additional offers you can
make.
– Review records that you have
• Other product that may require maintenance.
• Check up’s that you might perform while there.
• Products that will improve the performance or life
of the equipment.
48. D.P.S. Inc. Educate the Customer
Explain to customer what else you can offer them
during your visit.
– Use any visuals or job aids that you may have. (many
times you can provide these to customer while you are completing repair.
It keeps them occupied while you are working)
Wait for them to respond (many times they will have a
question or statement)
– Respond to their question.
• (many of my other customer’s have taken advantage of ………… and
found ……………..
– If they say “no” thank them for the business they have
given us. Leave any information that will allow them to
make decision in future.
49. D.P.S. Inc.
Close the call
Thank the customer for the opportunity to
provide service /support for them.
50. Steps to New Business
D.P.S. Inc.
Development
Determine what products and services that
you have availability to sell.
– Outline the major features and advantages of
the products and services
– Outline the major customer benefits.
– Place on a reference sheet to refer to and to
share with a customer.
51. Steps to New Business
D.P.S. Inc.
Development
Determine the target market and customers
that you want to develop new business
from.
– Additional products or services to existing
customers
– New leads or referrals from current customers
– Offer an incentive to customers.
– Develop a marketing or awareness plan.
52. Steps to New Business
D.P.S. Inc.
Development
Determine incentive for service technicians
– Cash
– Points that can be converted for prizes or gifts
Determine how process will work.
– Bring referrals back to office
– Close on the spot
Have a meeting to review all aspects of program.
– Include sales, operations and admin in meeting.
53. Activity Four – New Business
D.P.S. Inc.
Development Worksheet
Exercise to develop a marketing strategy or
customer awareness program.
Identify the features, advantages and
customer benefits of each or your products
and services.
54. copyright 2011
When Things Go Wrong !
Direct Professional Services
Service Recovery
55. Service Recovery as a
D.P.S. Inc.
Business Opportunity
Service Recovery- returning an upset
customer to a satisfied state and better yet to
a very satisfied state.
(high degree of loyalty)
Create a situation that leads to additional
business, referrals or references.
56. D.P.S. Inc.
Service Recovery
Listen to the concerns of the customer
Listen to what the customer wants.
Make it easy for the customer to resolve
their concern.
One size solution doesn’t fits all
57. The Four Steps of
D.P.S. Inc.
Service Recovery
Apologize sincerely- don’t become
defensive or make excuses. Show empathy.
Fix the problem- Listen, empathize, and
ask open-ended questions that allow the
customer to express what they really want.
Act quickly with a sense of urgency
58. The Four Steps of
D.P.S. Inc.
Service Recovery
Do something extra as atonement- does not
have to be expensive or elaborate. Show the
customer that you appreciate their business, you’re
sorry for what happen, and you want to add value
to the relationship.
Follow up- A call from management or the
service person to ensure that the customer is
satisfied.
59. Exercise Five-
D.P.S. Inc. Service Recovery
What was a recent customer service situation that
you (your company) faced?
Was it the results or the process that the customer
was upset with?
How was it resolved? Was a process put in place
for future situations? (planned recovery)
60. copyright 2011
Direct Professional Services
Process to Implement a
Training Program.
61. D.P.S. Inc.
Process
Start with business focused metrics
– Additional sales or services
– Increase first time resolutions
– New business
– Conduct assessment of current skills of
employees.
– Identify skill gaps and training opportunities
62. D.P.S. Inc.
Process
Provide training in manageable ‘bytes”
Just-in-time vs. Just-in-Case
Create real world environments/situations
Measure short term results
Celebrate successes!!!
Reinforce in the field.
63. D.P.S. Inc.
Good Luck and Thank You
For more information on developing a
customized training program for your business
contact:
David P. Scurlock
847-340-3874
Notas del editor
Copyright DPS 2004
Copyright DPS 2004
Customer service can make a difference in establishing customer loyalty. Copyright DPS 2004
These are the key questions that will help determine if what your company is offering and what your employees are doing are helping to create customer loyalty. Copyright DPS 2004
This is the “operational” or “functional” definition of customer loyalty. Copyright DPS 2004
As more loyalty customers are created there are other benefit that can impact your organization. Copyright DPS 2004
When surveyed and the information is “distilled” customers expect the following. Copyright DPS 2004
This diagram illustrates that many customers are neither highly satisfied or highly dissatisfied but somewhere in between. This is referred as the zone of indifference. These customers don’t have a high degree of loyalty, they are subject to next best deal that might be out there. Understanding how to move the right customers to the high degree of satisfaction which leads to customer loyalty is the key. Copyright DPS 2004
This describes what a formal sales process entails and many times is the perception that techs have of sales. Copyright DPS 2004
This points out what is true today with how people buy. Research proves these to be true. Copyright DPS 2004
This is the environment that our technicians are usually going into. If approached correctly many service calls will result in sales opportunities. Every situation will not result in a sale but the conditions will exist for the technician to make a recommendation. Copyright DPS 2004
When things go wrong and terribly wrong and a a root cause analysis is done a breakdown in one of these areas take place. So a good sales training program should start with all employees that handle a customer transaction. Copyright DPS 2004
This explains what the technician should do especially when first approaching and interacting with the customer. This first 60 seconds of interacting with the customer can make or break how the rest of the call will go. Copyright DPS 2004
Here is the process that should be used on every call that will create the best environment or situation for the technician to make a positive recommendation to the customer that they will accept. Copyright DPS 2004
This explains the difference between understanding how a customer feels vs. having sympathy for the customer. Having sympathy entails agreeing with the customer and sharing the same emotion which can intensify the emotion the customer is feeling. The idea is to minimize or dis-fuse the emotion so that the facts of the situation or problem can be dealt with in a rational and efficient manner. Copyright DPS 2004
For existing employees the one pivotal skill that can have the greatest impact on communication between employees and customers is listening skills. This will ultimately lead to the emotional connection between customers and your company.. Copyright DPS 2004
Here is what is meant by active listening. It is a skill that can be taught. Copyright DPS 2004
Follow established procedures for completing the repair. Know ahead of time from your records or through observation or discussion with the customer what you can offer. Continuous product training and updates from manufactures, suppliers and other resources. Copyright DPS 2004
This is the process that technicians should use to make recommendations to customers. If the technicians are able to engage the customer in a conversation during or as they complete the repair the transition to the recommendation will be easier and more natural. This is not always possible due to the nature of the repair or the fact the customer may be somewhere else. Once the repair is complete explaining what was done, showing the customer that the product is working properly and answering any questions creates a conversation that can lead the making the recommendation. We are talking about an additional two to three minutes at the end of the call…not adding a lot of additional time to the call. Copyright DPS 2004
Keys to service recovery. When properly executed service recovery can move a customer from the zone of indifference or potential dissatisfaction to a high degree of satisfaction and loyalty. This process should be well defined for your business and all employees should be trained in the process and steps outlined on the next two slides. Copyright DPS 2004