Introduction to Relationship Selling 1-1 INTRODUCTION TO RELATIONSHIP SELLING Learning Objectives • Identify and define the concept of relationship selling • Understand the importance of.
Download ReportTranscript Introduction to Relationship Selling 1-1 INTRODUCTION TO RELATIONSHIP SELLING Learning Objectives • Identify and define the concept of relationship selling • Understand the importance of.
1-1
1
Introduction to Relationship Selling
1-2 INTRODUCTION TO RELATIONSHIP SELLING
Learning Objectives
• Identify and define the concept of relationship selling • Understand the importance of a customer-centric organization • Explain why value is a central theme in relationship selling • Identify the processes involved in relationship selling • Identify the elements in managing relationship selling • Discuss and give examples of the elements of the external and internal environment for relationship selling
1-3 INTRODUCTION TO RELATIONSHIP SELLING A Model for Relationship Selling and Sales Management -
Overview
Firms successful at relationship selling and sales management: • Are customer-centric • Are highly customer oriented • Exhibit a customer mindset
1-4 INTRODUCTION TO RELATIONSHIP SELLING
Customer Orientation
Firms that have a high level of customer orientation: • Focus on understanding customers’ requirements • Generate an organization-wide understanding of the marketplace • Respond effectively with innovative products and services
INTRODUCTION TO RELATIONSHIP SELLING
EXHIBIT 1.1
Test Your Customer Mindset
External Customer Mindset I must understand the needs of my company's customers It is critical to provide value to my company's customers I am primarily interested in satisfying my company's customers I must understand who buys my company's products/services I can perform my job better if I understand the needs of my company's customer Understanding my company's customers will help me do my job better Source: Karen Norman Kennedy, Felicia G. Lassk, and Jerry R. Goolsby, “Customer Mind-Set of Employees Throughout the Organization,” Journal of the Academy of Marketing Science 30 (Spring 2002), pp. 159-71.
1-5
INTRODUCTION TO RELATIONSHIP SELLING
EXHIBIT 1.1
Test Your Customer Mindset
Internal Customer Mindset Employees who receive my work are my customers Meeting the needs of employees who receive my work is critical to doing a good job It is important to receive feedback from employees who receive my work I focus on the requirements of the person who receives my work
TOTAL
(Higher total suggests greater customer mindset)
Source: Karen Norman Kennedy, Felicia G. Lassk, and Jerry R. Goolsby, “Customer Mind-Set of Employees Throughout the Organization,” Journal of the Academy of Marketing Science 30 (Spring 2002), pp. 159-71.
1-6
1-7 INTRODUCTION TO RELATIONSHIP SELLING A Model for Relationship Selling and Sales Management -
The Customer
• The customer is at the center of the model • Return on customer investment • Lifetime value of a customer
INTRODUCTION TO RELATIONSHIP SELLING
INNOVATION 1.1
Want to Think Like a Customer? Mistakes to Avoid
Always
1. Doing it
your
way, not the customer’s way 2. Focusing on
your
objectives, not the customer’s 3. Pushing for a client meeting as though it is the end game 4. Pushing the customer 5. Failing to
listen
1-8 Source: John R. Graham, “Think Like a Customer – Or Lose the Sale, “
American Salesman
(January 2002), p.3.
McGraw Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
INTRODUCTION TO RELATIONSHIP SELLING
INNOVATION 1.1
• • • • Want to Think Like a Customer? Mistakes to Avoid
Always
Keeping your sales strategy
secret
Making the
sale
the goal Giving too many or too few options Writing off the customer too soon 1-9 Source: John R. Graham, “Think Like a Customer – Or Lose the Sale, “
American Salesman
(January 2002), p.3.
McGraw Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1-10 INTRODUCTION TO RELATIONSHIP SELLING A Model for Relationship Selling and Sales Management –
Value Creation
•
Value
is the bundle of benefits the customer derives from a purchase • Give-get ratio •
Value creation
- adding value for a customer beyond an isolated transaction
INTRODUCTION TO RELATIONSHIP SELLING
EXHIBIT 1.3
Time Investment in Each Stage of the Sale
Developing an understanding of the buyer’s needs
Value-added selling
Presenting your solution Closing the sale
Traditional selling
1-11
1-12 INTRODUCTION TO RELATIONSHIP SELLING A Model for Relationship Selling and Sales Management –
Relationship Selling
Process elements of relationship selling: • Using information • Communicating the sales message • Negotiating for win-win solutions • Closing the sale and follow up • Self-management
INTRODUCTION TO RELATIONSHIP SELLING
INNOVATION 1.3
The Importance of Follow-up • Attrition for first-year accounts is more than • • • twice that of long term accounts due to: Early problems that sour the relationship No formal servicing system Communication breakdowns 1-13 • Avoid the early break-up by: • Saying thank-you • • Seeking feedback early Responding quickly Source: Erin Strout and Michael Weinreb, “Please Come Again,”
Sales and Marketing Management
(February 2003), pp. 47-48.
McGraw Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
INTRODUCTION TO RELATIONSHIP SELLING
EXHIBIT 1.4
Components of the Internal Environment
Goals, objectives, culture R&D and technological capabilities The Firm Personnel The Custome r Service capabilities Financial resources Production and supply chain capabilities 1-14
1-15 INTRODUCTION TO RELATIONSHIP SELLING
Internal Environment
Southwest Airlines' corporate environment • Places the employee at the center of its business model • Promotes fun • Hires people by “tryouts” • Lends itself to a favorable service culture
INTRODUCTION TO RELATIONSHIP SELLING
EXHIBIT 1.5
Components of the External Environment
Economic Legal and political The Firm The Custome r Natural Technological Social and cultural 1-16