Paying Attention to Your Customer is Good Business

When a sale is lost, it’s often blamed on the competition… “They offered a better price or their product beat the pants off of us.” Right?

Wrong!

by Timothy F. Bednarz, PhD

The Forum Corporation recently published a survey of why customers stop buying from a vendor and the results might just surprise you. The number one reason that customers stop buying is poor service or a lack of attention (65%).

The traditional excuses such as a cheaper price (15%) and a better product (15%) only add up to thirty percent (30%).

Implications to the Sales Person

The bottom line is that paying attention to the customer is critical to your existing business and commission base. Harvard Business School released a recent survey which indicated customer retention is profitable.

The old rule of thumb was all businesses lose 10% of their business every year. Harvard discovered a retention of 2% of the 10% annual loss is comparable to a 10% increase in profitability.

The impact on the individual sales person can be significant. By increasing the level of customer service and support you will be stabilizing your commissions. New orders will expand your base rather than replace lost commissions. When compounded over several years, you will see a dramatic overall increase in your sales income.

The secondary impact is the expansion of existing business. Sales people often fail to look at the easiest place to develop new business. They fail to examine other opportunities which exist with happy customers. Additional opportunities for new and existing business become readily apparent as time is spent servicing an existing account.

The Application

The greatest fear voiced by many customers is the sales person will disappear immediately after the sale has been made. This has been fueled by the vast number of sales people who focus on their own needs and the sale. Once the sale has been made, they quickly move on to the next prospect without looking back or communicating with their new customer. Problems and broken promises are left to others.

Minimize these fears by focusing on the customer. Realize their sale begins once they have made a commitment to purchase your product or service. It is critical to be highly visible immediately after the sale, during the delivery, installation and training phases of your sales contract.

As a product expert, continually revisit the customer to assure they are taking advantage of all the features of your product and service. Educate them as to the best uses and applications. Make sure their investment in your product has been maximized. Assure the value you have promised during the sale has been delivered and acknowledged by the customer.

Something to Think About

In developing a strong customer focus and commitment to the development of strong customer retention:

· How do you treat the customer once the sale is made?

· Determine ways you can increase your visibility to new and existing customers.

· Determine ways to show your customers you appreciate their business and not to take them for granted.

Copyright ©2000 by Timothy F. Bednarz,PhD All Rights Reserved
Timothy F. Bednarz, PhD is the Principal Partner of the American Management Development Group. He can be reached at 800.654-4935 or [email protected]. Find out more at http://www.LetsTalkSelling.com.

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