HA405 : The Class : After-Sale : Service : Online Lesson

P3, S6, T2

TABLE OF CONTENTS

A. INTRODUCTION

B. DISCUSSION

First, we will discuss managing After-Sale Service through the "Implementation" step of the after-sale service process. We will build upon concepts learned in Part I and introduce the "Motivation Dip." This will be followed by three strategies for managing during this step.

Second, we will discuss managing After-Sale Service through the "Maintenance and Development" step of the after-sale service process. We will offer six strategies for managing during this step.

C. SUMMARY

D. REFERENCES

INTRODUCTION

We left Part I of this article with a discussion in Exhibit 3 of the different perspectives of the POST-SALE PHASE (the After-Sale Service Process). We commented on perspectives from both: (a) Sellers and (b) Buyers. In Part II of this article, we will use these concepts and put them into practical terms. We will answer the question, "What strategies can a salesperson use to ensure effective "After-Sale Service?"

Managing After-Sale Service During "Implementation" (Step One)

As discussed in the previous article, customers have three distinctive stages of perspective during "Implementation of the Product/Service" step of the "after-sale service process:" (a) The Novelty Stage, (b) the Learning Stage, and (c) the Effectiveness Stage. Sellers must be aware of and have strategies to manage each of these stages. The most important stage to manage is the "Learning Stage" where the customer undergoes a concept called the "Motivation Dip."

The "Motivation Dip"

1. The Novelty Stage. As you might recall from Part I of this article, customers are very enthusiastic about a new product/service soon after purchasing it. They look forward to using it. Just after the purchasing decision and during the "Novelty " Stage," it's common for the customer to have high expectations and motivation toward the product/service. Thus, graphically, we could show this a line rising high on a graphed chart.

2. The Learning Stage. The "Motivation Dip" refers to a sharp decrease in the customer's enthusiasm or motivation during the "Learning Stage (the graphic line would plunge on the chart). As the customer enters the "Learning Stage," generally enthusiasm will rapidly drop off. This is phenomena is a fundamental part of psychology; enthusiasm is replaced by the realities of working harder (to learn about the product/service) and/or having more focus and concern about the success of the product's projected successful implementation and results.

3. The Effectiveness Stage. Once results begin to be realized (the "Effectiveness Stage"), the customer's enthusiasm and motivation will usually climb again to the levels of the "Novelty Stage."

An illustrative metaphor of the "motivation dip" is the enthusiasm of a New Year's resolution to "get into shape" through an extensive exercise program. Enthusiasm is often replaced by a "motivation dip" as the real work of the exercise program becomes a reality. After results start coming in the "Effectiveness Stage," (getting in shape), motivation climbs again. Effectiveness of the exercise efforts becomes the motivation driver.

Three Strategies for Handling the Motivation Dip During the "Implementation" Step

1. Strategy One: Start Before the Contract Is Signed. In the installation phase, an anxious customer will look critically for any sign that things are going wrong and may overreact to minor difficulties. The salesperson can look to the "Buying Process" to guide this strategy.

The salesperson can begin during the "Evaluation of Options" step in the buying process. The salesperson can make sure that the customer genuinely feels that the product service matches customer needs. In other words, ask enough questions and clearly and honestly demonstrate the product/service as compared to the competitive offerings.

During the "Resolution of Concerns" (negotiating buyer objections) step in the buying process, the salesperson can make sure that the customer fully recognizes and sees ALL potential consequences or concerns. These must be FULLY resolved or they will become a potential future concern that will exacerbate and accelerate the "motivation dip." For example, if the customer feels nervous about the salesperson's company's reputation, it is important to resolve the issue BEFORE signing of the contract, so it won't resurface in the form of negative reactions during the "implementation of product/service phase (Rackham, 1989)."

2. Strategy Two: Involve the Customer. Regardless of how carefully the installation and implementation of a new product/service, something will go wrong. While a detailed step-by-step installation plan is essential, it will not guarantee success or protect against unexpected problems. Build a detailed implementation plan and the customer will gain a comfort level. Making sure that the customer is involved in the construction of this plan will ensure their loyalty and satisfaction should any unexpected problems occur. After all, it's hard to "point the finger" at yourself.

Salespeople successfully implement when they get the customer to play a central role in the development of the implementation plan. Here the salesperson does not take the lead in designing the plan and plays the role of a "facilitator" who helps the customer improve upon their own implementation plan ideas.

3. Strategy Three: Put in Effort Early. Understanding that the customer generally goes through three stages during the implementation phase can help avoid the "motivation dip." Salespeople who don't understand make the mistake of interpreting the customer's enthusiasm during the "Novelty Stage" as a signal that all is well and that this "high" will continue in a positive way. Consequently, they give the customer less attention and fail to detect the "motivation dip" occurring in the "Learning Stage."

It's easier to anticipate and "prevent" problems before they occur than to deal with something that is quickly deteriorating at a rapid pace (accelerating "motivation dip"). It's easier and takes less time to prevent a fire, than to fight one. Early effort will not prevent the "motivation dip," however; it will minimize the steepness and severity of the decline.

Managing After-Sale Service During "Maintenance and Development" (Step Two)

Overview

The Maintenance and Development Step of the After-Sale Service Process begins after the customer has been guided through the "Implementation Step of the Product/Service Step." At this point, the salesperson has: (a) successfully obtained a signed contract and (b) successfully implemented the product/service.

The goal of Maintenance and Development is to continue the relationship with the customer and obtain repeat business (maintain the initial existing customer) and penetrate the customer account from referrals by the initial existing customer (develop).

In other words, there is a "recycling " back to the first step of the "buying process;" and, a new "sales cycle" begins. As previously discussed, the first step of the "buying process" is the "Recognition of Needs" phase. Obviously, with successful implementation in place and a strengthened "relationship" with the customer, the salesperson should have more familiarity with the customer this second time around with a more open dialogue with the customer during the crucial discovery of needs phase. "Maintenance and development of the customer" begins at the first phase of the "buying process."

Often after a first purchase, the customer doesn't seem to have immediate additional buying potential. Unsuccessful salespeople simply play a waiting game "maintaining" good relationships while passively waiting until circumstances change. Successful salespeople, on the other hand, take an active and dynamic approach by using their initial successful sale to penetrate or "develop" the customer account. They look for more areas within the account where their product/service may offer a solution. Generally, they use six strategies (Rack ham, 1989).

Six Strategies for Managing After-Sale Service During the Maintenance and Development Step

1. Strategy One: Maintain But Actively Develop. Salespeople can make new "Persuasive Sales Calls". Maintenance alone often results in visits, lunches and social chats. These actions are aimed at protecting existing business from competitors and to ensure that the customer keeps the seller "in-mind" should buying needs arise. Using only this strategy is generally ineffective.

Successful salespeople not only maintain their existing customer accounts, they actively look for new opportunities to penetrate within these accounts. Their objective is not "to protect" but" to project" or "to sell." By having an objective of "developing" during the course of "maintaining" their existing customers, successful salespeople not only will protect the account but also will obtain more sales from the account.

2. Strategy Two: Document the Good News. Salespeople can make "Reminder Sales Calls." Most of the time, the salesperson is in contact with the customer when things are going wrong. A better strategy is to remind the customer of the benefits that have come from the sale. Stay in contact with the customer when things are going right. Remember that customers keep a file on correspondence with the selling company. Imagine what a file would look like to a new decision maker at the customer company reading a file full of bad news. Shouldn't the good news be recorded?

Good news such as other satisfied customers can be forwarded "FYI" (for-your-interest) to your existing customer. Additionally, the salesperson can write to the customer outlining the positive and successful impact your product has had and offering any further help and assistance. When it's time for repurchase, the selling company is in a stronger position.

3. Strategy Three: Educate the Customer on New Developments. Salespeople can make "Informative Sales Calls." Related to "developing the customer account, the salesperson informs the customer of new product/services and changes within the industry or selling company. The long-term relationship between the customer and seller is further strengthened in this open sharing of information that affects both customer and seller.

4. Strategy Four: Web Activity Generate Referrals. Salespeople can make "Lead-Generation Sales Calls." Ironically, the more that the salesperson has satisfied the customer's needs, the less there is a need for an immediate repeat business from the existing customer. As mentioned above, the customer account can be further penetrated and also can be a source of referrals both internal and external to the existing customer. Satisfied customers are often delighted to help the salesperson. They can give contacts and introductions.

Remember that the "motivation dip" occurs during the second stage ("Learning Stage") of the implementation step, so referrals must be obtained early in the "Novelty Stage" or late in the "Effectiveness Stage."

5. Strategy Five: Rethink the Understanding of Customer Needs. Salespeople can make "Needs Assessment Sales Calls." Customer needs change. The salesperson should make periodic calls on the customer to reassess their understanding of the customer's needs. Remember that competitors are attempting to or are regularly assessing your customer's needs. They can take your existing account away by uncovering and developing needs that the salesperson has neglected. After all, didn't the salesperson also obtain or take away this existing customer from someone else?

6. Strategy Six: Influence Future Decision Criteria. Salespeople can make "Decision Criteria Sales Calls." Salespeople can help educate or refine the process by which the customer makes decisions. Perhaps the customer's level of sophistication is relatively low. Here the salesperson can facilitate the customer's learning of methodologies that help decide on optimal product/service solutions. If the customer is sophisticated, the salesperson can openly discuss decision criteria. This may be information gleaned that is useful to the salesperson and/or serve as a "sounding-board" and idea refinement for the customer. In all cases, the customer will see the salesperson as a consultant and partner in the relationship. This bond should lead to a stronger long-term relationship and increased repeat business, referrals, and customer account development.

SUMMARY

After-Sale Service is Never Static

As discussed, after-sale service strategies formally begin when the contract is signed. However, in anticipation of after-sale service, the salesperson sometimes initiates "preventative" strategies even before the contract is signed. After-sale service is intended to build long-term relationships with customers to ensure repeat business and referrals, but these relationships cannot automatically be assumed due to the initial sale; they are never static. They are either improving or decaying. What matters to customers is not what the salesperson did for them yesterday, although yesterday's success is a must. What matters is what the salesperson is doing for the customer today and tomorrow. The salesperson must never become complacent since complacency is an invitation to competitors. Good customer maintenance and development is about continuously improving service to the customer.

Part I and Part II of this Article are Integrated

The goal of Consultative Salespeople is the acquisition and maintenance & development of customers. A successful consultative salesperson today needs to fully understand both the underlying concepts of effective "After-Sale Service" and efficient and effective strategies to implement this service. After-Sale Service processes drive long-term relationships and these relationships lead to repeat business, referral business, and, at their most cultivated state, to partnerships, alliances and preferred suppliers.

1. In Part I, we discussed concepts. We described and presented models of the differences between consultative selling of complex products/services and traditional selling of transactional/simpler products/services. We ended Part I with an illustrative "capstone" example of a hotel selling consultatively to a meeting planner.(Revisit Part I)

2. In Part II (Above), we translated the Part I concepts into practical strategies. These strategies do not purport to be inclusive of all possible, however they offer a guide to salespeople wishing to significantly improve the effectiveness of their After-Sale Service efforts.

REFERENCES

Rackham, Neil. (1989). Major Account Sales Strategy. New York: McGraw Hill.

Once you have finished you should:

Go back to Topic 2: After-Sale Service Processes - Strategies

Send E-mail to Richard G McNeill Ed.D., CHME
or call (520) 523-1713

Copyright © 1999 Northern Arizona University
ALL RIGHTS RESERVED