Relationship Selling Ppt 4h651f

Introduction to Relationship Selling Divyanth Bhavana Himavan Zubair Sri Krishna 1-1

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

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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 customeroriented • Exhibit a customer mindset 1-3

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 1-4

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

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INTRODUCTION TO RELATIONSHIP SELLING

INNOVATION

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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 Source: John R. Graham, “Think Like a Customer – Or Lose the Sale, “American Salesman (January 2002), p.3.

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McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

INTRODUCTION TO RELATIONSHIP SELLING

INNOVATION

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Want to Think Like a Customer? Mistakes to Avoid Always • • •

Making the sale the goal Giving too many or too few options Writing off the customer too soon

Source: John R. Graham, “Think Like a Customer – Or Lose the Sale, “American Salesman (January 2002), p.3.

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McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

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 1-8

INTRODUCTION TO RELATIONSHIP SELLING

EXHIBIT

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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

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Traditional selling

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 followup • Self-management 1-10

INTRODUCTION TO RELATIONSHIP SELLING

INNOVATION

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The Importance of Follow-up

• Attrition for first-year s is more than twice that of long term s due to: • • •

Early problems that sour the relationship No formal servicing system Communication breakdowns

• Avoid the early break-up by: • • •

Saying thank-you Seeking early Responding quickly

Source: Erin Strout and Michael Weinreb, “Please Come Again,” Sales and Marketing Management (February 2003), pp. 47-48.

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McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

INTRODUCTION TO RELATIONSHIP SELLING

EXHIBIT

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Components of the Internal Environment Goals, objectives, culture

R&D and technological capabilities

Personnel The Firm The Custome r

Service capabilities

Financial resources

Production and supplychain capabilities 1-12

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 1-13

INTRODUCTION TO RELATIONSHIP SELLING

EXHIBIT

1.5

Components of the External Environment Legal and political

Economic

The Firm The Custome r

Natural

Technological

Social and cultural 1-14