Tuesday, November 10, 2009

Sales And Marketing Communications: Customer Service Letters

It is not an overstatement to say that most of us can readily recount our first-hand experiences with bad customer service without much thinking. Unfortunately, poor customer support is so pervasive, that even lackluster support shines in comparison.

That said, excellent Customer Service starts with customer contact employees having the skill and motivation to understand customer wants and needs. This takes some effort and is not as simple as merely having a sympathetic ear.

Of course, when customers have a problem, sympathy may be an appropriate "ice-breaker"; however, at best, being sympathetic only goes so far. In the end, customers are looking for understanding and options for an acceptable solution. For a customer service employee, this means being a good listener and expressing a proactive attitude for the customer and their problem.

Customer Service situations can arise from phone calls, referrals, or written inquiries. But regardless of how they are initiated, the solution should be detailed in writing.

Formal letters and email are the acceptable ways to respond to customer issues in that they provide a paper trail for future reference. Conversely, phone responses should only be used to answer routine inquiries.

Once you have received the inquiry, here are ten basic Customer Service Principles you will want to remember as you prepare your response:

1. Acknowledge the inquiry within a day or two of receiving it.

Granted, you may not have a resolution in such a short time, but at the very least the inquiry deserves a quick acknowledgment as an interim reply.

2. Be personable and use a tone that makes the customer feel valued.

Remember to be polite and respectful, making sure your words express a helpful attitude.

3. Clearly summarize the problem as expressed by the customer.

Restate the situation using the customer's words. High emotions may be at play, so be careful not to minimize the customer's take on the situation by substituting your words for theirs.

4. Spell out in detail what your analysis of the problem has discovered.

Be as detailed as possible without getting too technical or "geeky". Customers who don't understand what you are saying will think you are trying to confuse them.

5. If the customer is in error, fully explain the error.

Sometimes the customer isn't always right. Just the same, it may be a good idea to probe and find out the reason for the mis-perception.

6. Should the customer have a legitimate problem, admit it and thank them for bringing it to your attention.

Be sincere and gracious with these situations. Granted, some customers may delight in playing the "gotcha" game, but a skilled customer service person always strive for a win-win solution without resorting to gamesmanship.

7. Offer solutions that are creative, workable and mutually acceptable.

Be careful not to hide behind company policy when suggesting solutions. Nothing will undo customer goodwill faster than customer support that is "by the book" and inflexible.

8. Provide contact information in the event of any additional questions or concerns.

Make it easy for the customer to reach you. A direct address is a must, but also make sure you provide your direct business phone number and business email address.

9. Thank them for their continued business.

This may sound trite, but no customer wants to be taken for granted. Be aware that when customers feel this way, they are more apt to explore and entertain other options.

10. Follow up to ensure the problem has been resolved.

Keep in touch with the customer by following up after a week, month, or some other appropriate time frame. This not only demonstrates a proactive attitude, but also a willingness to maintain an on-going relationship with the customer.

It goes without saying that customers are the life blood of any business. And few companies can afford to alienate their customers with poor Account Management. The upshot is that it is critical that all customer service employees be committed to providing professional customer support. Anything less is a business liability.

Jack

Tuesday, November 03, 2009

Sales And Marketing Communications: Price Lists, Quotes and Bids

Estimates and Proposals are among the most common types of Sales Communications, yet they are not the only ways businesses communicate pricing information to prospects and customers. In this regard, many sellers are just as apt to use Price Lists, Quotes and Bids for this purpose.

As was presented in the previous Posting, estimates and proposals consist of agreed upon terms and pricing tailored for a specific prospect or customer. On the other hand, Price Lists and Quotes are mostly static and reflect a seller's fixed prices for goods and services without regard to specific customer wants and needs.

Apart from these types of communications are Bids. Similar to proposals, a bid is usually submitted as an entry in a competitive process. By their nature, Bids tend to be fluid in that terms and pricing and may be adjusted, per customer request, as a result of the bidding process.

Obviously, discounts and inducements can affect fixed prices; however, once the customer formally accepts a Quote or a Bid, it is usually a binding a commitment for both the seller and customer. That said, it is important that sellers make every effort to ensure their Quote or Bid is realistic, profitable and "doable" if accepted.

Which type of communication is best depends on the situation. For companies selling "off-the-shelf" products and services, Price Lists and Quotes may suffice for initial sales inquiries. Of course, any effective sales professional will probe the inquiry and offer to submit an estimate or formal proposal as a follow-up.

By the same token, companies selling specialized products and services in a competitive market should always be amenable to submitting Bids. Though sometimes a protracted process, bidding does provide negotiating flexibility for both sellers and customers. And the potential for establishing a long-term sales relationship cannot be discounted.

In the end, the type of communication selected should reflect the seller's overall Sales Strategy. Static pricing may be "easier" from a Management Perspective, but in terms of long-range sales growth, other pricing strategies should always be an option for customers. As such, companies should be flexible in the ways they communicate pricing for their goods and services.

Jack

Tuesday, October 27, 2009

Tips For Writing Estimates And Proposals

When prospects express interest in a company's products or services, it's only natural for them to request additional information. And the common way to satisfy these requests is for the seller to provide a written estimate or proposal.

Writing estimates and proposals is a fundamental Business Practice, and its importance to the Sales Process cannot be overstated. After all, many of us can recount stories from our own experiences, as consumers, where a potential sale was lost because a salesperson failed to follow up on our sales inquiry.

Granted, putting together an estimate or proposal is hard work, with no guarantees the effort will pay off with a sale. Nevertheless, submitting estimates and proposals is the way most businesses get their goods and services into the competitive market.

That said, it is important for businesses of all types and sizes to view this practice as an opportunity to seize "new business", and not as some bothersome and potentially low-yield exercise.

Preparing Written Estimates

The format for estimates usually depends on what is customary for the seller. But regardless of how the estimate is structured, be sure to do the following:

* Summarize the project as agreed to by you and the prospect.
* Use realistic time frames for both scheduling and completion.
* List all materials and their associated costs.
* "Calculate" costs, don't guess. (Labor, Overhead, etc.)
* Spell out any additional costs or fees.
* Prepare the written estimate organized by the above categories.
* Include contact information and a follow-up date.

Preparing Formal Proposals

A glib observer of business practices might describe a proposal as an "estimate on steroids". There may be an element of truth in this observation, but in reality, a proposal is much more than a glorified estimate.

In content, proposals are "meatier" than estimates, but aside from substance, the major difference between an estimate and proposal is that the former is usually written from the company's perspective, while the latter is written from the perspective of the prospect.

It should be noted that preparing proposals is a common task for most types of business entities, from large corporations to small local businesses. They can be highly technical products of a collaborative team, or non-technical "features and benefits" summaries written by an individual sales person or entrepreneur.

In drafting a proposal, start by using the estimating steps as outlined above to help you calculate the raw cost data for the proposal.

From here, you will need to format the proposal. Businesses may use some "boilerplate" for this purpose, but it is important that you tailor the format to meet the specific needs and wants of the prospect.

As you draft a proposal, here are the basic elements you will want to include:

* A summary of the issue or problem your proposal will address.
* An outline of how you will address the issue or problem.
* The qualitative benefits of your approach.
* Your experience and expertise in handling similar issues and problems
* Testimonials and references as to your ability to do the job
* Contact Information and a follow-up date.

Regarding style and formatting, be sure to write clearly, succinctly, and with enough customer-specific language to demonstrate your understanding of the prospect's wants and needs.

Prospects generally view their needs as unique and special, so be sensitive to this and use the prospect's terminology whenever possible. Simply put, reinterpreting a prospect's wants and needs is not the best way to close a deal.

Another element you may be expected to include is an Executive Summary. For detailed and highly technical proposals, the need for a summary is pretty much a given. But if you do include an Executive Summary, condense it to a page or two at most.

When all is said and done, the prospect is looking for information to help them with a buying decision, so the more information you provide the better it is for both the seller and the prospect.

As a final word, be aware that it is common for a prospect to request several estimates or proposals based on different scenarios or circumstances. If this is the case, honor the request in a timely manner and be thankful for the opportunity. It may not come around again.

For additional information, there are many online and desktop resources available on this subject. A quick Internet Search will yield good results for you. To get you started, there are a few resources listed under the "links" Section on the Sidebar of this Site. Check them out.

Jack