Build Relationship With Customers

AGARFA ATVET COLLEGE
Unit of Competence: Build Relationships with

customers
Module Title: Building Relationships
with customers
LG Code: NRC NCU 414 03 11
LO 1: Establish rapport with customers
LO 2: Apply expert knowledge
LO 3: Provide post sales support
LO 4: Plans sales presentation
LO 5: Implement sales presentation
LO 6: Maintain and utilize a customer database
LO 7: Deal with difficult customers
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Introduction Learning Guide 1
This learning guide is developed to provide you the necessary information regarding the
following content coverage and topics –.
 Establishing rapport with customers
 Maintaining professional ethics with customers to promote store, image and credibility
 Clarifying customer needs and preferences
 Maximizing sales opportunities
 Evaluating purchase decision
 Demonstrating effective methods of closing sales
This guide will also assist you to attain the learning outcome stated in the cover page.
Specifically, upon completion of this Learning Guide, you will be able to –
 Establish rapport with customers
 Maintain professional ethics with customers to promote store, image and credibility
 Clarify customer needs and preferences
 Understand Maximizing sales opportunities
 Evaluate purchase decision
 Explain Demonstrating effective methods of closing sales
This learning guide relate to Session Plan-04 of M01-LO1
Learning Activities
1. Read the specific objectives of this Learning Guide.
2. Read the information written in the “Information Sheets 1”.
3. Choose a partner from your class and do role playing “establish rapport with customers”.
Ask your partner to give his observation regarding your performance
4. Accomplish the “Self-check-1”
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5. If you earned a satisfactory evaluation proceed to “Information Sheet 2”. However, if your
rating is unsatisfactory, see your teacher for further instructions or go back to Learning
Activity #2.
6. Submit your accomplished Self-check-1. This will form part of your training portfolio.
7. Read the information written in the “Information Sheet 2”.
8. Accomplish the “Self-check 2”.
10. Accomplish the “Self-check 3”
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Information Sheet-1 Establishing rapport with customers
1.1 Establishing Rapport with Customers

Building rapport with clients generally means directly meeting the client. Although many
marketing experts say that advertising can build rapport, Merriam-Webster defines rapport as a
"relation marked by harmony...or affinity." Certainly, advertising builds word-of-mouth, brand
recognition and brand identity and can be considered the driving force behind sales, but rapport
means building a relationship.
 Trust
We propose a broad concept of customer trust in the salesperson. Customer trust of the
salesperson has two components, affect and cognition.
 Affect is feeling secure or insecure about relying on the salesperson, and
 Cognition is the belief that the salesperson has both the necessary competence and
motivation to be relied upon.
A customer is any person who had, has or can have some interaction with a salesperson or
salespersons. The “customer” can include final consumers, any member of an organizational
buying center, or very broadly any shopping or buying role partner of a salesperson or
salespeople in general.
Trust refers to the degree to which one person can rely on another when the former is dependent
on the later. A fundamental competitive strategy of a growing number of organizations is to
build long-term mutually beneficial relationships with their customers. The ability of those
organizations’ salespeople to earn their customers’ trust is essential to the success of that
strategy.
 Trust Builder
Expert: The salesperson knows what he/she needs to know. The salesperson and his/her
company have the ability and resources to get the job done right.
Dependable: Buyers can rely on the salesperson. The salesperson keeps his/her promises
Candid: The salesperson is honest in his/her spoken word. The salesperson’s presentation is
fair and balanced.
Customer oriented: The salesperson truly cares about the partnership. The salesperson will go
to bat for the customer.
Compatible: The buyer likes doing business with the salesperson. The buyer likes doing
business with the salesperson’s company.
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 Trust develops when the salesperson is:
Candid
Dependable
Customer Oriented
Trust
Compatible
Expert
What means the customer and who are your customers?

The customer is defined as a transaction between Provider and an individual in a purchase
transaction involving sales of goods and services. The customer is the individual purchasing the
goods and service.
Successful salespeople are far better at building and maintaining high-quality relationships with
their prospects and customers than average salespeople. People are 100% emotional. They
decide emotionally and then justify logically. How the customer feels about you as a person will
have more of an influence on what the customer decides than any other factor.
The most important thing you can do in building a successful sales career is to create and keep
customers for the long term. The better you become at developing high- quality customer
relationships, the more you will sell, the easier you will sell it, the more money you will make
and the more valuable you will be, both to yourself and to your company.
Developing the positive kind of personality that leads to long-term sales success is similar to
maintaining physical fitness. It requires continually exercising your "personality" muscles so
that you become a nicer, more positive and more likable person in everything you do. There
is nothing that will help you more than to develop a positive reputation among your
customers and prospects.
 Credibility
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You should always be looking to build your credibility in the eyes of your customers.
Here are some further tips and suggestions:
i. Become the expert
Can you become the expert in your field?

For example, if you run a garden centre, can you write a gardening column in the local
newspaper? Can you give talks on gardening to garden clubs or service clubs?
ii. Offer free seminars or workshops
Another effective way to add credibility (and tangibility, because you can hand out
brochures and flyers) is to promote your services through free seminars. For instance, if
you have a camera shop, offer free workshops on how to get the most out of digital
photography.
If you can show them how, who are they going to buy their cameras off? And by the way,
you’re well on the path to becoming established as the expert because they’re going to tell
their friends about you!
Piggyback on experts
So you don’t feel you have the confidence to run the workshop yourself? That’s no excuse! Ask
your key suppliers to send a technician (and also to share the costs of the promotion). Or invite
expert guest speakers to share the presentation with you. This will enable you to increase your
credibility ‘by association’ in a similar way to featuring a well-known supplier brand or logo on
your promotional material.
Make use of technology
Technology offers great opportunities for adding credibility to your business

Testimonials/reviews
Gain a competitive edge by getting testimonials or reviews from people who are either well
known in the community or in your industry. For example, if you are offering some new
products or services, why not make these available to the people you would like favourable
reviews from? If they provide you with favourable feedback ask their permission to use the
comments on your promotional material.
This will increase the credibility of your business in the eyes of the public because
endorsements from third parties carry more conviction than your own comments about your
products or services. You might think your products and services are the best in Ethiopia,
but a quote from a well-known person is far more convincing.
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Reassuring your customers
So, you need to reassure them on all these points. To increase your credibility:
 Use quality signage.

 Introduce uniforms and name badges for staff.
 Project professionalism through a modern layout and good lighting.
Display the following:
 Framed certificates and qualifications held by you and your staff.

 Customer feedback and awards you’ve received (such as industry awards), or keep a
‘brag book’ of these you can show customers.
 Your mission statement or core service objectives for the business.
 Your guarantee.
1.2 Maintaining Professional ethics with the customer to promote store
image and credibility.
1.2.1 Maintain professional ethics with customers
 What are morals?
Morales are a set of beliefs that people learn and follow based on their developed beliefs that
are influenced throughout an individual’s life. Morale are what is thought to be wrong and
right around the world, within Ethiopia, within culture, community and families and our moral
values are held individual by all of us.
 What are ethics?
Ethics refers more to the set of rules, principles, or ways of acting in particular circumstances.
When we join a business we already have a set of beliefs, and likely some prejudice that have
developed though our lives, but when we step into a business as an employee our actions should
be professional and guided by professional ethics.
 How do we behave ethically in a retail environment?
Ethics is not just about acting in an appropriate ways to your immediate customers, although
this is vital important, it is also about acting ethically with respect to your employer and
towards other members within the organization.
Things we need to do;
 Work within industry standards
 Work within the law
 Work within organizational policy
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 Be an honest, reliable employee that always tries their best gain as much knowledge about
the product you sell as you can so you can act competently and best serve the business and
the customers’ needs.
 Show a genuine interest in the customer’s needs. Fully clarify the needs and then do your
best to satisfy/exceed those needs
 Try to maximize sales to assist the business\create and foster good customer relationships to
encourage customers to return.
 Treat information that customers give you with integrity and discretion.
 Maintain customer details in a safe and secure way to that customer’s privacy is maintained.
 Always exhibit a professional manner in appearance, attitude and behavior.
 Always try to empathize with, and reassure your customers.
If we can convey to our customers that we are there to help them satisfy their needs and that we
are knowledgeable, competent and trustworthy we have gone a long way to build and
maintaining a good rapport with the customer. The customer will return because they have had
their needs satisfied, the boss will be impressed, the stores reputation will be enhanced and we
will have done our job in an ethical way.
1.3 Clarifying Customer needs and preferences accurately to maximize
sales opportunities.
 Consumer Preferences and Related Concepts

 Consumer Satisfaction
Consumer satisfaction and acceptance are often considered in the literature to be closely
linked yet these are distinct concepts. Satisfaction is the fulfillment and gratification of
the need for a stated good or service, here, water.
 Consumer Acceptance
Acceptance describes consumer willingness to receive and/or to tolerate. For example,
a customer might accept the occurrence of a certain number of yearly supply
interruptions given a certain price. Consumer acceptance and satisfaction are related, as
the first is a precursor of the latter. However, despite the fact that satisfaction and
acceptance can be thought of as lying on a continuum, acceptance does not
automatically lead to satisfaction (see Figure 1.1). Weighing needs or preferences
against provided product or service attributes results in the balance of satisfaction
pointing in a negative or positive direction, depending on whether interests are
conflicting or corresponding. This determines the way in which people evaluate
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companies’ or utilities’ performance. Only when a consumer’s needs for a stated good
or service are met, i.e. when the service provided corresponds with their preferences,
will they feel satisfied. Customer satisfaction can be enhanced when their needs are met
(in terms of both quality and quantity) and accord with their preferences. At the other
end of this dimension, where the service provided conflicts with the prevailing needs or
preferences, customers may experience feelings of dissatisfaction.
Figure 1.1 Schematic review of the concept of acceptance placed in the context
of customer preferences and satisfaction
Acceptance is also used in the literature to mean an affirmative answer to a proposal. The
distinction is subtle but there are occasions where consumers might not agree to a proposal yet
accept the subsequent service in the sense of tolerating it.
 Consumer Concerns
These are expressed anxieties or unease over an object broadly defined (e.g. discolored tap
water or a proposal to change the water pricing structure).
 Consumer Preferences
This is used primarily to mean an option that has the greatest anticipated value among a
number of options. This is an economic definition and does not tap into ‘wishes’ or
‘dreams’ (for e.g. that safe drinking water was free, that there should be world peace) but
for all practical purposes is an appropriate definition. Preference and acceptance can in
certain circumstances mean the same thing but it is useful to keep the distinction in mind
with preference tending to indicate choices among neutral or more valued options with
acceptance indicating a willingness to tolerate the status quo or some less desirable
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option.
1.4 Maximizing Sales opportunities by use of add-on and complementary
sales techniques.
 Ways of maximizing sales
There are two ways you can help maximize sales with each customer that you serve. These are:
1. Add-on or complementary selling and,

2. Up-selling
1. Add-on or complementary selling

This technique of maximizing sales is the one most people think of when they hear the term add-
on selling. It is also the technique that, as customers, you experience most often.
Unfortunately in most instances the salesperson uses it something like this:
Salesperson: Is there anything else you’re after?
Customer: No thanks.
The problem here is that the salesperson has made no attempt to personalize the sales
process, nor have they used any of the information they have learnt about the customer and
their needs through their earlier questioning. In this instance the customer has responded, ‘No
thanks’, even though there were a number of items that the customer had a need for. Instead of
the approach used above, the salesperson should have used the following question:
Salesperson: you mentioned earlier that the table you inherited was in need of a little care.
This furniture polish should do the job.
Customer: Thanks, that’s a great idea; I thought I’d have to go to a hardware store.
This has meant that instead of the customer feeling the salesperson is being pushy (aggressive), the
customer thanks the salesperson for saving them time and effort.
2. Up-selling
Another technique that can be used to maximize sales is called up-selling. When you ‘up-
sell’ you are suggesting to a customer that a more expensive product may be better suited to
their needs. As with add-on selling, this can look pushy if used incorrectly, as illustrated in
the following example:
Salesperson: Those chairs are good but I think these ones will suit you better.
Customer: They’re twice the price! Thanks for your help but I’d like to shop around before I
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decide.
Making a suggestion at any stage of the sale without linking the suggestion with one of the
customer’s buying needs or preferences is likely to harm your success in selling to that
customer. Doing so towards the end of the sale by suggesting they spend more money will
certainly cause them to lose trust in you and may simply annoy the customer to the point that
they leave the store.
It is therefore extremely important that if you are to suggest that they buy a product that is more
expensive, you must also explain why this product will meet their needs and preferences better
than the less-expensive alternative. In the example above, the salesperson should have used the
following approach:
Salesperson: These chairs are excellent value for money; however, you mentioned that
you’d like the chairs to last as long as the table will. While the quality of these chairs is good,
the joints are what are known as dowel joints; these are OK, but not as long-lasting as ten on
joints, which will last much, much longer.
Customer: Oh, they are twice the price of the others! But you’re right, I want good
quality. Thanks for pointing this out, I wouldn’t have known otherwise. Looks like I’ll need
these ones. So, even though in both examples the salesperson showed the customer the same,
more expensive, chairs, in the second example the customer reacts positively, thanking the
salesperson for suggesting the more expensive item. It all depends on whether you link the
product with a need or preference that the customer has spoken of earlier.
1.5 Giving Customer space and time to evaluate purchase decision,
It is important to make sure that the customer doesn’t feel as though they are being rushed
towards making a decision or that they are being pushed. One of the most important concepts
to remember is that the best stores and the best salespeople succeed because they have
developed loyal customers who repeatedly return to shop with them. One of the surest ways of
destroying this relationship is by pushing customers into making hasty decisions.
On the other hand, the role of a salesperson is to maximize the store’s sales. So in giving
customers’ space and time to evaluate their purchasing decision you’re assisting the customer
to be sure that the suggested product does meet their needs. There is little to be gained by
selling customers products that don’t suit their needs. You will only have to deal with the
results of this at a later date. Problems caused by not giving enough time and space may include:
 customers not returning to shop in the store again

 customers returning products
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 customers complaining to their friends about the service
 Losing your customers’ trust.
All these problems are avoidable if you allow the customers time and space to make decisions
themselves.
It’s important to be clear on this point. The time needed by customers will vary significantly and
may be as little as a second or two or as long as wanting to think the whole purchase through
overnight.
Stores have legal obligations regarding purchase decisions and salespeople must know what
these are. Customers are entitled to a fair deal and reasonable satisfaction. You should let the
customer know about any policies that might impact on their decision, such as refunds or
warranty repairs, etc.
 Buying signals
How do you know when or if a customer is ready to buy, or if they will need more time to
make their decision? This is a matter of being aware and observant of the customer’s buying
signals and how strong these are. Most of the time customers will give clues that will tell the
observant salesperson whether they are ready. These clues may sometimes be quite obvious
and at other times a little more difficult to spot.
Some examples of buying signals that customers may exhibit include:
 ‘I’ve been looking for one of these for years!’

 ‘When could it be delivered?’
 ‘These chairs will look great with the table!’
 ‘Can I pay by cheque?’
 ‘You’ve found exactly what I was looking for.’
1.6Effective methods of closing sales
What does ‘closing a sale’ mean? Some salespeople think it means using the cash register to
record the sale. Closing the sale actually means getting a commitment from the customer that
they will buy the item(s) they have shown interest in. In effect it is getting the customer to say,
‘I’ll take it’. While this may appear to be quite a straightforward step, closing the sale can be
the most challenging part of the sales process for many salespeople. Up until this point the
salesperson has been helping the customer find product/s that meet their needs. They have built
rapport and trust, asked a range of questions, listened to responses and have been as helpful as
possible to the customer. The salesperson hasn’t really had to sell; they have only had to
provide a range of services for the customer. It is because they may now need to ‘ask’ for the
sale that many salespeople become uncomfortable.
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In the previous section we discussed buying signals. It is the presence and strength of these
buying signals that will allow the salesperson to decide upon how they will close each sale.
These buying signals will provide the salesperson with some effective choices in closing the
sale.
Here are three closing techniques and explanations of when to use them.
i. Assumptive close
The customer has shown very strong buying signals, so the salesperson assumes that
they are going to buy the product. Examples of this technique include:
 Buying signal: ‘I’ve been looking for one of these for years!’
 Close: ‘I’m glad we could help you find it, when would you like it delivered?’
 Buying signal: Customer reaches for their wallet.
 Close: ‘How would you like to pay for it?’
Some people think this technique is pushy or aggressive but it’s not if you are
simply responding to clear and strong buying signals. The only time this technique
will appear to be pushy is if you use it without the appropriate buying signals.
ii. Alternative close
This close is based on the fact that customers like to be given choices. They may not
have exhibited any buying signals at this stage. An example of this technique is:
 Close: ‘Which of these would you prefer, A or B?’

With the alternative close, always try to give the customer two choices; regardless of
which one the customer selects, you have made a sale. Even if no product choices
exist you can give two choices with regard to payment or delivery. For example,
‘Would you like this delivered to your office or to your home address?’ or, ‘Will that
be on your store card or cash?’
iii. Don’t miss-out close
This close works best when the item or offer will not be available for much longer. Examples of
this close are:
 Close: ‘We only have two of these left in stock, so I’d recommend you buy now.’
 Close: ‘If you need this delivered by next Saturday, you will have to confirm your
order with us today.’
In both these examples and with this technique generally, it is extremely important to be
truthful. The last thing you want is your customer to buy the product from you today,
believing that they are purchasing the last one that is available, only to be back in the store
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next week and see a whole wall of the items in the store.
Tips when closing sales
Do it! If you don’t ask you don’t get. If you’ve misread the buying signals and the customer
isn’t ready to buy, don’t worry. Apologize and get back into the sale to find out what else the
customer may be looking for. Give the customer time and space when making their decision.
Now is not the time to keep selling. Let the customer make up their mind.
Self-Check 1 Written Test
Name: _________________________ Date: ________________________

Time started: ___________________ time finished: __________________
Directions: answer all the questions listed below.
1. What is the word customer? (3point)
2. How you can build trust in your customers? (3 point)
3. What is the word credibility? (3 point)
4. Explain and define customer base? (3 point)
Note: Satisfactory rating – 12points Unsatisfactory- below 12points
You can ask your teacher for the copy of the correct answers.
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Information sheet
Apply Expert Knowledge
2
2.1. providing Customer with accurate information regarding product

and service appraisals,
 Product and service appraisal
Always provide the customer with accurate information, even if you have to take extra steps to
locate it. Customers are more willing to deal with delayed deliveries and other undesirables
when they know they have been given accurate information.
 Accurate information allows the customer to plan accordingly. Inaccurate information

makes customers angry and unwilling to trust what the company says.
 In addition, inaccurate information generates more calls into the already busy call center.
Providing accurate information the first time is beneficial for everyone involved
In business and legal transactions, a warranty is an assurance by one party to the other party that
specific facts or conditions are true or will happen; the other party is permitted to rely on that
assurance and seek some type of remedy if it is not true or followed.
A warranty may be express or implied depending on what you bought.
1. Implied warranty
An implied warranty is one that arises from the nature of the transaction, and the inherent
understanding by the buyer, rather than from the express representations of the seller.
The warranty of merchantability is implied, unless expressly disclaimed by name, or the sale
is identified with the phrase "as is" or "with all faults." To be "merchantable", the goods must
reasonably conform to an ordinary buyer's expectations, i.e., they are what they say they are.
For example, a fruit that looks and smells good but has hidden defects would violate the implied
warranty of merchantability if its quality does not meet the standards for such fruit "as passes
ordinarily in the trade". In Massachusetts consumer protection law, it is illegal to disclaim this
warranty on household goods sold to consumers etc.
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The warranty of fitness for a particular purpose is implied when a buyer relies upon the
seller to select the goods to fit a specific request. For example, this warranty is violated when a
buyer asks a mechanic to provide snow tires and receives tires that are unsafe to use in snow.
This implied warranty can also be expressly disclaimed by name, thereby shifting the risk of
unfitness back to the buyer.
2. Lifetime warranty
A lifetime warranty is usually a guarantee on the lifetime of the product on the market rather
than the lifetime of the consumer (the exact meaning should be defined in the actual warranty
documentation). If a product has been discontinued and is no longer available, the warranty may
last a limited period longer. For example:
 The Cisco Limited Lifetime Warranty currently lasts for five years after the product has
been discontinued.
 HP Networking products lifetime warranties for as long as you own the product. [3]
3. Second-hand Product Warranty
The importance of the used/second-hand product market as a fraction of the total market (new +
second-hand) has been growing significantly since the beginning of the twenty-first century.
Second-hand products include products that have previously been used by an end
user/consumer. Users change their products even if they are still in good condition. Some
products such as computers and mobile phones have a short lifetime and technologies of these
products are released to the market every day. As a result, the sale of new products is often tied
to a trade-in, resulting in a market for second-hand products. For instance, in France, used car
unit sales increased from 4.7 million to 5.4 million between 1990 and 2005, at the same time as
new car sales declined from 2.3 million to 2.07 million units.
2.2. Providing Detailed knowledge of supplier and/or manufacturer

information according to customer needs
Every organization has suppliers and customers. Each serves a vital role in the success of the
organization. Suppliers provide the goods and service required to create a product of value
while the customer purchase and/or use the product produced. Customers use the products
created by an organization. Customers can fall into either an internal or external category.
External customers are outside of the organization and purchase the products produced by that
organization.
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These customers are important for financial reasons. Without these customers the organization
would cease to exit.
The concept of internal customers is easily understood once you grasp that all work is a process.
All work that results in a specific product going to a customer is a part of a process.
If your objective is to satisfy or even delight your customers, meeting customer expectations
and the customer satisfied is essential. Customer expectations are defined in terms of agreed
upon specifications and the relationship built through doing business with the customer. And the
relationship built through doing business with the customer.
Customer satisfaction simply means that the customer is happy with the product provided and
the business relationship. The caution remains however, that what satisfies customers today may
not tomorrow.
Think about your work situation. Who are your suppliers? Who are your customers? Whom do
you provide with data, information, support, service, or product? These are your customers.
Who provides you with data, information, support services, or product? These are your
Supplier.
No company can succeed without the ability to generate, solicit and exchange knowledge; such
a skill is essential for solving problems and harnessing new opportunities. But knowledge
management is often difficult, not least because not all companies are ready to implement
effective strategies.
Upstream or Downstream?
The performance impact that explicit knowledge has for manufacturers differs depending on
whether the knowledge comes from upstream or downstream sources.
In general, good performance is tied to low inventory investment, which yields high levels of
organizational efficiency. In this study, low inventory investment is considered the desired
outcome of explicit knowledge inflows.
It’s important to note, however, that not all knowledge is equal. The richest information is
accurate, descriptive, timely and customized.
If manufacturers sought information on their customers internally, they would be vulnerable to
inertia, myopia and competency traps – resulting in an undesirable increase in inventory
investment.
On the other hand, utilizing downstream knowledge to gain an understanding of customer
purchasing behavior can significantly improve inventory investment.
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2.3. Evaluating and Demonstrating Product/stock range features and
benefits of products/services
The confidence and care you take in presenting and demonstrating products can set you
apart from other retailers but also from the ever increasing competition. Here are some tips
to help you stand out from the pack/folder.
Get your customers involved
If it's an item of clothing let the customer touch it and then encourage them to try it on. If its
furniture, perhaps you're showing them a sofa, invite them to sit on it. If you're in a pharmacy
and you're reading information from the label on the back of the box pick up the second item
and put it in their hand so that they have it as well. Wherever possible, encourage your
customers to hold the item, try it on or use it in some way.
By letting them experience the product, it becomes more real to them. Also it is no longer your
product, when it is in their hands or as they are trying it out it is potentially their product.
They've moved a little closer to ownership of the item.
Handle with care
Have you ever been in a jewelry store and noticed how the staff present a precious diamond
necklace or ring to the customer? Without even seeing the price you know it is expensive
because of the reverence they show as they handle it.
They should also present a diamante necklace or ring in exactly the same way, yet very few
sales people do this. It's about being customer focused rather than product focused. You are
handling this person's potential possession so it should be treated as if it is precious.
Treat your merchandise with respect. Remember, you may be showing the product to its future
owner.
I remember trying on a pair of squash shoes in a small sports store. It was busy and there
seemed to be lots of pairs of sport shoes spread across the floor. After trying on a pair that didn't
seem quite right, the owner brought me another pair. He made room for me by sweeping aside
the first pair and a couple of others with his foot as if they were rubbish/garbage to be put in the
bin/basket.
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He probably thought he was just moving HIS 'stock' out of the customer's way but to customers
he is not only devaluing the product, he is treating THEIR potential product disrespectfully.
By the way, it is a good tactic to immediately remove from sight any product that the customer
has rejected - though not ones they are just a bit doubtful about - so, the sports store owner was
doing something right. It's just how he did it that was wrong!
Demonstrating a product
We've already covered some key points appropriate to demonstrating a product in the previous
sections on handling the product with care and getting your customer involved.
The more interactive you can make the shopping experience, the more inclined your customers
will be to buy. And if you can provide them with evidence via this interaction they will have
proved to themselves that the product can do what you say.
With many products, an ounce of demonstration is worth a ton of words especially if your
customers can try out the product for themselves. Research has shown that when a customer is
given the opportunity to use a product or see it in operation the chances of closing the sale
increase by 17%.
There are a couple of additional rules to bear in mind.
1. Check any products first to make sure they work. This should be done in advance of your
customers coming into the store. There is nothing more embarrassing than attempting to
demonstrate a product that has a faulty part that doesn't work.
2. Make sure you can demonstrate with confidence by rehearsing in advance. Take turns at
demonstrating products with your colleagues.
3. Be completely familiar with any safety considerations associated with the product.
2.4. Maximizing Customer interest in product/service through price

negotiation
Learning how to negotiate to increase sales and profits is an essential skill set in a competitive
marketplace. Discussing price before you've established the value of your product greatly
reduces the options available to create a win/win agreement. Talking price up-front usually
results in a "single currency negotiation." These negotiations are generally not in your best
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interest because the only thing to negotiate is price. The options you face in this situation is
either meeting the price demand or losing the sale. Neither is an ideal outcome. Although
customers may apply "price pressure" during any sale there are strategies and tactics you can
take that can help you make sales without dropping your price.
Here are some key negotiation tactics that you should use before you cut your price. Using these
tactics can help you negotiate more effectively and sell at a higher price.
DO's
 When you meet sales resistance, try selling benefits before you negotiate.
 Plan your negotiation.
 Know what you want and what you need.
 Set your aim high.
 Know the other party.
 Establish a positive climate for negotiating.
 Identify all the issues before you begin to bargain.
 Maximize the value of each concession you give.
 Break complex negotiations down into pieces, and solve each piece one at a time.
 When you lack power, structure the negotiation around facts, figures and hard numbers.
DON'Ts
 Be the first to concede on a major issue.

 Make unilateral concessions.
 Get caught in a price only negotiation.
 Bow to pressure.
 Be afraid to say "no".
 Offer to split the difference.
 Rush the process - how you negotiate is as important as what you negotiate.
 Be put off by the word "no".
 Negotiate with anyone who has less authority to make concessions than you do.
 Negotiate at times when you desperately depend on a favorable outcome.
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There are no simple short cuts or magic bullets for dealing with price pressure. By learning how
to negotiate to increase sales and profits you can greatly enhance your chances of not only
getting the sale but at the price you want.
Remember, if your sales situations require an ongoing relationship with your customers use the
negotiating tactics described with care. As with any sales tactics you must establish and
maintain rapport during the sale. Doing so helps you be assertive when necessary without
threatening the relationship. Use these tactics as part of you sales strategies to increase sales,
profits and customer loyalty.
2.5. Calculating Prices and/or discounts accurately according to pricing

determinants and store policy.
2.5.1 Determinants of pricing and Types of Pricing
This article addresses a variety of factors that should be considered when establishing a price
for your product or service. These include:- The concept of a 'price' is a worldwide concept. In
fact, there are many ways to express the concept of 'price'. Some of the terms are; assessment,
bill, charge, cost, dues, duty, expense, fare, fee, honorarium, interest, levy, premium, rate,
retainer, salary, wage, tariff, tax, tithe, toll and tuition. I'm sure if you spend a little time you can
think of several more. No matter what you choose to call the 'price' you will charge for your
product or service there are a number of factors to consider when determining exactly how
much you should charge.
 Types of Pricing
Let's begin with the fact that there are many ways to present the 'price' for a product or service
to the customer. Some of the more well known methods are described below.
 Cost plus a percentage of the cost. (usually service oriented)

 Breakeven, that is, whatever it costs to produce the product or provide the service.
(usually non-profit organizations, but not necessarily)
 Target profit (eg: make a 20% profit before tax. This implies that you understand all of
your operating costs very well.)
 Perceived value (price to the consumer's expectation)
 Competitive related (price using competitive price as a base)
 Sealed bid (usually construction projects)
 Psychological pricing (eg: to create an impression of a lower price, $199.95 vs $200)
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 Geographical/sales site location (eg: varying prices for fuel in different geographical
locations)
 Your Objectives
The objectives that you have set for your enterprise and/or a particular product or service will
have a significant impact on your decisions related to the prices you set.
 Competition
If you are not the market leader in your industry, competitive prices will influence the pricing of
your product or service. Market leaders have often created a "pricing standard" against which
other product/service prices are compared.
 The Market/Prospect
Understanding the characteristics of the market is an essential factor in establishing a price for
your offering. You should first try to identify the general type of market you will be selling to.
 Type of market
 commodity (many buyers/competitors, non-unique products) - minimal pricing

flexibility
 uncontrolled (many buyers/competitors, unique products) - maximum pricing flexibility
 controlled (many buyers, few competitors, unique products) - some pricing flexibility
 vertical-low (limited # of buyers, many competitors)
 vertical-high (limited # of buyers, few competitors)
 Prospect Characteristics
Then you should learn as many details as possible about the 'typical' prospect in the market you
have targeted. Examples of the kind of detail you should look for are:
 Prospect's perception of your product (positive perception = higher price)

 Prospect's awareness of your product (lack of awareness raises promotion costs)
 Whether product is for a captive audience (eg: razor blades, minimizes marketing costs)
 The criticality of the offering to the consumer (more critical = higher price)
 The ability of the consumer to pay (greater ability = higher price)
 Demand due to seasonal considerations (snow shovels priced lower in the summer)
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 Demand due to geographic considerations (snow shovels in Tahiti are unlikely to sell no
matter how low the price)
 Market trends, fads or changing consumer interests
 The Product or Service

There are, of course, many characteristics of your product or service that will influence the
price.
 Does your offering provide tangible versus intangible benefits/differences? Offerings

with immediate and tangible benefits will usually support higher prices.
 The uniqueness of your offering versus the competition. Uniqueness usually supports a
higher price if the offering has credibility.
 Whether your offering is one of several in a product/service line. Pricing must be
consistent with the rest of the line.
 Whether your offering is a complement to another product/service. Sales to existing
customers usually reduces marketing costs thus giving greater pricing flexibility.
 Your Enterprise
A variety of factors within your enterprise will influence the pricing decision. Some examples
are:
 Your cost to produce the offering is clearly the first factor in setting the price.
 The potential for learning curve benefits. That is, will sales volume and time result in
lower production costs thus creating the potential for lower prices?
 Your ability to meet demand. If you have a limited production capacity, you should
price high enough to insure that you don't create more demand than you can satisfy.
 Your cost to deliver, including shipping, warehousing and installing.
 Your cost to promote, including press releases, press tours, ads, literature, demos, etc.
 Your financial resources, giving you the ability to sustain a start-up period of losses.
 The quality and speed of your product/service delivery. If you can deliver quickly and
"how quick can I get it?" is the most critical factor to the prospect then high pricing is
likely.
 The Environment
In addition to characteristics of your competitors, your prospects and your enterprise there are
more general, environmental factors that can influence your pricing.
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 At what point in market life cycle of your offering are you selling? If it is early in the
life cycle you can usually charge a higher price.
 What is the availability, quality and cost of channels of distribution?
 What is the status of the economy (inflation, deflation, varying interest rates)?
 What is the potential for government intervention? Is your enterprise verging on a
monopoly? is your offering important to national stability?
 Are market characteristics such that a lower price will generate a higher demand?
(Elasticity of demand)
 Other
There are many other factors that can influence pricing that are difficult to place in any of the
above categories. Some of these are:
 The method of payment you want to extend to the customer. (cash, invoice for 30 day
payment, time payments, no payments until ...)
 The cost for the prospect to switch to your offering from their current solution. Does a
high switching cost imply that you need to price low to offset the switching costs.
2.5.2 Store policy
The best time to establish policies and procedures for your retail business is during the planning
stages. By anticipating problems before you open your doors, you can strategize how you'll
handle special situations, as well as the normal day to day operations. This helps avoid making
mistakes once you're faced with customers.
Document each policy in a procedures manual. It doesn't have to be fancy, just a three-ring
binder that you can continue to update as time goes by. Make several copies of the manual, give
one to each employee and store one near the cash register for easy reference. To begin creating
policies, ask yourself the following questions. Decide how you would like for your retail store
and your employees to handle these items of business.
2.5.3 Product Pricing

 What is your store's markup?
Definition: A percentage added to the cost to get the retail selling price.
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Examples: A widget bought for $5 and sells for $10 has a mark-up of 100%. (Add $5 to the $5
cost to get the price.) A widget bought for $2, which sells for $3, has a mark-up of 50%, (Add
$1 to the $2 cost to get the price.)
 Have you created a pricing strategy?
There are many outside influences that affect profitability and a retailer's bottom line. Setting
the right price is a crucial step toward achieving that profit. Retailers are in business to make a
profit, but figuring out what and how to price products may not come easily.
Before we can determine which retail pricing strategy to use in setting the right price, we must
know the costs associated with the products. Two key elements in factoring product cost is the
cost of goods and the amount of operating expense.
The cost of goods includes the amount paid for the product, plus any shipping or handling
expenses. The cost of operating the business, or operating expense, includes overhead, payroll,
marketing and office supplies.
Regardless of the pricing strategy used, the retail price of the products should more than cover
the cost of obtaining the goods plus the expenses related to operating the business. A retailer
simply cannot succeed in business if they continue to sell their products below cost.
2.5.4 Retail Pricing Strategies
Now that we understand what our products actually cost, we should look at how our
competition is pricing their products. Retailers will also need to examine their channels of
distribution and research what the market is willing to pay.
Many pricing strategies exist and each is used based on particular a set of circumstances. Here
are a few of the more popular pricing strategies to consider:
i. Mark-up Pricing
Markup on cost can be calculated by adding a pre-set (often industry standard) profit margin,
or percentage, to the cost of the merchandise.
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Markup on retail is determined by dividing the dollar markup by retail.
Be sure to keep the initial mark-up high enough to cover price reductions, discounts, shrinkage
and other anticipated expenses, and still achieve a satisfactory profit. Retailers with a varied
product selection can use different mark-ups on each product line.
ii. Vendor Pricing
Manufacturer suggested retail price (MSRP) is a common strategy used by the smaller retail
shops to avoid price wars and still maintain a decent profit. Some suppliers have minimum
advertised prices but also suggest the retail pricing. By pricing products with the suggested
retail prices supplied by the vendor, the retailer is out of the decision-making process. Another
issue with using pre-set prices is that it doesn't allow a retailer to have an advantage over the
competition.
iii. Competitive Pricing
Consumers have many choices and are generally willing to shop around to receive the best
price. Retailers considering a competitive pricing strategy will need to provide outstanding
customer service to stand above the competition.
Pricing below competition simply means pricing products lower than the competitor's price.
This strategy works well if the retailer negotiates the best prices, reduces costs and develops a
marketing strategy to focus on price specials.
Prestige pricing, or pricing above competition, may be considered when location, exclusivity
or unique customer service can justify higher prices. Retailers that stock high-quality
merchandise that isn't available at any other location may be quite successful in pricing their
products above competitors.
iv. Psychological Pricing
Psychological pricing is used when prices are set to a certain level where the consumer
perceives the price to be fair. The most common method is odd-pricing using figures that end in
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5, 7 or 9. It is believed that consumers tend to round down a price of $9.95 to $9, rather than
$10.
v. Other Pricing Strategies
Keystone pricing is not used as often as it once was. Doubling the cost paid for merchandise
was once the rule of pricing products, but very few products these days allow a retailer to
keystone the product price.
Multiple pricing is a method which involves selling more than one product for one price, such
as three items for $1.00. Not only is this strategy great for markdowns or sales events, but
retailers have noticed consumers tend to purchase in larger amounts where the multiple pricing
strategy is used.
Discount pricing and price reductions are a natural part of retailing. Discounting can include
coupons, rebates, seasonal prices and other promotional markdowns.
Merchandise priced below cost is referred to as loss leaders. Although retailers make no profit
on these discounted items, the hope is consumers will purchase other products at higher margins
during their visit to the store.
It is difficult to say which component of pricing is more important than another. Just keep in
mind, the right product price is the price the consumer is willing to pay, while providing a profit
to the retailer.
 Do you offer discounts on bulk purchases?

 Do you offer employee discounts?
Think of your store policies and procedures as a guide, rather than being set in stone. In order to
reasonably satisfy the customer, some situations may call for bending the rules. Make sure
forms of payment, returns, layaways and other policies are clearly posted for customers to see.
This will allow you to easily and confidently enforce your rules. As your business grows and
you gain more experience operating your retail business, periodically review and revise policies
as necessary.
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Name: _________________________ Date: ________________________
1. What is ethics?
2. What are the tips we need to do to act ethically in the business?
3. How do you behave ethically in a retail business?
Note: Satisfactory rating – 3points Unsatisfactory- below 3 points
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Information Sheet-3 Providing post sales support
3.1. Providing Evidence of ongoing support accurately while concluding
sales
The customer support system includes everything a customer needs to communicate with a
company about its products and services. This type of system addresses customer problems and
resolves issues. Giving customer support is essential to almost every business because much of
the company's success relies in how many customers they can successfully gain and serve.
Technical Support
Customers use technical support when resolving problems with purchased items, especially
electronics such as cell phones, computers and stereo equipment. Technical support
representatives must have the knowledge and skills about specific products when it comes time
to troubleshoot and fix problems. Many businesses often give this type of training to tech
support representatives so that decisions can be made immediately when talking with
customers. Technical support departments must be given authority to resolve situations through
such means as refunding money or sending out new products when necessary.
Listening
One requirement of a business' customer support system is to listen to customers. Many

companies leave suggestion or complaint boxes so that ideas or complaints can be submitted by
customers. This type of "listening" allows businesses to not only see how their business is
viewed from the customer perspective, but also the chance to improve services and product
offerings.
Account Maintenance
Companies offer account maintenance and support to customers who have subscribed to
monthly services or have made ongoing purchases. For example, cell phone companies such as
Verizon, Sprint and AT&T use account maintenance representatives to help customers change
monthly cell phone plans, upgrade services, and answer questions regarding the customer's
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account. Account maintenance--whether being conducted by representatives in a call center or
through an online support ticket system--gives customers assurance of ongoing support.
Purchases
Customers need in-store representatives to assist with making purchase and orders of products
and services. Examples of in-store representatives include department store cashiers and
restaurant waiters and waitresses. These representatives help customers follow through with the
purchasing process.
Refunds
Business use refunds and product/service exchange policies when crediting customers for
broken or unsatisfactory items. These refund services often take the form of customer service
desks where representatives evaluate claims from customers. Store or merchandise credit or
refunds are typically given to customers who have valid arguments.
3.2. Explaining back up service accurately and reassuring customer

according to legal requirements and store policy.
Backup
If you have something such as a second piece of equipment or set of plans as backup, you have
arranged for them to be available for use in case the first one does not work.
3.3. Providing Customer with store/salesperson’s contact details
Significance
A retail salesperson's job description primarily entails interacting with customers, answering
their questions about various products and closing the sale. Often, the retail salesperson is the
only contact that a customer has with a particularly retail establishment. Therefore, these
employees must be well-trained in delivering excellent customer service and making the
customer want to return to the store in the future.
Identification
The retail salesperson's job description includes ringing up transactions on the cash register,
processing credit cards and providing customers with the proper change. After the sales is
completed, the retail salesperson typically bags up the purchased items and gives the customer a
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receipt. At least part of the retail salesperson's job description will entail arranging displays on
shelves, setting up point of purchase (POP) materials, such as shelf tags or window banners, and
returning loose merchandise to its proper location.
Function
In more technically oriented settings, a retail salesperson's job description may be more
consultant-oriented, where the salesperson makes recommendations on which items would be
more practical for the customer's use. For example, jewelry retail sales people often recommend
engagement rings or diamonds based on the customer's price parameters. Additionally, an auto
parts salesperson may recommend that the customer use a certain type of oil in the summer; or
wax their care with a specific product brand. A retail salesperson's job description can also
include exchanging merchandise, doing price checks for customers or cleaning counters,
shelves and display units.
Considerations
A retail salesperson's job description may also involve taking inventory and filling out inventory
reports; or reporting any cash shortages or surpluses at the end of their shift. Often, the retail
salesperson's job description requires them to be cognizant of shoplifters and immediately
report any theft to the store managers. A retail salesperson is also usually responsible for
ensuring their safety and the safety of others by adhering to certain safety policies of the store.
Education and Skills
Most retail companies prefer that their retail sales people have at least a high school education.
A retail salesperson should enjoy working with others, have basic MATHS and interaction skills
and be able to communicate effectively with customers, other employees and the store's
management team.
Salary and Job Outlook
The average pay for a retail salesperson in Ethiopia
3.4. Entering Customer and/or transaction details accurately to customer

database.
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You have kept your customer information on paper, in spreadsheets, in your accounting
program and now you want to set up a central database for all your customer information. As
you evaluate your options, you face questions like:
Your customer database and potential customer database is the source of your trade. You need it
to generate repeat business in the future, or as a fall back when times get tough and as an
asset of your company when you want to sell up.
What Information to Track?
This varies dramatically, but there are several frequently used types of business information:
 Contact details
 Customer preferences
 Communications history
 Sales history
 Actions
 Payments
Customizing databases to fit your information
Now that you decided what information goes into your database and where it comes from,
consider how this data can fit into the database.
The simplest method of customizing a database is creating extra fields in the customer record.
Many database programs make it easy and so you can accommodate business-specific
information by adding more and more fields.
When you have hundreds of fields, the system becomes difficult to manage. This is probably
because you have put together information about different objects. Re-structuring your data
makes it easier to access and manipulate. There are two methods of re-structuring such data:
Splitting customer records into related record types

Storing some information in external files
Splitting customer records into related record types:
Suppose we need to record basic family information:

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 Family name
 Husband's name and birthday
 Wife's name and birthday
 Child 1 name and birthday
If you were to add all these details to your customer record, they will occupy eleven fields.
Finding a John Smith will be difficult - you need to search four times - for John as the husband,
Child 1, Child 2 and Child 3. And the system won't accommodate families with four or more
children.
To handle this information, the databases can store it in different record types and relate these
records to one another.
In our example, each personal record will then have three fields: name, birthday and the link to
the family record. John Smith can be easily found with one search, no matter who he is in the
family.
To see if a piece of customer information should be tracked in a separate record type check
whether a customer can have more than one of it. Can a customer have multiple policies? family
members? air conditioners? Can a customer be included into multiple lists? If the answer is yes,
then those objects should be tracked separately and linked to the customer records. If no, they
can be incorporated into the customer record.
Storing some information in external files.
There is a natural desire to track all customer information on the database, but is it really
required? There are some data types that databases don't handle well, for example, spreadsheets.
The databases are designed to work with large number of similar records, while in a spreadsheet
each row could be different from the previous one. Spreadsheets' formulas can be easily
modified, while in a databases they are programmed.
So if you are used to tracking some customers information in spreadsheets or some other
external files (photos, text documents etc), perhaps it is worthwhile to continue doing so,
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linking those files to the customer records. You will keep your database simple and agile and
retain the familiar ways of working with these files, but can still easily access all customer

Name: _________________________ Date: ________________________
Directions: answer all the questions listed below.
1. What does closing a sale mean? (2 points)
2. What are the three closing techniques? (3 points)
3. Define the three closing techniques? (5 points)
4. Watch experienced salespeople close a sale in your workplace. Write down any tips
you gain from watching them.(10 points)
5. Ask an experienced salesperson what closing techniques they have found to be successful.
Note: Satisfactory rating – 20 points Unsatisfactory- below 20 points
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Information Sheet-4 Plan sales presentation
4.1. Presentation planned to complement product characteristics.
 Basics of sales presentation
Unlike a TV/Radio/Paper advertisement, a sales presentation has a longer format - and is
delivered in person by a salesman. Thus adding a human element to this "advertisement".
A good sales presentation is therefore the one which entices/seduce the potential customer to
make the buying decision. A successful sales presentation has two parts. Part one is Presentation
Planning and Part two is the actual presentation and demonstration.
 Presentation Planning /planning sales presentation
First step in developing a sales presentation is to write out your presentation plan. Preparing a
written plan requires one to think of the major selling points of your product or service. One
must also think of the possible questions customer may ask. Consider the best case, worst case
and most probable case, try to anticipate as much as possible. This requires lots of thinking - on
what are the customer's needs, what will be the major selling point to those needs, how would
the customer possibly react, what would be the questions & objections, and how you can
effectively show that your product or service can meet your customer's needs. The best
preparation in developing a sales presentation plan is to know a lot about the potential customer
themselves: Who they are, what market segments do they serve, who their competition is, what
are the major challenges facing them etc. Another important thing that must be taken into
consideration while developing the sales presentation is the objective of the sales presentation.
If the sales presentation is being delivered on the very first meeting, then the sales presentation
must do the following:
1. Establish rapport
2. Discover needs
3. Match your product features & benefits with customer needs
4. Get commitment for the next action step.
In most business-to-business sales, the first meeting will not result in closing the deal or
winning the order. So the objective for the very first presentation must be set accordingly.
In a multi-meeting presentations, the objective will be to:
1. Reinforce the rapport established in the earlier meeting/presentation
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2. Build a relationship with the customer (based on inputs from the earlier meetings
3. Jointly discover customer needs
4. Set the stage for the next meeting
5. Address any objections, concerns the customer may have
6. Present the value of your product/service to the customer
7. Close i.e., Get the order
Objective of the sales presentation drives the content of that presentation. In a complex sale,
objective of various presentations are different, one has to prepare multiple presentations.
 Closing thoughts
Planning a sales presentation is not something that can be done on a fly. Often in a complex
sale, you would require inputs from various departments within your own company - to capture
the value your product/service can provide, to answer the objections/concerns of the customer,
and to establish credibility to your sales presentation.
The primary purpose of the planning your sales presentation is to have a thorough preparation
for the presentation. The thoroughness of your preparation will establish a strong rapport
between buyer and seller (which is an essential ingredient for consultative selling).
4.2. Selecting Client group according to product characteristics and store

merchandising policy
The first step towards good practice in client focus is understanding who your clients are by
developing a profile of their characteristics. Profiling your clients will help you compile the
basic information needed to view your products and services from your current clients’
perspective, not just your own.
Creating a client profile
Developing a client profile involves pulling together all the information you can find about your
client groups and finding answers to many of these questions:
1. Who are they? What defines them as group that uses your products/services—is it their
age, background, interest, occupation, ambition, a set of attitudes or values or some other
factor? Are they 18-21 year old students, employers in small business, engineers, or
Indigenous Australians? If it’s a mixture of all of the above, which are the biggest
groups?
2. What’s the size of the group or the size of the potential market? Why are they
consuming? What is their need/objective?
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3. What are their main demographic characteristics? e.g. age, gender, income, socio-
economic background, geographic location, education level
4. What issues concern them? What else is on their agenda?
5. What else is competing with our product, service or issue for their time, attention or
money? What are they doing with their disposable income, free time, product choices?
6. What are their preferred channels of communication? What do they watch, listen to, and
read?
7. Who do they trust? Who gives them advice? Who are their heroes or role models?
4.3. Accessing and Distributing Promotional materials to client group
You desire the best possible product recognition for your brand to attract customers and get
them to notice your sales promotion materials and order your product. These materials are your
image, and sometimes your only promotional piece to reach the customer, and therefore
your sales promotion materials must be exceptional, eye catching and be durable and produced
to last.
All of our sales promotion materials are custom designed to meet the specific requirements of
our customers. The photos exhibited are of sales promotional materials that many organizations
apply for their business.
4.4. Selecting and preparing Range of products/services for presentation

to reflect store image, demographics and merchandising plan
Metal Signs
Inflatables
Pennants | Pennant Strings
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Neon Signs
Mirrors
Base Wraps
Tap Handles
Beverage Ice Coolers
Barware
Brochure Holders
Wood Signs
Acrylic Table Tents
Coasters
Back Bar Displays
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Satin Banners
Illuminated Signs
Light Boxes
Unique
Table Tents
Metal Tackers
Beer Buckets
Patio Umbrellas
Poly Banners
Vac Formed
Bar Mats
Beer Trays
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Mobiles
Static Clings
Danglers
Easel Cards
Case Cards
Bottle Hangers
Clocks
Open Closed Signs
Large Promotional Programs
Outdoor Tents, Huts & More
Casino Items
Restaurant | Retail
Page | 40
Pool Table Lamps
Napkin Holders
Chalk Boards
Carpets
Dealer Loaders
Name: _________________________ Date: _______________
Directions: Answer all the questions listed below. Illustrations may be necessary to aid some
explanations/answers.
1. What is the first steps in developing sales presentation? (3 points)
2. What are the parts of a successful sales presentation? (5 points)
3. -What is the objective of a multi meeting presentation? (2 points)
Note: Satisfactory rating - 25 points and above Unsatisfactory - below 25 points
Page | 41
Information Sheet-5 Implement sales presentation
5.1. Briefing Numbers support staff, where required, sufficient and

adequately for presentation.
 Staff comes first
There’s an old business cliché that the customer comes first. But for the purpose of this
chapter, the cliché is wrong. It is your staff that comes first, because it is your staffs that
will help you make a success of your business. If you want your staff to give customers
quite exceptional service, then you must first treat and train your staff in such a way that
they will willingly deliver this outstanding service—and do it consistently.
Everyone markets the business
Staffs that have no contact with customers are just as important as staff that does. You depend
on such staff to make a quality product or design an exceptional service or provide efficient
administrative support. If they don’t, you stand to lose customers. You have to make it clear to
all your staff that they are ambassadors for your business. This can be quite a revelation for
some staff, who think they have no role in marketing the business. In fact, everyone markets the
business.
Recruiting the right staff

A common fear in businesses is hiring the wrong person. Many later staff problems can
be avoided if you take extra care to recruit the right people in the first place. A strategic
vision backed by strong core values will help you get the right staff: people are
attracted to working in a business with a clear sense of direction and values.
In many such businesses (for example technology businesses), staff will work long
hours, driven by the passion of reaching goals. Your core values make up the
‘personality’ of your business, and in communicating them you’re also telling others
what’s unique and authentic about your business.
From a marketing point of view you’re looking for people who:
 Like making other people (your customers) happy. People do business with people
they like.
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 Are friendly and outgoing.
 Enjoy cooperating with others in a team.
 Can take responsibility for their own decisions.
 Show some leadership qualities.
 Are prepared to share their knowledge. If they are very good at sales or people skills,
for example, are they happy to help train others?
Check all references carefully and look for some evidence that they have added value to
previous businesses they may have worked for. A good question to ask the business is: ‘Would
you re- employ this person?’
The best reference is for the business to tell you that the applicant did more than their jobs:
they have some personality and showed creativity and initiative.
Most important, do you like them? Could they sell you something?
Gaining staff buy-in

Every business needs a Procedures Manual or House Rules that set out the standards and
procedures that staff must follow. For example, in a retail business a few examples of these
procedures might include:
Always wearing name badges.
Conforming to a dress code.
Greeting customers (preferably by name).
Answering the telephone in a consistent and welcoming way.
Learning the names of regular customers.
Taking responsibility for following through on customer service.
Always asking new customers how they found the business.
Explain why procedures are important
Certain procedures should be non-negotiable: they are a condition of employment. But at the
same time you will have more success in getting staff to adhere to these procedures if you
make their purpose clear. For instance:
Wearing name badges and conforming to a dress code help to build a friendly,
professional image. If customers have a service problem, they can attach a name to
the person who served them. This is enhanced too by greeting all customers, a
process that gives them recognition and acknowledges their importance (make sure
you ban the off-putting ‘Can I help you?’).
Answering the telephone in a standard way again promotes friendly professionalism
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since following a script ensures that nothing important is left out (such as communicating
your competitive advantage to customers).
5.2. Applying Communication skills to effectively create interest, focus

attention, encourage customer interaction with individuals and/or
groups.
Everyone uses interpersonal communication skills. We use them at home with our families, in
the workplace with our bosses and coworkers, on our computers when we answer email, and on
the telephone when we order pizza. This manual is intended to help you improve your
interpersonal communication skills and develop new skills to become a more effective
communicator.
Interpersonal communication applies to all of our relationships, personal and business. Others
respect or reject us based on our interpersonal communication skills. People send us messages
in every interpersonal communication encounter. Those messages can be explicit (verbal
comments) or implicit (nonverbal facial expressions, other body language, and physical space).
DEFINITION OF COMMUNICATION
Communication can be defined in many ways. In simple terms communication is:
Information transmitted
A verbal or nonverbal message
A process by which information is exchanged between individuals through a common
system of symbols, signs, or behavior
KEY ELEMENTS IN COMMUNICATION
There are three key elements in the communication process, which we will refer to throughout
our discussion of interpersonal communication. They are:
 You
 Your audience/customer
 Your message
YOU bring professional experience and education and training to the communication process.
You have earned credibility with your employees, your board members, the public, the media,
and your fellow workers.
In order to be an effective communicator, you need to know who your AUDIENCE is.
The principles of effective interpersonal communication are the same whether your
"audience" is one person, ten people, or one thousand.
The MESSAGE element is equally important. What do you want to say? What is the best
way to communicate the message? There is a basic rule used by journalists for writing a
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newspaper story that can help you focus your message. A well-written story should contain
the who, what, when, where, why, and how of the story in the first paragraph or two. If it
does not, it will not hold our attention.
The same principle applies to your message in the process of interpersonal communication. If
you do not let your audience know quickly the who, what, when, where, why, and how of your
message, you risk their losing interest, being inattentive, and tuning out. Therefore, whether
spoken or unspoken, messages should contain most of these elements:
 Who  When  Why
 What  Where  How
COMMUNICATION TOOLS
There are four basic communication tools:
 Listening  Reading
 Speaking  Writing
All four of these basic tools can be learned and improved. First, you must want to
improve your communication skills. Next, you must understand them, and recognize their
importance in the communication process. Then, you need to learn some new skills.
Finally, you must practice good skills to become a better, more effective communicator.
At an early age we begin to learn to speak, early enough that it is difficult to remember the
process. However, most of us can recall learning to read and write. These are skills we learn
from parents and teachers. We spend most of our communication time listening. Yet, listening is
a skill we are not taught, unlike writing, reading, and speaking. Probably, listening is the most
important communication skill we can develop. We will explore listening skills in Chapter 2.
HOW WE GET AND USE INFORMATION
How much information we retain in the communication process depends on
many factors. It is important for each of us to recognize how we learn best.
Do we remember most of what we read? Most of what we hear? Do we
learn more if someone shows us?
Typically, we retain information at these rates:
10 percent of what we read
20 percent of what we hear
30 percent of what we see
50 percent of what we see and hear
70 percent of what we see and discuss
90 percent of what we do
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Another way to think about how we retain information is this adage:
Tell me and I will probably forget,
Show me and I might remember,
Involve me and I will learn.
5.3. Products/services demonstrated to create a buying environment.
 Sales pitch
A sales pitch isn’t only a presentation of facts and figures. A sales pitch presents information
about a product or service in such a way that the person to whom the presentation is made
wishes to make a purchase. A successful sales pitch starts with a beneficial product or service.
A successful pitch also requires a salesperson who understands the product and has the
confidence and insight to help prospective buyers understand how they will benefit from the use
of the product or service.
Instructions
1. Study the product. The first order of business in conducting a successful sales ground is
knowing the product or service you plan to sell. This means studying the product,
reading documentation and using the product or service yourself so you know the
strengths and weaknesses.
2. Project confidence. If you don’t believe in what you're selling, no one else will either.
Work at projecting confidence in your presentation. Write up what you plan to say and
practice in front of a mirror until you know the material and are confident in your
delivery.
3. Learn key elements of the product or service. Many products and services have reams of
documentation. Using a whole lot of facts, figures, surveys and data doesn’t promote a
sale and instead can simply confuse and overwhelm. Become familiar with the aspects
of the product or service that make it different, special and of value to the prospective
buyer.
4. Greet people by name to establish a positive connection. People respond to those who
take the time to know their names. Learning beforehand about the needs of a prospective
buyer helps him realize you’ve done your homework and that you offer something of
legitimate value to him.
5. Share stories of how what you're selling has helped others who purchased it. While your
approach or focus may be different for various clientele, always add stories of how the
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product or service has shown to be of practical value to the user. Add your own story of
how the product or service helped you.
6. Reveal basic facts that provide a foundational reason for purchasing the product or
service. While you don’t wish to overwhelm a prospective buyer with too much
documentation, briefly point out that the product is backed by surveys, studies and data.
Share that documentation does show that the product or service has a proven value.
Show one chart or graph of how the product or service has benefited others.
7. Gear your presentation toward the person or company to which you’re trying to sell.
Some prefer a more relational approach, focusing on stories of how the product or
service was of benefit to others. Other clients are more the “just the facts” type. With
these people, emphasize the documentation and demonstrated value of the product or
service. Use stories and facts in each presentation, but emphasize the one that best
connects with the particular prospect.
8. Emphasize any guarantees. Reassure prospective buyers they won’t be left hanging
should the product or service not live up to claims made. Go over the guarantee or
warranty to let them know the product or service is backed up by the company.
9. Repeat principle selling points and ask for a decision as you come to the end of the
presentation. Ask if the prospective customer has questions, and listen and answer those
questions. Show options for payment.
10. Leave an opening to approach the subject again at a later date should the potential client
desire more time to consider your product. If he cannot make a decision, ask if he would
like more information. Ask if you can leave literature about what you're selling and if
you can call back later. Leave on a positive note.
5.4. Measuring Results of sales presentation according to predetermined

criteria
Before you can evaluate the performance of your sales team, you must first analyze its
components. Measuring results of sales presentation is expressed in the way we measure our
sales teams. Here is a simple formula you can use to analyze the performance of your team as a
whole or of individual sales representatives:
Performance = Competence + Motivation + Opportunity
The components are independent of each other. In other words, a sales representative can be
highly motivated but incompetent, poorly motivated but highly competent, poorly motivated
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and incompetent, or highly motivated and highly competent. Regardless of your sales team's
level of motivation and competence, if the opportunity component is weak, sales performance
suffers.
After you evaluate the components of performance, evaluate another key measure of
performance: sales results. After you complete all of your evaluations, you can take action for
each sales representative.
5.5. Evaluate competence
Competence includes knowledge of your products, your sales processes and policies, your
company, and your industry. It also extends to knowledge of your customers, their problems
and opportunities, and their industry. Additionally, it includes a basic understanding of how
business operates.
Depending on your industry, sales representatives might need to have a certain amount of
knowledge in technology, finance, engineering, manufacturing, or human resources. They can
call in a technical expert at the appropriate time.
 Sales skills
The second element of competence is sales skills. These skills include:

 Knowing how to prospect for business
 Knowing how to prepare for a sales call
 Knowing how to build rapport and trust with customers
 Knowing how to qualify prospects and assess their needs
 Knowing how to write a proposal and deliver a sales presentation
 Knowing how to overcome objections and close the sale
When you evaluate representatives who manage key accounts, look at their skills in building
relationships at multiple levels of the customer organization, managing change, communicating
back into your company, influencing, negotiating, and thinking strategically.
 Assessment tools
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You have several tools to assist you in this evaluation. There are sales competency assessments
that you can perform on your representatives. The best assessments list generic sales skills and
knowledge and use behaviorally anchored rating scales (BARS). BARS help you rate
objectively, fairly, consistently, and precisely.
Some companies create competencies from benchmarking studies, focus groups, and customer
surveys. However, you may find that you can customize off-the-shelf assessments to meet your
particular situation. Here is a sample of an assessment of product knowledge used by an
electronic publisher of political and economic reports:
Level 1 (Novice) Knows the names of all the products and can review features with customers
from the product catalog or sales collateral.
Level 2 (Competent) Knows the names of all the products and can review features with
customers from the product catalog or sales collateral. Can list current world economic and
political events. Can demonstrate online products at a customer's desk. Answers customers'
general questions about the product.
Level 3 (Proficient) Knows the names of all the products and can review features with
customers without the assistance of the product catalog or sales collateral, if necessary. Is aware
of current world economic and political events and can link them to a customer's business. Can
demonstrate online products at a customer's desktop. Answers customers' general and specific
questions about the products.
Level 4 (Expert) Knows the names of all the products and can review features with customers
without the assistance of the product catalog or sales collateral, if necessary. Is aware of current
world economic and political events and can discuss them in depth on a collegial level with
customers. Can demonstrate online products at a customer's desktop. Answers customers'
general and specific questions about the products.
 How we can evaluate
i. Skills tests
There are selling-skills tests that measure various sales traits or aptitude. Many tests claim to
measure competencies, and they might even produce a report that reads like a competency
assessment. But, in fact, they measure only aptitude — useful for the selection of sales
representatives, but less useful for evaluating performance.
ii. Observations in the field

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The most effective method of evaluating your sales team's competencies is to accompany them
into the field and observe them in action. Use a competency assessment as a guide, and record
what you see. Your representatives will appreciate the time you spend with them, and they will
be much more likely to accept your assessment.
iii. Evaluate sales results
At this point, you have evaluated the competencies and motivation of your representatives. You
have also considered the role that opportunity might have played in your representatives'
performance. Now it is time to look at the most important measure of performance: sales
results.
iv. Evaluate performance against sales goals
The fairest way to evaluate sales results is to measure them against goals. Keep track of whether
your representatives achieve or exceed the goals that you set for them.
Be sure to set goals that support your sales strategy. If your growth strategy is to get more
revenue from existing customers, it's a good idea that your sales representatives' individual
goals state the source of the revenue. Your evaluation measures might include a percentage of
total revenues from existing customers, and an increase in revenues from existing customers
compared with last year. You would not give much weight to any decline in the total number of
accounts.
v. Measure sales results rather than sales activities
Be careful of the activity measures trap. If you measure sales activities (for example, number of
calls or number of proposals), you get activity from your representatives, but it might be at the
expense of results. Instead, measure results such as revenue, profit margins, number of new
accounts opened, and increases over last year.
vi. Evaluate teamwork in complex sales
High-value, complex sales with lengthy sales cycles present a different challenge. Consider
measuring the financial value of opportunities uncovered during the needs assessment, the cost
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of proposed solutions, the amount of profit protected during price negotiations, and the value of
additional business created during follow-up after the sale.
Remember that complex sales require team efforts. Consider and measure the contribution each
team member makes to these sales. A writer revises a proposal. A sales assistant sells,
schedules, and coordinates sales meetings with key people inside the customer organization.
vii. Sound evaluations deliver results
A fair and accurate evaluation of your sales team's performance helps you get the best from
your team. By evaluating performance against goals, measuring results rather than activity, and
choosing the optimal development strategy for each sales representative, you can ensure that
your team is always ready to deliver maximum performance and result.

Name: _________________________ Date: _______________
1. What is communication (3 points)
2. What are the three elements in the communication process? (5 points)
3. What are the basic communication tools? (2 points)
4. How do we get information? (2 points)
Note: Satisfactory rating - 12points and above Unsatisfactory - below 12points
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Maintain and utilize a customer
Information Sheet-6
database
6.1. Maintaining Customer confidentiality as required by store policy and
legal requirements.
Introduction
Customer confidentiality means keeping information about people who use your products and
services private. When a customer patronizes a business, he may have to give information such
as his name, address or financial accounts. Certain services or products may also be
embarrassing for a customer to admit he uses. Keeping customer records confidential
establishes trust between the business and the client. Certain types of customer information
should always be protected, especially social security numbers and credit or checking account
numbers.
 Instructions to maintain customer confidentiality
1. Encrypt any personal information that consumers give to your company over the internet.
You can do this by installing a Transport Layer Security (TLS) or a Secure Socket Layer
(SSL) in your website. TLS and SSL protocols identify your website from a customer's
computer, via a certificate of authenticity. The programs tell the customer's computer to
encrypt the information it is sending with a certain language that the host computer can
understand. Customer information sent from a remote computer to the hosted company
computer will be transmitted in a scrambled language that is indecipherable to hackers.
Contact a TLS or SSL provider to get the scripts and software (see Resources).
2. Black out any important identifying information, like credit card numbers or social security
numbers, before filing paperwork in archives.
3. Create employee log-ins for company computers. Do not let people who haven't been
screened by your security to log-in on the computers or access any databases. Create
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passwords on protected files so that users who illegally gain access to the system will still
not be able to access sensitive information.
4. Files that are particularly sensitive should be kept on a machine that cannot be accessed on a
network. Put the computer and the backup files in a locked room that can only be opened by
people with the authorization to read the information. If the information is sensitive enough
to warrant it, you can install a locking mechanism that only responds to a numbered code or
a specific biometric fingerprint (see Resources.)
5. Separate groups of customers. If you have one large database with lots of customer
information, and it gets hacked, all the information is compromised. If you have separate
databases for groups of customers, along with their personal and financial information, you
won't lose it all if security on one section is breached.
6. Create a code to identify customers. Instead of typing a customer's name on important
documents, just enter her code number. This makes it more difficult for a criminal to
identify that customer, even if he gains access to her paperwork.
7. Ask employees to sign confidentiality agreements. These will put employees on notice that
if they give out business or customer information, they run the risk of a lawsuit
6.2. Customer records accurately developed, regularly maintained and

securely stored according to store policies and procedures.
 Building a Customer Database
This white paper will explain how a customer database could benefit your business and provide
a simple guide to what you need to know before you get started.
A Customer Database - What is it? And how to use it!
Your customer database and potential customer database is the source of your trade. You need it
to generate repeat business in the future, or as a fall back when times get tough and as an
asset of your company when you want to sell up.
The most important thing, above all else, when compiling your database is
 ‘include everyone' that shows even a minute interest in your company and what it is you
do. Everyone that calls or meets you at a convention, venue or meeting is sent
information - you should work toward improving and increasing entries. Without any
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clients your company is worth nothing - so don't neglect keeping records of the people
you meet. Remember that it is the value or the information that you can collect; not the
computer program you are using!
The smallest and largest companies spend lots of money annually on advertising to increase the
amount of business they have and often they don't always target new customers, but the existing
ones they have listed in their database. Keeping contact with customers is a good way to get
repeat business and promote new products to the right people. There are many different ways
that you can maintain contact and interest with different customers and potential customers.
Obviously, the cheapest way to create a customer database is to make your own! Products like
Microsoft Excel or Access are capable of doing such tasks or you could purchase database
software to install or use online.
A problem that many companies run into is creating duplicate records or being disorganized.
This often happens when too many people have access to the database and are continuingly
updating it. Having one person who is in charge of database records is the best way to keep
information organized and easily accessible. Allowing others to read the records is fine; just
make sure that they do not alter anything! If you have the same customer listed 3 or 4 times
within a database, and each mailer you send out costs £5, then you could end up wasting £20 for
contacting one customer.
Don't have too many different databases. One database with a list of customers and potential
customers takes the complications out of record management. A customer is a customer no
matter how different they are from each other, so keep them listed in one file so their details are
easy to access, locate and update. Customers like to think they have a one-on-one relationship
with their suppliers / merchant. Keeping a record of all of your previous activities with each
individual client can help you understand the way they operate and what they could expect from
you in the future. Listing mistakes and errors that may have been made in previous transactions
could be a business-saving strategy if you want to avoid future mishaps/accidents, especially
with the same client.
Make sure you can sort all of your information into categories when you need too. This means
being able to arrange data into groups - i.e. based on location or relevance. If you spend money
on a good database program then this should be easy. You may wish to sort your data so that
you can send out mailers, or generate lists ready for phone calls etc.
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Always update your database. Never have old, outdated or invalid entries as this could cause
confusion and be a waste of time and it could also be illegal. There is no point in sending out
mailers or wasting phone calls on companies that have gone out of business or are untraceable.
This not only wastes time, but can be a good way of losing money as well. Having endless lists
of companies that may no longer exist or are irrelevant to your business is wasteful, so update
on a regular basis and have a spring clean of your records once or twice a year. Keep all the
records you have collected and ceased to use on a separate system otherwise you could end up
buying back the same information from a list broker when you decide to top up your database.
Consider having an obsolete folder to retain all of these types of records.
Consider giving your potential customers some insight into your company. Information is
extremely valuable and can attract new business but be careful about how much you tell people,
as some things must be kept secret. A little taste of what goes on within the inner workings of
your company can help people to understand what you do and who you are. A good way to do
this is to send out a newsletter which is another way you can communicate to people, without
disrupting them with phone calls during busy working hours. This may however generate a lot
of negative interest from rival companies who just want to find out as much as possible about
you and your future plans or investments.
Newsletters are a good way to update people with recent events, future plans and anything else
you wish to convey on a regular or semi-regular basis. Some companies offer a subscription
newsletter, which contains more information and a better insight into your company.
Subscriptions are also a good way to gather information about other people and companies that
you can add into your database.
How to maintain store an accurate customer database
Don’t lose existing customers because of poor data – the cost of keeping your customer
database accurate is much lower than gaining a new customer. Follow this easy guide to
achieving a professional, up-to-date database.
1. Have solid foundations
Put someone in charge of your customer database, set objectives and develop a clear strategy
that includes regular audits of database quality. When you’re building your database ensure that
the initial data capture is accurate.
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2. Clean your data
with 13% of the population moving home every year and over 30% of businesses moving,
closing down or having a change of senior staff, customer databases can quickly become out of
date. Update the customer file regularly by matching the database against gone away
suppression files.
3. Use profiling tools
After each database audit, chances are you’ll lose some customers from your list. You’ll need to
replace them to maintain profitability. Use profiling to locate new prospects who are most like
your current customers, and do this on a new names basis to avoid acquiring records that you
already have on your database.
4. Be honest
Make sure there’s a statement in your Privacy Policy and on the page where you collect data
explaining that you might be sending information from a third-party company. Notify prospects
fully about how their data may be used in the future and check that you are complying fully
with data protection legislation.
5. Get the customer involved
Ensure each communication offers customers the opportunity to update their details.
Catalogues, brochures, order forms and envelopes can all include such reminders. You can also
use inbound order and customer care lines by asking for verification in the course of a call or
via a recorded message on entry.
6.3. Regular customers accurately identified and followed up according to

store marketing policy.
I'm guessing your restaurant has a mix of new customers, regular customers and potentially
what I would call out-of-town/tourist customers.
This leads me to the following two questions
1. How do you define a regular customer? I'm a numbers guy, so I'm thinking it would be
someone who shows up X numbers of times over the past month (frequency), or a burst
of visits (recency) or something grander like a steady stream of visits over a longer time
period (i.e. twice a month for a year) (sustainability). I'm curious how you define a
regular customer for your restaurant.
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2. Is there an ideal mix between new/regular customers in order for a restaurant to be
successful?
You obviously want to have regular customers, they will be more honest with you about
their experience and how it compares to their other visits. This feedback is so valuable. Regular
customers are the backbone of a business. It costs something like 6 times the amount to attract a
new customer than it does to retain an existing one.
6.4. Utilizing Customer records accurately to advice customers on

products and services of possible interest.
 Meaning of customer records and how to utilize it.

Customer records are records an organization keeps about the customer like phone messages,
emails and evaluation forms etc.
Offering a demo or trial of your products(s) is the best way for potential customers to see what
it is that you are really offering, how it works, how it is useful for them. Make is simple for
them to understand and give them a chance to ‘play' or test your product, not only will this
improve exposure but having people test on your behalf will give you vital feedback about
your business or services.
Obtaining names for potential customers is extremely easy now, with companies who
specialize in selling the information of individuals who wish to be contacted by relevant
businesses. This costs money though, and sometimes-extra cash to spend is not always
available. That's why it is important to keep records of all the people you have contact with and
develop your own database. This doesn't happen overnight, but a company with many clients
and contacts is worth a lot more! Also, good clients who are satisfied with your services might
be willing to introduce potential future clients from their own contact lists. This is another way
you can build up your business.
If you do decide to buy in data, different prices are generally set for different purposes - i.e.,
you might pay £0.05 to mail someone, £0.10 to be allowed to mail and telephone but £1.00 if
you want to own the data forever.
Ideally the more you know about potential customers, the better chance you have of targeting
the right people. Collecting, as much information as possible is vital, so attracting people to
your company who are willing to divulge information is what you want. Offering prizes or
giveaways with annual competitions through an e-zine or newsletter can do this. Remember
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that you don't have to offer amazing prizes, cars or holidays to attract people; a case of wine or
something similar in value as an alternative (not everyone drinks!) will often be more than
sufficient.
With your records stored and organized, implementing new strategies and campaigns should be
quick and easy. Future plans can be modeled based on your results from previous projects and
helping you to predict trends for sales and marketing. Loyalty is something you need to think
about when compiling a database. Make a note of more loyal customers or keep them in a
separate file within the database so you can differentiate between those who you may consider
to be a regular customer and those who you can rely on in the future years.
The more information you have about a client, the easier it will be for you to target them and
get results. Often cold calls lead nowhere and the person at the end of the phone will be less
than cooperative. Buying lists of companies that may be interested in your line of businesses
can be obtained from various sources, and can be extremely useful. These large databases are
not always cheap, but they do list people who don't mind getting called from people with
relevant business.
6.5. Implementing Customer clubs and reward schemes where required

according to store promotional activities.
Customer clubs
Customer clubs have been established by many organizations. A customer club can be defined
as follows:
A customer club is a company-run membership organization that offers a range of value-adding

benefits exclusively to members. The initial costs of establishing a club can be quite high, but
thereafter most clubs are expected to cover their operating expenses and, preferably, return a
profit. Research suggests that customer clubs are successful at promoting customer retention.
To become a member and obtain benefits, clubs require customers to register. With these
personal details, the company is able to begin and services for them. Clubs can only succeed if
members experience benefits they value. Club managers can assemble and offer a range of
value-adding services and products that, given the availability of customer data, can be
personalized to segment or individual level. Among the more common benefits of club
membership are access to member only products and services, alerts about upcoming new and
improved products, discounts, magazines and special offers. For example, IKEA FAMILY, the
home furnishing retailer's club, offers members discounts on selected IKEA products, a free
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home furnishing magazine quarterly, news updates via e-mail and discounts on exclusive IKEA
FAMILY products. There are a huge number of customer clubs. One report estimates that there
are ' several hundred ' in Germany alone. 26 B2C clubs include
 Rebate or cash back: rebates are refunds that the customer receives after purchase. The
value of the rebate can be adjusted in line with the quantity purchased, in order to
reward customers who meet high volume targets.
 Patronage awards: customers collect proofs of purchase, such as store receipts or
barcodes from packaging, which are surrendered for cash or gifts. The greater the
volume purchased the bigger the award.

Name: _________________________ Date: _______________
1. What is the benefit of maintaining customer database? (2 points)
2. How do we maintain customer database? (5 points)
3. What is customer confidentiality? (3 points)
4. Write the instructions followed in maintaining customer confidentiality? (2 points)
Note: Satisfactory rating - 12points and above Unsatisfactory - below 12points
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Information Sheet-7 Deal with difficult customers
7.1. Acknowledging Customer complaints/problems and supporting
customer reassuringly to produce positive outcome.
Unhappy customers are bad news for any company, and it only takes one of them to shatter/ruin
a perfectly good day at work for everyone. It only takes one of them to steer/direct many more
prospective customers away from you.
Unhappy customers have their reasons. Some don’t feel well, some have unrealistic
expectations, and others may just have lousy dispositions. However, we must be honest; others
may have a legitimate gripe/compliant, for somehow, some way, we may have been the catalyst
that tipped the scale to take them from annoyed to cranky to downright unhappy.
Whatever the cause, unhappy customers are still our guests and our hope for future business,
and we want them happy again. Said another way, the customer may not always be right, but he
or she will always be the customer we want and we need. So we need to take control of
customer complaints and turn them to our advantage.
Here are 7 steps for resolving customer complaints which have proven to work well. Do not let
time lapse and make things worse with your avoidance. Approach the customer as soon as you
learn they are unhappy, and;
1. Listen Intently: Listen to the customer, and do not interrupt them. They need to tell their
story and feel that they have been heard.
2. Thank Them: Thank the customer for bringing the problem to your attention. You can’t
resolve something you aren’t completely aware of, or may be making faulty assumptions about.
3. Apologize: Sincerely convey to the customer your apology for the way the situation has
made them feel. This is not the time for preachy reasons, justifications or excuses; you must
apologize.
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4. Seek the Best Solution: Determine what the customer is seeking as a solution. Ask them;
often they’ll surprise you for asking for less than you initially thought you’d have to give—
especially when they perceive your apology and intention is genuinely sincere.
5. Reach Agreement: Seek to agree on the solution that will resolve the situation to their
satisfaction. Your best intentions can miss the mark completely if you still fail to deliver what
the customer wants.
6. Take Quick Action: Act on the solution with a sense of urgency. Customers will often
respond more positively to your focus on helping them immediately versus than on the solution
itself.
7. Follow-up: Follow-up to ensure the customer is completely satisfied, especially when you
have had to enlist the help of others for the solution delivery. Everything up to this point will be
for naught if the customer feels that “out of sight is out of mind.”
Problems happen. It’s how you honestly acknowledge and handle them which counts with
people. Customers will remember you, and happily give you another chance to delight them
when you choose to correct problems with the very best you can offer, proving you value them
and their business.
7.2. Encouraging Customer to verbalizing issue and using active listening

to minimize customer frustration.
Difficult customers and situations
To provide effective customer service—especially in difficult situations—we need to deal with

the customer’s emotions first, then the problem. When dealing with difficult customers and
situations, it is important to use the following strategies.
1. Listen
 Use active and reflective listening skills.
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2. Empathize
 Empathy means putting yourself in the customer’s shoes, letting him or her know that
you understand not only the situation, but also how the situation makes the customer
feel.
 When we empathize, we connect with the person’s feelings in two ways: (1) by
making a statement that tells the person we understand the feeling, and (2) by
paraphrasing his or her words to show the person we understand the issue, while not
necessarily agreeing with him or her.
 You can get into trouble if it seems to the client that you are offering legal advice. Stick
to what the agency can and can’t do—and let the client seek an attorney if he or she is
not sure what he or she should do.
3. Respond Professionally
Don’t take the anger personally. As a professional, recognize that customers may have
legitimate concerns buried somewhere in their anger and venting. They may be overreacting,
but you need to remain objective, assess the problem, and focus on solutions.
 Whenever possible, use the customer’s name. This personalizes the conversation and
makes it difficult for the customer to attack you.
 Maintain a friendly manner. Show the customer respect, even in the face of disrespect.
Demonstrate no reaction in the face of difficult behavior.
Use appropriate body language. Move closer to the customer and maintain eye contact. Listen
for the unspoken message. Focus on subtleties in a caller’s voice—inflection, pacing, and the
overall tension level.
4. Recognize Underlying Factors
 Customers may act angry, upset, demanding, impatient, abusive, and threatening for any
number of reasons. These behaviors occur as a result of one or more negative feelings
that have been aroused in the situation.
 Negative emotions, such as:
 I’m frustrated  I’m powerless and a victim

 I’m not important  I’m stupid
 I’m incompetent  I’m guilty
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7.3. Developing Customer’s confidence in the sales assistant and
product/service to promote long term commitment and trust to store.
Commitment is as an essential ingredient for successful long-term relationships. Developing a
customer's commitment in business relationships does pay off in increased profits, customer
retention, willingness to refer and recommend. Relationship marketing literature suggests
customer satisfaction and trust as major determinants of commitment. Customer satisfaction,
1. customer trust,
2. customer relationship value, and
3. customer commitment as key variables for successful business relationship
management.
The influence of customer satisfaction on commitment is mediated by trust and relationship
value.
The Impact of Customer Relationship Value on Commitment
customer commitment as the intention of a customer to maintain a long-term relationship
with a supplier. We believe that a customer’s aim to stick with a supplier in future is
essentially based on positive experience and positive evaluation with the past
relationship. Therefore we regard customer relationship value as an essential
antecedent of customer commitment and assume the following:
Hyp 1: The higher a customer values a business relationship with a supplier, the stronger
the customer's commitment towards the relationship with this supplier will be.
The Impact of Trust on Commitment
Trust has a direct positive impact on commitment: Trust diminishes the perceived risk and
vulnerability in a relationship and thus leads to a higher commitment to the relationship
(Ganesan 1994). Moreover trust reduces transaction costs as there is less necessity to
establish expensive control mechanisms. Lower costs in turn increase the probability to
continue the relationship in future and therefore increase the commitment to the relationship.
Trust can even be called an essential antecedent of commitment: If a supplier is not perceived to
be benevolent, honest or competent enough to show useful behavior regarding the
relationship in question, the customer cannot rely on this supplier and thus will show no
commitment towards the relationship (Morgan & Hunt 1994). There is only one exception to
this rule we can think of: It might be that the supplier has a high amount of power over the
customer, which is usually the case when a supplier is in a certain monopoly position and is
thus very difficult or impossible to replace. In this case, even though the supplier may not be
Page | 63
benevolent, honest or competent with regard to the relationship, the customer will commit
himself or herself to the supplier out of dependency (Ganesan 1994, Kumar, Scheer &
Steenkamp, 1995).
As we understand commitment, however, it does not encompass this form of forced
compliance which can only emerge out of a power or dependency imbalance. As soon as the
power balance in our example will change at the cost of the supplier – e.g. because a
competitor of the supplier enters the market or because the customer will have
the opportunity to replace the supplier by producing the goods or services in question himself
or herself – the lack of trust in the supplier will usually result in the customer quitting
the relationship. Therefore, we assume the following:
Hyp 2: The more the customer trusts a supplier, the higher the customer's commitment to
the relationship with this supplier will be.
7.4. Establishing Mutually acceptable resolution of complaint.
 Customer Complaints and Types of Customers

In this article we will discuss customer complaints and types of customers. The handling of
customer complaints is an important component of providing Superior Customer Performance.
Three important aspects of the complaint process are actively seeking customer complaints,
recognizing the type of customer that is complaining, and responding appropriately based on the
type of complainer.
 Actively Seeking Customer Complaints
It is important to realize that organizations that are totally customer-focused do not just respond
effectively to customer complaints; they actively seek them out. What specific activities does
your organization utilize to provide customers with easy opportunities to register their
dissatisfaction? Are these activities sufficient? Remember, research indicates that for every
complaint expressed there are over 25 unregistered complaints. Many dissatisfied customers just
quietly take their business elsewhere. No news from customers regarding your performance is
not necessarily good news.
 Types of Complainers and How to Respond Effectively
At least five types of complainers can be identified. Each type is motivated by different beliefs,
attitudes, and needs. Consider the following definitions of the types of complainers, how one
might respond to them, and the danger of not handling complaints effectively.
The Meek Customer. Generally, will not complain.
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Response: Must work hard at soliciting comments and complaints and act appropriately to
resolve complaints.
The Aggressive Customer. Opposite of the Meek Customer. Readily complains, often
loudly and at length.
Response: Listen completely, ask: "what else?," agree that a problem exists, and indicate what
will be done to resolve it and when.
Danger: Being aggressive in return. The Aggressive Customer does not respond well to excuses
or reasons why the product or service was unsatisfactory.
The High-Roller Customer. Expects the absolute best and is willing to pay for it.
Likely to complain in a reasonable manner, unless a hybrid of the Aggressive Customer.
Response: Is interested in results and what you are going to do to recover from the customer
service breakdown. Always listen respectfully and actively and question carefully to fully
determine cause. Ask: "what else?" and correct the situation. Like the Aggressive Customer, the
High-Roller Customer is not interested in excuses.
The Rip-Off Customer. The goal is not to get the complaint satisfied but rather to win
by getting something the customer is not entitled to receive. A constant and repetitive
"not good enough" response to efforts to satisfy this customer is a sure indicator of a rip-
off artist.
Response: Remain unfailingly objective. Use accurate quantified data to backup your response.
Be sure the adjustment is in keeping with what the organization would normally do under the
circumstances. Consider asking "What can I do to make things right?" after the first "not good
enough."
The Chronic Complainer Customer. Is never satisfied; there is always something

wrong. This customer's mission is to whine. Yet, he is your customer, and as frustrating
as this customer can be, he cannot be dismissed.
Response: Extraordinary patience is required. One must listen carefully and completely and
never let one's anger get aroused. A sympathetic ear, a sincere apology, and an honest effort to
correct the situation are likely to be the most productive. Unlike the Rip-Off Customer, most
Chronic Complainer Customers will accept and appreciate your efforts to make things right.
Page | 65
This customer wants an apology and appreciates it when you listen. Tends to be a good
customer (in spite of his constant complaining) and will tell others about your positive response
to his complaints.
7.4.1. Handling Customer Complaints
All good managers want to hear about every complaint their customers have. Only when a
complaint has been expressed can the appropriate corrective action be taken. Without customer
complaints management often assumes that everything is okay.
It is estimated that for every customer complaint received, there are at least 26 complaints that
are never expressed. What are the implications of this statistic? Furthermore, a customer with a
complaint is likely to tell 20-25 other customers and potential customers about his complaint.
Therefore, every organization needs a procedure for resolving customer complaints.
 A Suggested Customer Complaint Procedure
Consider the following eight-step customer complaint procedure for handling customer
complaints in your organization:
1. Provide customers with the opportunity to complain.

2. Give customers your full and undivided attention.
3. Listen completely.
4. Ask the key question: “what else?”
5. Agree that a problem exists; never disagree or argue.
6. Apologize.
7. Resolve the complaint. (Ask again: "what else?")
8. Thank the customer for bringing the complaint to your attention.
As you examine these eight steps, determine which ones your organization does most and least
effectively. Use your answers to determine where you need to improve your customer complaint
procedure.
7.4.2. Conclusion
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All customer service personnel need to be trained in handling customer complaints effectively
and being empowered to respond in a positive manner. Upcoming articles will address this issue
in detail.
 Tips & Warnings
 Some customer-service complaints can be resolved with one visit or one phone
call. Lengthy issues should be tracked and reviewed to ensure that progress is
being made. Some solutions do not require prolonged contact with the customer.
 Never call the customer names, tell them they are stupid or use hand gestures to
indicate impatience. You will never win an argument with a customer, but you
could lose the customer.
 If you can't understand a customer because of a language barrier get help. Don't
say, "I can't help you unless you speak English."
 Don't let an interruption to help someone else stop the conversation. The longer
the customer stands waiting for you, the angrier they will get.

Name: _________________________ Date: _______________
1. What is customer compliant (3 points)
2. Why do we actively seek customer compliant? (5 points)
3. Explain the different types of complainers? (2 points)
4. How do you respond to the different complainers effectively? (2 points)
Note: Satisfactory rating – 12 points and above Unsatisfactory - below 12 points
Page | 67
Reference materials
Brunjes, B & Roderick, R. 2002. Customer Relationship Management: Why it does and does not
work in South Africa. Paper presented at the 2002 IMM Marketing Educators’ Conference,
South Africa, September 2002.
Buttle, F. The S.C.O.P.E. of Customer Relationship Management. Available from:

http://www.crm- forum.com/library/aca/aca-07.html (accessed 5 September 2011).
Du Plessis, P.J., Jooste, C.J. & Strydom, J.W. 2001. Applied Strategic Marketing. Sandown:
Heinemann.
Gordon, I. 1998. Relationship Marketing: New strategies, Techniques and Technologies to win
customers you want and keep them forever. John Wiley and Sons: Canada.
Hough, J, Neuland, EW & Bothma, N. 2003. Global Business Environments and
Strategies. 2nd Edition. Oxford: Oxford University Press:.
Kotler, P. 1997. Marketing management: analysis, planning, implementation, and control.

New Jersey: Prentice Hall International.
Kotler, P. 2002. When to use CRM and When to forget it! Paper presented at the Academy
of Marketing Science, Sanibel Harbour Resort and Spa, 30 May.
Lovelock, Christopher 1991. Services Marketing. New York: Prentice Hall International Editions
Harmon, Robert R., and Coney, Kenneth A.: The Persuasive Effects of Source Credibility in Buy
and Lease Situations. Journal of Marketing Research 19 (May 1982): 255–260.
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AGARFA ATVET COLLEGE

Unit of Competence: Build Relationships with

 Establishing rapport with customers

 Clarifying customer needs and preferences

 Maximizing sales opportunities

 Evaluating purchase decision

 Demonstrating effective methods of closing sales

 Establish rapport with customers

 Clarify customer needs and preferences

 Understand Maximizing sales opportunities

 Evaluate purchase decision

 Explain Demonstrating effective methods of closing sales

This learning guide relate to Session Plan-04 of M01-LO1

1. Read the specific objectives of this Learning Guide.

2. Read the information written in the “Information Sheets 1”.

4. Accomplish the “Self-check-1”

7. Read the information written in the “Information Sheet 2”.

8. Accomplish the “Self-check 2”.

9. Read the information written in the “Information Sheet 3”.

10. Accomplish the “Self-check 3”

11. Read the information written in the “Information Sheet 4”.

12. Accomplish the “Self-check 4”.

13. Read the information written in the “Information Sheet 5”.

14. Accomplish the “Self-check 5”.

15. Read the information written in the “Information Sheet 6”.

16. Accomplish the “Self-check 6”.

17. Read the information written in the “Information Sheet 7”.

18. Accomplish the “Self-check 6”.

1.1 Establishing Rapport with Customers

What means the customer and who are your customers?

Can you become the expert in your field?

Technology offers great opportunities for adding credibility to your business

 Use quality signage.

 Framed certificates and qualifications held by you and your staff.

 Consumer Preferences and Related Concepts

 Ways of maximizing sales

1. Add-on or complementary selling and,

1. Add-on or complementary selling

 customers not returning to shop in the store again

 ‘I’ve been looking for one of these for years!’

 Close: ‘Which of these would you prefer, A or B?’

Self-Check 1 Written Test

Name: _________________________ Date: ________________________

2.1. providing Customer with accurate information regarding product

 Accurate information allows the customer to plan accordingly. Inaccurate information

A warranty may be express or implied depending on what you bought.

2.2. Providing Detailed knowledge of supplier and/or manufacturer

Get your customers involved

Handle with care

There are a couple of additional rules to bear in mind.

2.4. Maximizing Customer interest in product/service through price

 Be the first to concede on a major issue.

2.5. Calculating Prices and/or discounts accurately according to pricing

 Cost plus a percentage of the cost. (usually service oriented)

 commodity (many buyers/competitors, non-unique products) - minimal pricing

 Prospect's perception of your product (positive perception = higher price)

 The Product or Service

 Does your offering provide tangible versus intangible benefits/differences? Offerings

2.5.2 Store policy

2.5.3 Product Pricing

Name: _ Date:

Name: ___________ Date: _