What’s the most important part of a new customer relationship? What must all salespeople be able to accomplish with respect to how they sell and service your customer base? More importantly, how can your sales team set the table for your customer service department to succeed and for your company to position itself as your customer’s vendor of choice? In order to answer these questions, think of the importance of managing customer expectations. Think of how the expectations of customers vary and how these expectations are based on prior experiences. If your company doesn’t properly define your service capabilities, your customer will do it for you!
Granted, this all seems like a tall order, but the reality is that salespeople must clearly define the company’s service capabilities. To be successful means the company itself must understand that when it comes to B2B (business to business) sales & marketing, the service capabilities of one company are almost always different from its competition. Yes, there are standards in the industry and yes there are some essential customer service practices that all companies must follow. However, there is an inherent difference between managing the expectations of a company in a B2B environment, versus a B2C (business to consumer) environment.
Don’t Assume, Use Facts!
The worst mistake to make in managing a customer’s expectations is to assume they’ll know how you’ll service them. This often happens when companies assume what the market’s service standards are. It’s essential that you define your company’s current service capabilities. Outline your strengths and abilities but be cognizant of your weaknesses. Don’t be so willing to offer up these weaknesses, but don’t so arrogant as to ignore them. Present the facts! Otherwise your customer will be left to their own assumptions, ones that are based on previous experiences and ones that likely aren’t matched to your capabilities.
Explaining what you can and can not do, must always be a part of the process. If you’re concerned about how the customer will respond once they realize you can’t do something, just think about how they’ll respond when you don’t do it and they expected you to. Don’t allow this to happen. Make sure your sales team properly manages expectations. Here’s what they should cover.
1. Product Lead Times: Your company may stock standard product and pride itself on delivering orders with minimal lead times, or you may be a manufacturer of custom-made designs. Either way, your customer must be made aware of your position and what your product lead times are. Yes, some competitors will be able to deliver products sooner, and yes that might be an issue. However, when you take the time to explain what your current turn times are, and the steps you are taking to improve those times, then you have defined your current service capabilities. Your customer won’t be left wondering why their product is taking so long and won’t be left to assume when it will arrive!
2. Payment Terms: Every company encounters issues with cash flow. Your customers are no different. They too want to retain as much capital on hand as possible. They may have been dealing with a vendor who provided them with 60 day terms, but if you don’t discuss your standard 30 day terms with them, how will they know? Discuss your terms with your customers at the outset of the relationship.
3. Core Competencies & Possible Synergies: The best relationships occur when both customer and vendor are willing to have a free exchange of ideas and approaches. That only happens when both are willing to discuss each party's core competencies. Your company may have some capabilities that lend itself well to your customer’s needs. Investigate each party's needs and look for possible synergies.
4. Shipping Location & Costs: Your customer’s costs on incoming shipments of finished goods is an extremely important factor of their inventory costs. You must clearly define your shipping locations and the shipping terms your company uses.
5. Product Warranties: Standard product warranties must always be a part of any initial discussion. Your customer needs to compare service levels and abilities from one vendor to the next. This ultimately involves being aware of any product warranties and possible service & repair costs.
You can access this video by going to the following: The Importance of Managing Your Customer's Expectations
Properly managing customer expectations sets the bar and clearly defines how your company’s sales and customer service department will work with the customer. After this, nothing is left to interpretation. Nothing is left to the customer’s assumptions. Again, if you think your company’s current capabilities aren’t sufficient to get your foot in the door, then do what you can to address those deficiencies for the future, but never ignore them or pretend they don’t exist. Your customer will eventually find out, so it’s best to discuss it with them beforehand.
Remember, managing your customer's expectations is the most important aspect of sales success. Everything comes afterwards. Everything follows from how you've set the table. If you haven't properly managed their expectations, your customers will do it for you. In the end, they will assume total control, thereby forcing you to go above and beyond your service capabilities.
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