SE - 076 Pretest

Which of the following is one way that good customer service has a positive effect on sales relationships:

• Offers financial assistance

• Encourages follow-up

• Suggests new information

• Promotes repeat business

Answer explanation

Promotes repeat business. Most companies realize that repeat business is important in order to be successful. One way to promote repeat business is to provide customers with good service that builds lifetime sales relationships. Customers who are satisfied with the service they receive usually continue to do business with the company. Good service helps create loyal customers who are less likely to be influenced by competitors. Following up with customers, offering financial assistance, and suggesting new information are methods of providing customer service.

Over time, product price and quality can be easily matched by competitors. The real competition among businesses begins with

• customer service.

• online reviews.

• promotions.

• product longevity.

Answer explanation

Customer service. If you offer a product with the best price and the best quality, you might think you’ll beat all the competition. Unfortunately, that will only get you so far—over time, price and quality can be easily matched among competitors. In selling, customer service is where the real competition among businesses begins. For example, imagine you’re a salesperson for a company that manufactures tires to sell to automakers. The tires you make aren’t much different than the tires your clients could get from any other company, and the prices are similar, too. That’s when customer service becomes key. Are you available when your clients need you? Are you willing to help them when they need to change orders? Can you help your customers if there’s a problem with their shipments? These are the actions that will separate your company from the rest of the pack. Promotions, online reviews, and product longevity may help your product sell, but customer service is where the competition among businesses truly begins.

Which of the following is an example of showing appreciation to customers throughout the sales relationship:

• Make unexpected visits.

• Give elaborate gifts.

• Carry on long conversations.

• Send special-occasion cards.

Answer explanation

Send special-occasion cards. Following up with customers is a way of showing appreciation and providing good service. Successful salespeople know that their customers are important and that the relationship must be continually developed. Periodically thanking customers is one way of showing appreciation. There are many ways to let customers know they are valuable, such as sending cards on special occasions, writing brief notes, sending newspaper articles that may be of interest to them, or calling with ideas for solving problems. Salespeople should avoid making unexpected visits or carrying on long conversations because it wastes the customers' time. Giving elaborate gifts would be inappropriate and may even offend some customers.

A customer service activity that salespeople can use to facilitate sales relationships is

• cold calling.

• asking questions.

• following up.

• trading down.

Answer explanation

Following up. Salespeople who follow up with customers are providing service and creating goodwill that helps develop positive relationships with customers. Salespeople can follow up with customers in many ways, such as sending thank-you letters, calling to make sure the products are satisfactory, and offering to assist with future purchases. Customers appreciate knowing that their business is important and usually continue to buy from salespeople who provide service after the sale. Cold calling involves making unannounced visits to prospects. Asking questions is not a customer service activity. Trading down involves suggesting a lower priced product than the one originally requested by the customer.

Jim trains his salespeople to identify and fix sales-related problems quickly and efficiently. If Jim's training efforts improve customer service levels, how is the business likely to benefit?

• Increased profits

• Service enthusiasm

• Better advertising

• Customer convenience

Answer explanation

Increased profits. Doing things right the first time, having efficient methods to correct problems, and implementing cost savings lead to increased profits. It is usually less expensive to prevent problems than it is to correct them. Identifying and fixing sales-related problems are not actions that improve advertising efforts. Customer convenience shows you put the customer first, therefore, making it easier for the individual to share problems or complaints. Service enthusiasm involves providing quality customer service at all levels.

Organizations often develop customer service activities that are based on their customers'

• objections.

• personalities.

• expectations.

• referrals.

Answer explanation

Expectations. Successful sellers try to consider the customer's needs after the close of the sale and develop service activities appropriate for the product. For example, a customer who purchases a meal in a restaurant has different expectations than a customer who purchases a car. The restaurant customer expects the food to be cooked, fresh, free of bacteria, and tasty. A car buyer might expect the new car to have a service or replacement warranty for vehicle parts. The customer expects the seller to fix the car if a part is defective. Therefore, customers have different expectations in terms of types and levels of service based on the nature of the product. Referrals are prospects provided to the seller by the buyer. Since everyone is different, general customer service practices cannot be determined by individual personalities. Objections are points of difference between a customer and a salesperson that may prevent a sale.

Which of the following is a function of customer service that salespeople can use to build relationships:

• Showing appreciation

• Entertaining often

• Evaluating performance

• Telephoning daily

Answer explanation

Showing appreciation. One way that salespeople can build relationships with customers is to show their appreciation to customers for their business. Without customers, salespeople would not have jobs and companies would not survive. Therefore, it is important to let customers know how important they are and that they are appreciated. To do this, salespeople often send thank-you cards, additional information that may be useful, congratulatory notes if customers have received awards, etc. The purpose is to let customers know that salespeople are thinking of them and value their business. Entertaining may be appropriate occasionally but not regularly. Salespeople should call when necessary rather than daily unless there is an important project or issue to discuss. Customers usually evaluate the performance of salespeople instead of salespeople evaluating the performance of customers.

What can salespeople do to maintain good relationships with existing customers?

• Ask for new referrals

• Live up to their promises

• Send customers expensive gifts

• Use customers in advertisements

Answer explanation

Live up to their promises. An important part of providing quality customer service involves salespeople doing what they say they will do. By living up to their promises, salespeople will be able to maintain good relationships with existing customers. Customers will know that they can rely on salespeople and that they will receive the service and support that they need. Breaking promises is a sure way to lose valuable customers. Businesses sometimes use customers in advertisements, but that is not a way of maintaining good relationships. Salespeople often ask for referrals from customers with whom they have good relationships, but asking for referrals does not maintain the relationships. It is usually considered inappropriate to send customers expensive gifts that may be misinterpreted as bribes.

What is an effective follow-up activity that salespeople can use to provide good service and develop strong relationships with customers?

• Sending articles about local competitors

• Calling to make sure the products are satisfactory

• Asking for referrals

• Explaining the company's business plan

Answer explanation

Calling to make sure the products are satisfactory. Following up with customers is one way to provide good service and develop strong relationships. There are several effective follow-up activities and one is to call customers to make sure the products are satisfactory. Customers appreciate knowing that their business is important and that salespeople care enough to call to check on the products they sell. Salespeople who follow up usually create goodwill and develop strong relationships with customers who often continue to buy from the salespeople. Asking for referrals is a way of identifying potential new customers. Salespeople usually do not explain the company's business plan. Salespeople might follow up by sending information about the company and new products, but they would not send articles about local competitors.

Which of the following is a positive outcome for a business when its salespeople consistently provide excellent customer service as part of the selling process:

• Competitive disadvantage

• Improved quality

• Positive reputation

• Increased commissions

Answer explanation

Positive reputation. When salespeople consistently provide excellent customer service, customers are satisfied and are likely to purchase again. Customers are also likely to tell friends, relatives, and colleagues about the business. This word-of-mouth promotion is one way the business can build a positive reputation and increase its customer base. Excellent service does not always improve product quality. Higher commissions are positive outcomes for the salesperson rather than the business. When salespeople provide excellent customer service, the result can provide a business with a competitive advantage over its competitors rather than a disadvantage.