Introduction to Relationship Selling

Divyanth Bhavana Himavan Zubair Sri Krishna

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INTRODUCTION TO RELATIONSHIP SELLING

Learning Objectives
Identify and define the concept of relationship selling Understand the importance of a customer-centric organization Explain why value is a central theme in relationship selling Identify the processes involved in relationship selling Identify the elements in managing relationship selling Discuss and give examples of the elements of the external and internal environment for relationship selling

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INTRODUCTION TO RELATIONSHIP SELLING

A Model for Relationship Selling and Sales Management - Overview

Firms successful at relationship selling and sales management:

Are customer-centric Are highly customeroriented Exhibit a customer mindset
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INTRODUCTION TO RELATIONSHIP SELLING

Customer Orientation
Firms that have a high level of customer orientation:
Focus on understanding customers requirements Generate an organization-wide understanding of the marketplace Respond effectively with innovative products and services
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INTRODUCTION TO RELATIONSHIP SELLING

A Model for Relationship Selling and Sales Management - The Customer The customer is at the center of the model Return on customer investment Lifetime value of a customer

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INTRODUCTION TO RELATIONSHIP SELLING

INNOVATION

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Want to Think Like a Customer? Mistakes to Avoid Always

1. Doing it your way, not the customers way 2. Focusing on your objectives, not the customers 3. Pushing for a client meeting as though it is the end game 4. Pushing the customer 5. Failing to listen
Source: John R. Graham, Think Like a Customer Or Lose the Sale, American Salesman (January 2002), p.3.

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

INTRODUCTION TO RELATIONSHIP SELLING

INNOVATION

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Want to Think Like a Customer? Mistakes to Avoid Always

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

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

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

INTRODUCTION TO RELATIONSHIP SELLING

A Model for Relationship Selling and Sales Management Value Creation

Value is the bundle of benefits the customer derives from a purchase Give-get ratio Value creation - adding value for a customer beyond an isolated transaction
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INTRODUCTION TO RELATIONSHIP SELLING

EXHIBIT

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Time Investment in Each Stage of the Sale

Value-added selling

Developing an understanding of the buyers needs

Presenting your solution

Closing the sale

Traditional selling

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INTRODUCTION TO RELATIONSHIP SELLING

A Model for Relationship Selling and Sales Management Relationship Selling Process elements of relationship selling:
Using information Communicating the sales message Negotiating for win-win solutions

Closing the sale and followup

Self-management
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INTRODUCTION TO RELATIONSHIP SELLING

INNOVATION

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The Importance of Follow-up

Attrition for first-year accounts is more than twice that of long term accounts due to:
Early problems that sour the relationship No formal servicing system Communication breakdowns

Avoid the early break-up by:

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Saying thank-you Seeking feedback early Responding quickly

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

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

INTRODUCTION TO RELATIONSHIP SELLING

EXHIBIT

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Components of the Internal Environment

Goals, objectives, culture

R&D and technological capabilities

Personnel The Firm The Custome r

Service capabilities

Financial resources

Production and supplychain capabilities

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INTRODUCTION TO RELATIONSHIP SELLING

Internal Environment
Southwest Airlines' corporate environment
Places the employee at the center of its business model Promotes fun

Hires people by tryouts

Lends itself to a favorable service culture
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INTRODUCTION TO RELATIONSHIP SELLING

EXHIBIT

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Components of the External Environment

Legal and political

Economic

The Firm The Custome r

Natural

Technological

Social and cultural

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