There are a number of external factors strongly affecting the business world these days and managers sometimes fail to see, or take advantage of, the relationships between them.
One of the more damaging of these is the propensity to battle for market share by cutting prices and accepting reduced revenues…a common tactic when the economy is in a slowdown. Having one competitor start down this path is bad enough, but soon others are following out of desperation. With margins that leave little room for such self-destructive behavior, firms soon find themselves living off what reserves they may have left from better years.
This is of particular concern in the business-to-business industry where bottom line costs can be the major issue in the buying decision process. If you can’t match the competition’s lowered prices you may find yourself left out in the cold, even with old and established customers.
Another issue of growing importance is that of trust. Corporate scandals in the news may not influence business people the same way they do the general public, but there is an effect. Our customers may be starting to look at us with more cynicism than in the past. The trust they have in their vendors, and the salespeople from those firms, helps determine the comfort level they feel when deciding whether they will make an order.
To what degree the buying decision, or choice of vendor decision, is based on the price factor versus the trust factor varies from one customer to another. In most cases the price factor will always seem to be paramount, but the issue of trust will play a part whether that part is a conscious, or subconscious, one.
When we uncover some of the underlying issues behind buying decisions we can begin to use that knowledge to our advantage. Winning new customers and keeping your old ones without having to gut your profits becomes a possibility.
The issue of trust goes beyond customer service, which is often a crucial element in determining which vendor is finally chosen. Trust reflects not only that your customer knows your service will be good, it’s a promise that the service will be timely, done thoughtfully, and will advantage the customer in some value-added way.
When the service department not only gets the work done on budget and on time, but maintains a reputation of standing by their work no matter what happens…then they have gone beyond just good customer service. They have developed a level of trust in favor of their firm. Your people help deepen that trust when warranty work is done quickly and without fuss, when refunds are made cheerfully, and when customers are treated as if you trust them.
There’s a good deal the billing, customer service, shipping, and warranty people can do to foster and grow the level of trust customers have in the firm. But what can sales, marketing, and public relations people do to help, particularly when communicating to prospects who have never purchased from you and have no history with those other departments.
Simply exclaiming that “our firm is trustworthy” or “we’re the most ethical company in this town” is not going to work. It comes out as puffery at best and a flat-out lie at worst. When you make a point of bragging about ethics, a lot of people are going to assume there has been negative stuff in your past and that you’re trying to gloss over it.
But you do want to communicate a believable and ethical picture of the firm, particularly at the first communication or sales presentation. The means of doing so can be found in deciding what messages are the most positive about your firm and your ability and desire to serve the new customer. Here are some key points that will help make certain a salesperson leaves the right impression:
- Make ethical behavior toward the customer a part of your corporate mission.
- Make certain your salespeople are trained in ethical sales behavior and understand it’s expected of them.
- Train salespeople in consultative selling techniques instead of the “hard sell.”
- Teach salespeople to respect their clients and prospects. After all, those prospects are business people just like you. You want your salespeople to treat them as you would want to be treated.
- Make sure salespeople never “over promise” on a product. When they exaggerate what the product or service is you will have an unhappy client in the end. Then there will be no trust in your organization.
- Make certain the sales pitch and your written material emphasize how long you have been in business, how stable your company is, and how many firms have long relationships with you.
- Make sure to include some third-party endorsements. Endorsements are especially good if the endorsers are local and known to prospects.
- Offer references. Talk to your longest held and most satisfied customers and get permission to use them as references. Leave the list with the prospect and urge them to call and verify what you can do for them.
