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Know Your Customer: Know Your Product – Part 1

Every day, existing customers and new customers will call or walk into your office interested in spending their money.  They have a desire or a need to buy the various products and services you offer. 

Will one of the national cellular companies serving your local market offer an affordable plan with a sizeable number of minutes to call anywhere in the country?  Or will a cable television company come along offering high-speed Internet access at a discounted rate if customers have their cable television service with them?  What if another local dial-up Internet service has pricing a little more affordable than yours?  Can you compete with that? 

Rural telephone companies across the US are losing access lines and long-distance revenue to competition from cellular companies.  Power companies and telephone companies in many markets are competing with cable television, satellite and other providers for high-speed Internet service. 

So what will prompt that customer to decide to purchase your product?  Many factors come into play, but the bottom line is always the same.  Will the customer's perception of the value they receive from buying your product or service exceed the price they will pay? If not, the chances of them choosing your product are significantly reduced.  Does your company provide better customer service and technical assistance for the same price as your competitors?   How are you making your products and service more beneficial to both your existing customers and future customers? 

Your Customer Service Representatives are your first opportunity to sell that customer on your product or service.  Your CSR's actions are just as important as what you are selling and how it is being sold.  The skills and knowledge your employees demonstrate during customer interactions play a critical role in the customer's decision. 

Here are some friendly suggestions for your employees: 

1. Develop a relationship with each customer 

People prefer to do business with others they like and trust.  How many companies have you personally called in the last 72 hours?  How many times were you greeted by a warm and friendly person who was enthusiastic and demonstrated a desire to make sure your questions were answered and your needs were met?  

There is a great advantage to face-to face interactions because we can use our body language in addition to what is being said to support our communication. This advantage is lost when we communicate over the telephone.  Research of telephone conversations concludes that 87 percent of our communication is a result of our voice quality while only 13 percent is from content.  Our voice, tonality and pitch are the biggest part of communication. 

Voice inflection is a vital part of the Customer Service Representative's communication on the phone.  Do your CSR's come across as robotic or do they communicate the feeling that they are ready and willing to help that customer with what ever they have?   

Do your CSR's have a bored or impatient tone of voice?  Do they ask questions to find out what the customer needs or do they answer in short sentences? 

2. Actively listen to what the customer or potential customer is saying 

CSR's are asked the same questions and are giving the same answers every day. This repetition can become boring.  Practice active listening by asking questions to confirm they clearly understand what the customer said.  Words and phrases like "okay," "right" and "I see" interspersed during a conversation tell the customer the CSR is listening.   

Confirming what the customer said shows the CSR is listening.  It also clears up any opportunities for miscommunication. 

3.  Understand what your customer wants 

Most people shop for a product based on a price, but they purchase based on the benefit they believe they will receive from ownership of that product.  When a customer buys a cell phone, DSL or any other product you offer, they are buying because the perceived benefit will fill a need. 

Many CSR's quote the price and expect the customer to make a decision based solely on that information.  Don't get me wrong - price is important to most of your customers in their buying decision.  However, price may not be your competitive advantage. 

CSR's should strive to create a dialogue with your customers to determine their motivation for buying that product.  Open-ended questions help your CSR's understand the buyer's knowledge level about the product as well as their emotional need for the product.  Open-ended questions help your customer tell you how they feel, what they want or what they think.   

For example many customers have a fear about purchasing DSL because they don't understand how it works.  CSR's should educate those customers on how the product works and the benefits of DSL so they will be comfortable in making a buying decision.   

Find out what the customer's concerns are and then address them one-by-one. 

An open-ended question is one that you cannot answer a yes or no.  The answer must reveal something deeper.  Some examples of open-ended questions are: 

§         What prompted you to inquire about DSL service? 

§         What about DSL is appealing to you? 

§         What concerns might you have about DSL? 

§         What information do you need in order for you to be comfortable purchasing DSL? 

§         What do you use for the Internet now? 

What open-ended questions can your CSR's as to determine what the customer wants or needs?    

Next week we will release Know Your Customer: Know Your Product – Part 2 which continues the process of drawing in potential customers and keeping the customers you already have.  Are your CSR’s able to readily answer questions about your products or do they rely on “cheat sheets” and asking others for the answer?  Do they know who the competition is and what they offer?  How much training does your company offer on your products and services?  Does everyone in the company get the same training? 

These are just a few questions that will come up in next week’s newsletter. 

Our website offers many articles and previous newsletters on this subject.  The link below is for our Customer Service Survey that we have gotten a lot of great feedback on in the past.  If you are have problems using the link copy and paste it into the address bar on your browser.  

http://measure-x.com/newsletter/customer-survey.html

MEASURE-X
6227 North 15th Street, Phoenix, AZ 85014
888-644-5499 www.measure-x.com
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