The sales process
The sales process: the stages a customer passes through, from first noticing a product to being supported after they have bought it.
- First contact: an advert, the website, the shop window or a phone call creates interest and sets the customer's first impression of the business.
- Finding out what the customer needs: staff ask about budget, use and preferences, so they are solving the customer's problem rather than guessing at it.
- Advising and demonstrating: the product is matched to those needs and shown working, and any doubts the customer still has are answered.
- Closing the sale: price and terms are agreed, payment is taken, and delivery, credit or fitting is arranged clearly enough that nothing surprises the customer later.
- After the sale: delivery, installation, training, support and putting problems right decide whether this customer ever buys from the business again.
- Service runs through every stage and the customer can drop out at any of them, so a poor greeting loses a sale the product itself would have won.
- At an Arnold Clark showroom the process runs from the online advert, to the test drive, to the finance paperwork, to the first service a year later.
- A buyer left standing on the forecourt never reaches the test drive, so the dealership loses a £20,000 sale before the car has been discussed.
Why good service matters to the business
- It completes sales that would otherwise be lost. A customer who cannot get an answer, or who waits too long to be served, leaves having bought nothing.
- It brings customers back. Repeat purchases are the cheapest sales a business can make, because it does not have to advertise to win the same person twice.
- It cuts the cost of putting things right. Getting the sale right first time means fewer refunds, fewer returned goods and fewer staff hours spent on complaints.
- It builds a reputation that works before the customer arrives. Recommendations and reviews bring in people who already expect to be looked after, so the selling starts from a position of trust.
The full list of benefits, and the dangers of getting service wrong, are set out in the benefits and dangers of customer service.
Competing on service rather than on price
- Where rivals sell a near-identical product, service is often the only thing left to compete on. Two banks offer much the same current account and two merchants stock the same timber, so how the customer is treated becomes the reason to pick one.
- The alternative is cutting the price, which takes money off every single sale and which a rival can copy by the next morning.
- Service is harder to copy, because it rests on training, staffing levels and the way the business is run rather than on one decision about a price label.
- Service can even support a higher price, since customers will pay more for expert advice and for knowing a problem will be sorted out.
- This matters most on expensive or complicated purchases, such as a kitchen or a hearing aid, where the customer is frightened of choosing wrongly.
- Screwfix and Toolstation stock much the same fixings at much the same prices, often on the same retail park.
- The branch whose staff know the stock and have the part on the counter in two minutes keeps the builder, without either firm dropping its price.
Analysing the techniques a business uses
- Analysing a technique means following it through to an effect on sales, costs or reputation, instead of stopping once you have named it.
- Product knowledge: trained staff give advice that fits, the customer buys the right item first time, fewer goods come back, and the customer trusts the shop with the next purchase.
- Customer engagement: a customer who feels listened to stays longer and takes the suggested extra item, so the average amount spent per visit rises.
- Post-sales service: a fault put right without an argument means the customer buys their next appliance from the same shop rather than a rival, so one repair protects years of sales.
The techniques themselves are explained in full in the methods of good customer service.
- A common wording is analyse the importance of good customer service to this business, so build one developed chain from a technique to a business result rather than four short assertions.
- Name the stage of the sales process you mean, so that before the sale and after the sale do different work in your answer.
- Use what the case tells you about the product and the competition, because service is central for a kitchen fitter and secondary for a car park.
- The mistake students actually make is writing that good service is essential for every business, which says nothing about the firm in front of them.
- List the stages of the sales process in order.
- Why is a repeat customer cheaper for a business than a new one?
- Why is competing on service safer for profit than cutting the price?
- Follow product knowledge through to an effect on the business's costs.
- At which stage of the sales process does post-sales service happen, and why does it affect future sales?