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Human Relations MGMT611

Lesson 23

BUILDING GOOD RELATIONS WITH CUSTOMERS

Quotations

There is only one boss: the customer. And he can fire everybody in the company, from the chairman on

down, simply by spending his money somewhere else.

Sam Walton (1918 - 1992) U.S. retail executive.

We should never be allowed to forget that it is the customer who, in the end, determines how many people

are employed and what sort of wage companies can afford to pay.

Alfred Robens (1910 - 1999) British labor leader and industrialist.

This lecture is the continuation of the two previous lectures. This is related to the good relationships with

the customers. We will try to understand the importance of the relationship of the seller with the buyer.

Dealing with the customers is a difficult and tedious thing because you do not have the knowledge about

customer's needs, likes/dislikes etc. The occupational and professional skill is extremely important for the

business.

In order to understand the importance of good relations we take here a research example.

Reasons

for

Non-return

Customers

American Research

· Indifferent attitude of an employee

68 percent

· Product dissatisfaction

14 percent

· Competition

09 percent

· Buying from a friend's establishment

05 percent

· Moved away

03 percent

· Died

01 percent

Customers discontinue patronizing a retail or service business for a variety of reasons. Experience indicates

that 68 percent of the customers do not return because of the indifferent attitude of an employee, 14

percent because of product dissatisfaction, 9 percent because of competitive reasons, 5 percent shop at a

friend's establishment, 3 percent move away and 1 percent die.

(It is an American Research and does not really fit to our environment. But it has a strong and good

message for specific employers and employees).

Poor treatment at the hands of an employee can be instrumental in the loss of a customer. Good treatment

does not ensure that the customer returns, but it will go a long way in creating favourable inclination to do

so.

Important points for building good relations

Here we discuss some of the important points that a salesperson should keep in mind.

1. Salesperson Represents the Business

If salespersons' behaviour is good the other weaknesses of the product can be overcome.

2. Merchandise Knowledge

Salespeople should have the knowledge about the product or service they are providing. They must be

aware of the competitive edge of their product.

3. How to Study the Customer

Pay attention to the behaviour, dressing and style of the customer. This is how you can understand the need

and requirement of the intended buyer.

4. Approaching the Customer

Approach the customer politely, with a positive and caring attitude.

5. Greeting the Customer

Greeting the customers plays an important role in developing good rapport.

6. Show and Tell

Show the customer what he/she is looking for.

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Human Relations MGMT611

7. Features vs. Benefits

Try to demonstrate the benefits of the product instead of its features. Those benefits should be

demonstrated according to the needs of the customer.

8. Sales Resistance

Customers often resist buying, salesperson should be capable of removing resistance.

9. Excuses vs. Objections

Buyers should be satisfied through communication. When they find excuses and objections regarding

products; an intelligent salesperson will try to remove the objections.

10. Suggestive Selling

Some time the good behaviour of the salesperson suggest the customer to buy such things in which he/she

was initially not interested.

11. Closing the Sale

In the end the customer should feel satisfied with the product he/she bought. If the customer was satisfied

he/she will return to the seller again.

12. Customer Service

Customer should be provided with good service. After sale service is also very important.

13. Poor cooperation can often be traced to improper communication.

Salesperson should try to create goodwill through proper communication.

14. Employees will be as good or as bad as employers allow them to.

Employees are the representatives of the employers. Their attitude and behaviour should be polite and

caring with the employees.

Building good relationships with customers

Success on the job also requires good relationships with both external and internal customers. An employee

whose thoughts and actions are geared toward helping customers has a customer service orientation.

Good service is the primary factor that keeps customers coming back. Profits jump considerably as the

customer is retained over time. Suggestions for achieving high-level customer service are as follows:

1. Establish customer satisfaction goals.

2. Understand your customer's needs and place them first.

3. Show care and concern.

4. Communicate a positive attitude.

5. Make the buyer feel good.

6. Display strong business ethics.

7. Be helpful rather than defensive when a customer complains.

8. Invite the customer back.

9. Avoid rudeness.

In short, good customer service stems naturally from practicing good human relations.

References:

Dubrin, A.J. (2005). Human Relations: Career and Personal Success. Upper Saddle River, New Jersey,

07458.