Instructions for trainer

1. Instructions for trainer • To use this presentation for training • Please view slides by • Click ‘ view’ • Click ‘slide show’ • Press ‘page down’ to move through slides • Press ‘esc’ to stop at any time • To access support materials for trainer • Click ‘view’ and then click ‘by notes’ • There are trainer notes to help you deliver the program

2. Southeast Europe Enterprise Development SEED Linkages Program: Sales & Customer Service

3. Objectives • Sales Benefits, Expectations & Action Required • Sales vs. Customer Service • Break • Sales: Customer Acquisition & Exercise • Lunch • Sales: Customer Acquisition cont. • Customer Service: Customer Retention • Break • Customer Service Exercise • Operationalising Customer Service • Summary

4. Objectives • Throughout this day of training there will be: • Theory • Exercises • Tools to take away • The intention of this training is to help you: • Understand how Sales & Customer Service operates within the Linkages Business Environment • Understand how Sales & Customer Service can assist Stakeholders achieve business objectives • Understand the difference between Sales & Customer Service • Understand the fundamentals of Sales & Customer Service, including how to: • Acquire Customers • Retain Customers

5. Your expectations! What do you want to get out of today?

6. Your Sales & Customer Service experiences! As a group: • Discuss your best Sales and / or Customer Service Experience, outlining why you liked it • Discuss your worst Sales and / or Customer Service Experience, outlining why you didn’t liked it • Discuss your responses to the self assessment questionnaire

7. Problems Faced by Distributor Currently many business problems are faced by the Distributor when selling Large Company products Product information not available No Customer Service training Irrational Store Location Limited Store Design Uncoordinated Service Terms Second Hand or Old Sales Equipment/ Machinery Poor Sales Analytical Capability Poorly defined product mix Disorganised Staff Insufficient Sales Training Imprecise Customer Information Limited Sales techniques Inefficient Sales Process Order Cancellations by Customer Sales Cannibalisation No Measurement of Sales efforts No Planning of Service Standards

8. Objectives • Sales Benefits, Expectations & Action Required • Sales vs. Customer Service • Break • Sales: Customer Acquisition & Exercise • Lunch • Sales: Customer Acquisition cont. • Customer Service: Customer Retention • Break • Customer Service Exercise • Operationalising Customer Service • Summary

9. Sales Training • In this section, you will cover: • The benefits of sales activities to all Linkages Stakeholders (Distributors & Large Company) • How the Linkages environment leads to Stakeholders having expectations of each other • How these expectations require Stakeholders interacting in a Linkages environment to undertake certain actions and work with each other

10. Suppliers Manufacturers Distributors Retailers End Customer Stakeholders Information Product Finance Upstream • Suppliers- provides raw materials, components, semi-manufactured products etc Downstream Information Product Finance • Manufacturers – makes the end product by assembling the raw material, components etc • Distributors - provides the end product to the retailer or end customer • Retailers – provides the end product to the end customer • End Customer -buys the end product Each stakeholder is involved in some way in the creation of the end product i.e. the item which is sold to the end customer

11. Group Exercise Sales is an interdependent process • To increase profit & market share and develop their Brand, both Stakeholders are reliant on either party getting something ‘right’ • Increased profit: • What must the Distributor get ‘right’? • What must the Large Company get ‘right’? • Increase market share: • What must the Distributor get ‘right’? • What must the Large Company get ‘right’? • Brand development: • What must the Distributor get ‘right’? • What must the Large Company get ‘right’? • Both Stakeholders have expectations of each other

12. How Distributor perceives its position within Linkages business environment Large Company Distributor

13. Interdependence of Sales Benefits, Expectations & Action Required • Benefits • Increased profit • Increased market share • Brand development • Expectations • Distributor Expectations • Production of existing & new quality products that map to customer demand better than competitors • Win-win • Large Co. Expectations • Effective Sales of existing products • Effective Sales of new products • Better Sales of products than the competition • Sell products in manner that reinforces brand & pricing strategy • Win-win • Action Required • Large Company Actions • Ensure existing & new products map to customer demand • Distributor Actions • Provide Large Company with input on customer buying habits • Validate with Large Company that products map to customer segment • Liase with Large Company to ensure pricing compliance • Validate product mix with Large Company on basis of customer segmentation • Provide quality Sales environment • Ensure optimal store location according to demographics and spend profile of area • Optimise Sales process • Provide quality & timely Customer Service Value Creation

14. What this interdependence means to Stakeholders • Sales Benefits, Stakeholder Expectations, and Action Required are interdependent • Benefits give rise to Stakeholder expectations • In order to realise potential benefits from increased Sales, Stakeholders must successfully meet each others expectations • Stakeholder expectations give rise to action required • In order to meet Stakeholder expectations, there are certain actions each Stakeholder must perform

15. Sales benefits are therefore affected by Stakeholder actions • Benefits from Sales are interdependent, requiring both Stakeholders to work together • If either, or both, Stakeholders fail to deliver on the actions expected of them, benefits will fail to be realised • First step in each Stakeholder meeting the expectations of their counterpart is therefore to understand these expectations • Second step is to undertake the Actions Required for both Distributor and Large Company • As this course is intended for Distributors, only actions required for Distributors will be covered

16.  Distributor expectations of Large Company • Expectations • Impact if expectations not met  Action required to meet Large Company expectations

17. Large Company expectations of Distributor • Expectations • Impact if expectations not met

18. Action required to meet mutual Stakeholder expectations • Expectations • Impact if expectations not met • Mutual action required • Win-win …. what is Win-Win?

19. Win-Win outcomes for Large Company and Distributor Large Company Distributor

20. Sales provides Win-Win outcomes for Stakeholders • What is Win Win? • Arrangement from which all parties benefit • Why is it important that no parties ‘lose’ ? • Fail to achieve full potential: Prisoner’s Dilemma. • Why is this important in the linkages context? • Sales benefits interdependently realised • Rely on close co-operation to maximise outcomes / benefits • Linkages a cause of close relationships • The closer the relationship, the more partnership required • ….so how are Sales benefits realised?

21. Suzuki Hungary Nestle China Toyota Thailand Intel Malaysia FIAT Poland Volkswagen Slovakia Example Benefits of Deepening Linkages Relationships

22. Conducting Distributor action required • Actions required to realise Sales benefits for the Distributor break down into 2 areas Sales Service Customer Service ….so what is the difference between Sales and Customer Service?

23. Objectives • Sales Benefits, Expectations & Action Required • Sales vs. Customer Service • Break • Sales: Customer Acquisition & Exercise • Lunch • Sales: Customer Acquisition cont. • Customer Service: Customer Retention • Break • Customer Service Exercise • Operationalising Customer Service • Summary

24. Sales Training • In this section are covered following topics: • The difference between Sales & Customer Service • Why Sales is important in the Linkages Business environment • What activities a Distributor must undertake to attract customers and increase Sales

25. Group Exercise What is the difference between Sales and Customer Service? • Sales • Which of these activities are Sales, and which are Customer Service? • Increase Sales by improving your marketing and Sales processes • Offer a Sales discount • Promote increased usage by existing users • Increase Sales volumes by reducing price • Win competitors’ business • Convert non-users • Find new non-users • Retain users • Launch improved or new products and services • Enter new markets • Launch new products into new markets Sales • Which of these activities are Sales, and which are Customer Service? • Increase Sales by improving your marketing and Sales processes • Offer a Sales discount • Promote increased usage by existing users • Increase Sales volumes by reducing price • Win competitors’ business • Convert non-users • Find new non-users • Retain users • Launch improved or new products and services • Enter new markets • Launch new products into new markets

26. What is the difference between Sales and Customer Service? • Acquire • First purchase as well as all non-purchase interactions that precede • Retain • Repeat purchase of a product / service & additional products / services as well as all non-purchase interactions after first purchase Realise Sales Acquire Retain Customer Service Sales

27. Objectives • Sales Benefits, Expectations & Action Required • Sales vs. Customer Service • Break • Sales: Customer Acquisition & Exercise • Lunch • Sales: Customer Acquisition cont. • Customer Service: Customer Retention • Break • Customer Service Exercise • Operationalising Customer Service • Summary

28. Why is customer acquisition important? • Why is it important to acquire customers? • Increase demand for existing products • Increase demand for new products • Increase market share • Offset customer churn • Strengthening of Brand • All of which lead to • Increased Sales • Increased revenue • Increased profit

29. Why is customer acquisition important in the Linkages environment? • Why is customer acquisition important for Linkages? • Reliance of stakeholders on each other • Important to demonstrate ability to compete and win • Important that fellow stakeholders treat you as a ‘player’ • Increased ability to pass on benefits to other stakeholders: increasing the win-win outcome • Strengthen relationships through success ….so how are customers acquired?

30. How are customers acquired? • Products • Product targeting • Product positioning • Product attributes • Product pricing • Customer retail experience • Store location • Sales staff • Store layout • Store product mix • Store branding • Sales process ….what can a Distributor do to assist this?

31. Which of these do Distributors have control over? • Products • Product targeting • Product positioning • Product attributes • Product pricing • Customer retail experience • Store location • Sales staff • Store layout • Store product mix • Store branding • Sales process ….so how does a Distributor get these ‘right’? Store Location Sales Staff Store Layout Store Product Mix Store Branding Sales Process

32. Store Location • Location the key to effective Sales • Important influences on store location • Demographics • Proximity of traffic generators • Proximity of competition • Convenience • Parking accessibility • Availability of labour • Property market prices • True occupancy costs • Easy of goods receiving • Recognise conflicting priorities • Cannibalisation • Recognise mistakes / cut losses • If possible consult location selection expert

33. Sales Staff Sales • Who does it? • Sales agents • Sales management • Sales support ….so what do they do?

34. Sales Staff Sales • What is done? • Communicate objectives & results • Train staff to sell • Coach staff to be customer focused • Incentivise behaviour • Sponsorship via champions ….so how do you train staff to sell & keep them motivated?

35. Group Exercise Sales Staff: Which one would you rather buy from?

36. Objectives • Sales Benefits, Expectations & Action Required • Sales vs. Customer Service • Break • Sales: Customer Acquisition & Exercise • Lunch • Sales: Customer Acquisition cont. • Customer Service: Customer Retention • Break • Customer Service Exercise • Operationalising Customer Service • Summary

37. Objectives • Sales Benefits, Expectations & Action Required • Sales vs. Customer Service • Break • Sales: Customer Acquisition & Exercise • Lunch • Sales: Customer Acquisition cont. • Customer Service: Customer Retention • Break • Customer Service Exercise • Operationalising Customer Service • Summary

38. Sales Staff: Training • Confidence = Sales ability • Build staff confidence by enhancing their understanding of • Market • Product • Competition • Sales techniques • Provide training • Own products, services, company, and existing clients • Products, services, company, and clients of competitors • Sales techniques • Ongoing Sales training • Keep staff updated / ‘on toes’ • Communicate new products, new client needs, new Sales techniques • Set up regularly scheduled training sessions ….so how do you do this?

39. Sales Staff: Training • WIIFT - What's In It For Them? • How this training is going to increase your reps' Sales & benefit the company • Give specific examples about how to use the new techniques • Make sure everyone participates. What they "do" they "learn“ • Handouts that recap some of the best ideas that were generated from the meeting • Encourage and motivate your Sales staff through enthusiasm and on-target information • Make future sessions build on techniques learned from preceding sessions • Have a reward system for those reps who have used the new techniques and been successful ….so what do you train them in?

40. Sales Staff: Techniques • Conventional Sales: 5 Stages • Attention • Interest • Desire • Conviction • Action (‘Closing’)

41. Sales Staff: Techniques • Basic Sales guidelines • Listen to the emotional side of potential customer • Focus on your customers needs • Help your customer see the bottom line • Find out your customers priorities • Know your customer

42. Sales Techniques • Basic Sales guidelines • Focus on why they should buy - not their objections • Sell the benefits - not the product • Never rush the sale or the customer • Know your products, as well as the market • Follow through with promises • Use explanations - not excuses

43. Store Layout & Design • Effective retail layout & design can greatly improve: • Customer propensity to purchase • Profitability • Actions: • Constantly review store environment • Obtain customer feedback • Obtain customer feedback on how to improve shopping experience • Reducing queues and improving movement around the shop • May unearth something easy to fix that had not occurred • Measure improved retail performance to measure success of store environment change ….so what things should you consider in designing the store layout?

44. Store Layout & Design • Appropriate impression • Night light • Clear view • Less is more • Bright lights • Free flow • Neat and tidy • Colour fresh • Uncluttered • Cash position

45. Store Product Mix: Assess • What is it? • Determination of the most appropriate range of products for sale • Product mix should encourage cross Sales • Do items sold sit naturally together? • Will customer be tempted to purchase more than originally intended • Input ‘Product Target’ from your, or Large Company’s, marketing strategy • Gauge customer preferences • Solicit opinions from customers about additional purchases • Preferences will very according to customer segment ….so how do you define the store product mix?

46. Store Product Mix: Define • Contribution margin per unit of scarce resource (e.g. space available in store) • Implications on customer behaviour: Ask! • Implications on competitor reactions: Look! • Is product mix brand-compliant? • Does it undermine the brand of Large Company product?

47. Store Branding • Stores increasingly viewed as brands • Consider why and how people shop there • Attend to feel of premises: • Create image / atmosphere appealing specifically to target market • Layout and positioning of products • Importance of place in the purchasing decision • Ability to attract customers over competition with no price discount

48. Sales Process Sales Process • Redefined Sales processes to ensure maximum user-friendliness to the customer • Prioritise benefits according to customer requirements • Develop process with emphasis on customer-prioritised benefits • Validate improved process with customers • Continuously improve • Technology to support process • Technology to support Sales process • Understand customer requirements • Feed into Sales process

49. Objectives • Sales Benefits, Expectations & Action Required • Sales vs. Customer Service • Break • Sales: Customer Acquisition & Exercise • Lunch • Sales: Customer Acquisition cont. • Customer Service: Customer Retention • Break • Customer Service Exercise • Operationalising Customer Service • Summary

50. Customer Service Training • In this section, you will cover: • The difference between Sales & Customer Service • Why Customer Service is important in the Linkages Business environment • What activities a Distributor must undertake to retain and satisfy customers