A recent study
from the Gallup Organization has some alarming implications for
salespeople: Researchers found that customer satisfaction does
nothing to boost repeat sales.
The study
found that extremely satisfied customers are just as likely to
take their business elsewhere as less-satisfied customers. The
researchers concluded that customer satisfaction “has no
real value. None at all.”
And what about all the money and energy that companies spend to
measure and improve customer satisfaction?
Wasted, they
say.
Strong words.
But there’s other evidence as well. Consider, for example,
the latest auto ratings from the American Customer Satisfaction
Index. Customers gave Lincoln-Mercury the highest customer-satisfaction
ratings in the industry – ahead of Honda, BMW and Toyota.
In the past
two years, Lincoln-Mercury sales have fallen by 26%.
So
What Drives Repeat Sales?
The researchers
did find something linked to repeat sales: customer engagement.
In other
words, a customer’s emotional connection with you, your
product or service, or your company. When customers had this connection,
loyalty soared.
Here’s
the difference between satisfaction and engagement. If anyone
asked, you’d probably say you’re highly satisfied
with your local ATM. Yet you probably don’t sing its praises
to your friends. Or look forward to using it. And if you found
another one half a block closer to your office, you wouldn’t
think twice about switching to it.
Compare that
with a human teller who smiles and greets you by name, asks about
your kids and chats about the weather while your checks are being
processed. Same level of service. Same degree of satisfaction.
World of difference.
Rules
of Engagement
Engaged customers will walk across hot rocks to do business with
you. They not only take your calls; they call you. They fight
for you even when the bean counters are pressuring them to go
with the cheapo option. They even forgive you when you make a
mistake.
This passion
isn’t accidental. You can cultivate it. Not by showering
customers with free tickets and fancy lunches. Nor even by delivering
spectacular service or exceeding expectations (although that certainly
can’t hurt.)
The best way
to engage with customers is by understanding the emotions that
drive them.
Even the most
“rational” sale has an emotional component lurking
in it. People simply will not spend money – their own or
their company’s – unless they’re motivated by
their fears, desires, hopes or dreams. Understand those, and you
have a very good chance of winning a customer for life.
Some years
ago, I had a client – the CEO of a firm in the aerospace
business. “Our salespeople need to improve their skills,”
he said. A great customer, right? He’d told me what he needed.
All I had to do was write a proposal showing how I could deliver.
But I didn’t
fully understand the emotions behind the sale.
So I asked:
“Why do they need to improve their skills?”
He thought
for a moment, and then he said, “Let me tell you about our
business. The contracts are big, but they don’t come along
that often. If we lose a sale, it can really hurt us.”
“Hurt
you how?” I asked.
“It
could put us out of business,” he said.
Just like
that, I got it. This client wasn’t interested in helping
reps get a little better at their jobs. He wasn’t interested
in incremental improvements in sales. His company was on the line,
and he simply couldn’t afford to be outsold.
Knowing what
was at stake, I proposed an intensive and ongoing program for
the sales department. It was a far larger assignment than what
I’d originally considered – and exactly what the client
needed.
The
Best Question in Sales
The best question
is sales is “why?”
Why does the
customer want/need what we’re selling?
That’s
the best way to get at the emotions that underlie the sale, and
that drive customer engagement.
Yet conversations
with customers and prospects tend be all about “what.”
What are you looking for? What delivery date would you like? What
color, what model, what price? And oh by the way, what did you
do last weekend?
So why is
that?
Well, we may
not want to hear why. We may not have a response in our well-rehearsed
sales script. We may think it’s none of our business. We
may want to keep the customer in a positive frame of mind, and
so avoid the tough questions.
And sometimes
we simply don’t know how to ask. Ordinary sales questions
are easy to ask: “What are your goals? When you do you need
delivery? Do you prefer the red or the blue?”
Engaging questions
require a different approach.
Probing for
emotion can be a scary place to go with the customer. It stretches
the customer and the salesperson. If you want customers to reveal
their vulnerabilities, you have to be willing to share, too. Much
like a doctor or lawyer, you have to create an atmosphere of trust
before you pose a tough question.
Challenging?
Yes. But if we don’t understand what’s motivating
the customer, how can we truly be of service to them? And why
would we expect them to come back?
About
The Author:
Sales
Leadership Expert Paul Cherry will shake up your sales team
and motivate your leaders! By teaching executives to ask the right
questions, Paul has helped over 1,200 companies turn their sales
team strengths into profit and performance. Now, you can achieve
success with his FREE Sales Motivational Discovery Assessment,
guaranteed to help you discover exactly where mediocrity exists
in your organization. Take the assessment now: http://www.pbresults.com
You can reach Paul at (302) 478-4443 or cherry@pbresults.com.
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