This is the second part of our Two Part Series. The strategies below are designed to build on the first relationship building strategies for building, maintaining and fostering customer loyalty. These strategies are not exclusive to a sales environment. If you lead a team that is under temporary stress, a department that is experiencing flux due to a merger or acquisition, or any organizational challenge that is a breeding ground for uncertaintly and the potential for high performers to run for the door (and take their resume to the competition), this article is for you.
5. Honesty is Never a Mistake: Suppose a pilot flying in a storm realizes an engine has been struck by lightning and an emergency landing is imminent. In a small plane, the passengers already know that something has gone badly wrong. The pilot has the choice whether to downplay the coming risk or communicate the truth in a way that shows leadership ability. Here's what I mean by that--a pilot who isn't afraid to take control of the situation enables his passengers to prepare for a dangerous landing. Emergency procedures can be communicated and the safety and well-being of the passengers can be planned for, as much as possible. A pilot who possesses great technical skills but has lousy leadership technique may not choose to talk to the passengers at all about the coming rough landing, leaving them to wonder whether they're going to survive.
As a successful sales account executive, you already know that you must the one who communicates bad news, especially to your best customers. Avoiding that task, or actually denying that bad news is in the air, is a career killer. Your customers are intelligent business people who know which way the wind is blowing. Honestly approaching the subject, without casting the blame on 'someone higher up', empowers your customers to speak frankly to you about the impact that news has on their profitability. Dodging difficult subjects usually leads to relational disaster. Nugget: Tell the truth, then start looking for solutions.
6. Keep Moving Forward: While we've been stressing the value of empathy in keeping the communication with your customers flowing, it bears mentioning that 'over-empathizing' isn't particularly helpful in resolving the problems caused by your bad news. Getting your hands dirty helping your customers look for solutions isn't the same thing as rolling in the mud with them. You've told them the truth, you've expressed your desire to find ways to keep both supplier and customer operations afloat, now keep going. Taking a step backward by continuing to commiserate about the situation delays a successful outcome. Nugget: Once bad news is delivered, keep your comments positive and focused on future success.
7. Keep Bad News in Context: It may seem to your customers that they're being singled out by a vendor when an account exec delivers bad news. Coach them past a victim mentality by presenting the bigger picture of what precipitated the bad news in the first place. This is where your own social awareness comes in handy. Most potentially devastating news can be placed in the context of larger problems in society. I'm certainly not advocating passing the buck. We've already discussed the importance of owning accountability for the impact this news may have on your customers. It is, however, good salesmanship to present the whole picture to the customer.
Here's an example: Your tire manufacturing company is negatively impacted by the rising cost of carbon black, a key raw material for your product. That rising cost is directly attributable to the overall increase in petroleum products in the U.S.
In the very first conversation about the price increase with a customer, you can help them put the bad news into a larger perspective by giving them all the information they need. Here's a poorly-planned delivery of bad news with a tight focus on your own company, "Man, the guys upstairs are killing me! They told me to let you know our entire line is going up 20% at the end of the month. There's nothing I can do about it, sorry." Do you see how the customer might feel that they're being singled out for a price increase by your company?
Instead, try to broaden the picture so that the customer keeps the news you're delivering in the perspective of larger issues. "I wanted to let you know as soon as possible we've had word from our carbon black supplier that they're raising our cost quite a bit at the end of this month. What that will mean for you is that our tire prices will have to be adjusted up 20% to cover the increase. All of our customers will be seeing the same price adjustment. They tell me in the front office that as soon as the oil prices stabilize, we'll discount the best selling lines to give you guys some breathing room. Now, let's talk about ways we can lessen the blow to your customers." The only caution I have for you here is that this is no time to promise 'blue sky'. If there's a price reduction possible in the future, that should be communicated, but be sure of your facts before you speak.
By communicating the price increase in the context of world oil markets and future discount possibilities, you've moved the focus from 'we're going to charge you guys a lot more' to 'we're in this together'. Nugget: Draw the entire picture for the customer, without giving in to the temptation to place blame.
8. Creative Empowerment: One more way you can help your clients weather negative news is by giving them permission to be creative. This is one of the most empowering relationship building skills you can develop. Here's how the creative process comes into play in a tense situation with a customer--you take the time to listen to their response to the news you've delivered, then immediately begin to steer them toward possible ways to mitigate the damage.
As possibilities begin to emerge, perhaps in order timing, inventory shifting or the way in which increases are presented to their customers, your role is to encourage their creative solutions. Once again, look at the situation from the customer's perspective. They can either tell their manager that the vendor is raising prices but the account executive has found a way to soften the blow, or they can show their manager the solution they've created to lessen the impact.
By putting aside your own needs in any relationship, you elevate the level of trust from the other person. The sacrifice you make today is going to be rewarded by the customer's increased loyalty. Nugget: Make suggestions, encourage their creative thinking, and allow them to be the hero.
5. Honesty is Never a Mistake: Suppose a pilot flying in a storm realizes an engine has been struck by lightning and an emergency landing is imminent. In a small plane, the passengers already know that something has gone badly wrong. The pilot has the choice whether to downplay the coming risk or communicate the truth in a way that shows leadership ability. Here's what I mean by that--a pilot who isn't afraid to take control of the situation enables his passengers to prepare for a dangerous landing. Emergency procedures can be communicated and the safety and well-being of the passengers can be planned for, as much as possible. A pilot who possesses great technical skills but has lousy leadership technique may not choose to talk to the passengers at all about the coming rough landing, leaving them to wonder whether they're going to survive.
As a successful sales account executive, you already know that you must the one who communicates bad news, especially to your best customers. Avoiding that task, or actually denying that bad news is in the air, is a career killer. Your customers are intelligent business people who know which way the wind is blowing. Honestly approaching the subject, without casting the blame on 'someone higher up', empowers your customers to speak frankly to you about the impact that news has on their profitability. Dodging difficult subjects usually leads to relational disaster. Nugget: Tell the truth, then start looking for solutions.
6. Keep Moving Forward: While we've been stressing the value of empathy in keeping the communication with your customers flowing, it bears mentioning that 'over-empathizing' isn't particularly helpful in resolving the problems caused by your bad news. Getting your hands dirty helping your customers look for solutions isn't the same thing as rolling in the mud with them. You've told them the truth, you've expressed your desire to find ways to keep both supplier and customer operations afloat, now keep going. Taking a step backward by continuing to commiserate about the situation delays a successful outcome. Nugget: Once bad news is delivered, keep your comments positive and focused on future success.
7. Keep Bad News in Context: It may seem to your customers that they're being singled out by a vendor when an account exec delivers bad news. Coach them past a victim mentality by presenting the bigger picture of what precipitated the bad news in the first place. This is where your own social awareness comes in handy. Most potentially devastating news can be placed in the context of larger problems in society. I'm certainly not advocating passing the buck. We've already discussed the importance of owning accountability for the impact this news may have on your customers. It is, however, good salesmanship to present the whole picture to the customer.
Here's an example: Your tire manufacturing company is negatively impacted by the rising cost of carbon black, a key raw material for your product. That rising cost is directly attributable to the overall increase in petroleum products in the U.S.
In the very first conversation about the price increase with a customer, you can help them put the bad news into a larger perspective by giving them all the information they need. Here's a poorly-planned delivery of bad news with a tight focus on your own company, "Man, the guys upstairs are killing me! They told me to let you know our entire line is going up 20% at the end of the month. There's nothing I can do about it, sorry." Do you see how the customer might feel that they're being singled out for a price increase by your company?
Instead, try to broaden the picture so that the customer keeps the news you're delivering in the perspective of larger issues. "I wanted to let you know as soon as possible we've had word from our carbon black supplier that they're raising our cost quite a bit at the end of this month. What that will mean for you is that our tire prices will have to be adjusted up 20% to cover the increase. All of our customers will be seeing the same price adjustment. They tell me in the front office that as soon as the oil prices stabilize, we'll discount the best selling lines to give you guys some breathing room. Now, let's talk about ways we can lessen the blow to your customers." The only caution I have for you here is that this is no time to promise 'blue sky'. If there's a price reduction possible in the future, that should be communicated, but be sure of your facts before you speak.
By communicating the price increase in the context of world oil markets and future discount possibilities, you've moved the focus from 'we're going to charge you guys a lot more' to 'we're in this together'. Nugget: Draw the entire picture for the customer, without giving in to the temptation to place blame.
8. Creative Empowerment: One more way you can help your clients weather negative news is by giving them permission to be creative. This is one of the most empowering relationship building skills you can develop. Here's how the creative process comes into play in a tense situation with a customer--you take the time to listen to their response to the news you've delivered, then immediately begin to steer them toward possible ways to mitigate the damage.
As possibilities begin to emerge, perhaps in order timing, inventory shifting or the way in which increases are presented to their customers, your role is to encourage their creative solutions. Once again, look at the situation from the customer's perspective. They can either tell their manager that the vendor is raising prices but the account executive has found a way to soften the blow, or they can show their manager the solution they've created to lessen the impact.
By putting aside your own needs in any relationship, you elevate the level of trust from the other person. The sacrifice you make today is going to be rewarded by the customer's increased loyalty. Nugget: Make suggestions, encourage their creative thinking, and allow them to be the hero.
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