N5 Sales Management 7. Following up on inactive customers
An inactive customer is a customer who has stopped buying. This should be a red flag to the salesperson. It is especially the customer who does not buy from his business but from a competitor who is the salesperson’s greatest concern.
Inactive customers must be followed up frequently and quickly and the reasons for the change of product or supplier determined.
There are various reasons why customers do not buy from a specific supplier any longer. The problem could be: • The product, for example outdated • Packaging might be inconvenient • The result of a misunderstanding, delivery or distribution problems • Competitors’ lower prices • Invoicing errors • Poor salesmanship in terms of approaching or handling of objections by sales staff.
Whatever the problem, it must be identified and eradicated.
Activity 2: Class discussion Can you think of more reasons why customers stop buying a product/service?
The salesperson should ask himself the following questions: • Was the reason for the change caused by shortcoming of himself or was the business to blame?
• Did he keep up with the changing needs of the customer? • Did he keep up with the competition and the benefits and features they offer that the customer might find more beneficial?
• Has he monitored the customer’s orders over the past period, to determine what he bought and in what quantities? Was there perhaps a sudden decrease in quantities of certain products?
• Are the products or services he is selling keeping pace with changing circumstances? Has he made his business aware of new needs and requirements?
Hereafter a plan of action must be compiled including full details for preventing the repetition of problems, to ensure faster action, for creating better communication channels with the customer, leading to frequent and regular follow-ups. The action plan must now be implemented by all those involved and the introduction of evaluation mechanisms to ensure that the customer is kept happy and that repetition of mistakes and problems do not arise again.
8. How is customer loyalty retained?
Customer care and service is of utmost importance if a business wants to retain loyal customers. The salesperson is not the only one responsible for customer satisfaction – every single person in the business, from the receptionist to the CEO, is responsible for customer care and service.
Most successful companies today have a loyalty programme in place for their customers. Many companies also join forces and offer a combined loyalty programme, for example, Pick n Pay Smart Shopper card and Discovery medical aid; Nu Metro and Clicks; Dischem and FNB eBucks.
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