Phase 6—Analyzing the Negotiation, and Managing After-Sales and the Relationship Over Time

Renato made his sale and secured an agreement for the supply of the entire corporate fleet to his customer. He’s delighted, and is celebrating with his bosses and colleagues who have finally appreciated his qualities as a negotiator! In the midst of the celebrations, however, a logistics officer approaches him to tell him that, due to a shipping delay, the delivery date to the customer will have to be put back. Renato loses his temper and categorically refuses to call the customer or to take charge of the situation: “I’m a salesman and it’s not up to me to resolve your shipping problems!” he shouts. Inwardly, however, he is worried about upsetting his customer, but he’s also comforted by the idea that he has already secured the contract. “After all,” he reasons, “it’s not my fault and if he calls me I will state clearly that I can’t be expected to answer for my colleague’s incompetency.” Renato does not yet know that this attitude will endanger his relationship. Moreover, he will lose much of the value that being ethical produces even after the sale. Let us help him change his approach.

It’s over! Whether the order has been signed or the deal fell through, your efforts are now at an end. Yet can we ever say the word end where sales are concerned?

We don’t think so. In fact, if you recall the diagram in Chapter 4 illustrating the different stages of Sales Ethics, you will find that to reach the inner level of the circle of trust (where the customer is proactive and comes back to make further purchases with no input from you or provides excellent referrals among her network of contacts) a further step is required. You still have to invest some of your energy, expertise, and skills to after-sales.

What happens after the sale is important for at least two reasons: First, because it allows us to examine and analyze the recently concluded transaction in detail and to garner valuable information and knowledge, and second, because the relationship with the customer does not end with the purchase but continues far beyond.

Let’s take things in their proper order starting from the first of these activities.

Analyzing the Transaction

An effective way to perform this particular analysis is to prepare an analytical grid of self-assessment. At the end of the chapter, we provide a useful model to do this, but you should adapt it to your own specific sector, the offer system and the type of customers you are targeting.

The analysis of the transaction is necessary to recognize what you did well—not only can you give yourself a pat on the back but this will also permit you to replicate this positive performance, as well as to identify the aspects where there is room for improvement. Be aware that even in a sale that ended with purchase, you can always find moments where you might have slipped up or revealed uncertainties or unresolved ethical dilemmas that indicate you should touch-up your negotiating technique. Similarly, when the sale fell through, you must not only identify the aspects that you handled badly, and which you will definitely want to avoid in the future, but also those that you managed well.

Generally, we fail to complete a deal successfully for two main reasons:

•  Reasons to be found within the negotiation: We could define these as mistakes made or things that could have been done better. These are generally easy to identify when we look back through the different stages of the negotiation (see the exercise at the end of this chapter).

•  Reasons to be found outside the negotiation: These depend on factors over which we have little or no control, as when a customer cannot afford the offer or is not the decision maker.

The former, especially, will provide you with a wealth of knowledge that your analysis will enable you to exploit. The biggest error when considering an internal mistake is to feel so discouraged that you trash the transaction and give up any hope of dealing further with the customer!

As Martin Luther King said, “the ultimate measure of a man is not where he stands in the moment of comfort and convenience, but where he stands at times of challenge and controversy.” We show our true qualities when the going gets tough. This is the time to roll up your shirtsleeves and get down to work!

Once you have realized what went wrong you could even decide to go back to the same customer, though you should judge carefully when and how the approach should best be handled. If, however, the deal was not concluded for external reasons, it is essential to stay in touch with the customer, so you can take up negotiations again if the hurdles are removed. If, despite not making a purchase, the customer was pleased with your relationship (and maybe this has been clearly stated) you may get referrals among other prospects belonging to their social network.

Whatever the outcome of the negotiation, if you try to find a deeper meaning or a positive element in every episode, this attitude will help you to stay motivated and fuel your self-respect, which is the first ethical act you must perform. At the beginning of Sales Ethics, we repeatedly emphasized the importance of nurturing your relationship with the customer, and of maintaining and enhancing your rapport over time. We believe that before you attempt to establish a positive connection and exchange with others, you must first build a good relationship with yourself, based on self-awareness and analysis, that allows you to accept and embrace your true self. The desire to reach a deeper understanding of ourselves, and to work to improve what we discover, is one of the most rewarding journeys of exploration that we can undertake. It  requires commitment, humility, sincerity, and a readiness to lay yourself on the line. The rewards are a greater self-knowledge, improved relationships with others, and a positive attitude toward life. Without respect and awareness of our idea of value and our goals, we will never be able to overcome the identity conflict that hinders our sales transactions and limits our success.

Selling continually puts you to test and challenges you as both a professional and a human being; you will meet many people who are often very different from yourself and you will have to adapt to a variety of situations and changing circumstances. It is therefore essential that you fuel your motivation and optimism for a number of reasons:

•  To transmit confidence, trust, and enthusiasm to your customers;

•  To analyze events with a clear mind and identify solutions and alternatives; and

•  To nurture an inner dialogue that is rich and proactive.

It is extremely challenging, however, to accept that we sometimes need to change something in our professional approach or methodology. Folks are generally afraid of change because a known quantity is reassuring, while innovation may be risky and requires commitment and flexibility. As the famous phrase attributed to Albert Einstein states, “If you do what you always did, you will get what you always got.”

We see Ethical Salespeople as people who are constantly evolving— change is their best ally. This does not mean they will never feel nervous or afraid; we are not talking about super heroes but women and men who are conscious of their undertaking and are ready to face up to their fear—people prepared to study, practice, and measure themselves against others and act responsibly and confidently. If we allow fear to guide us, or fail to take responsibility for the outcome of our actions, our world—not only professionally speaking—will shrink to a smaller and sadder place.

After-Sales—Promoting Customer Loyalty and Stimulating Word of Mouth

The aim of negotiations in Sales Ethics is to reach agreement in a manner that allows us to build shared value and a lasting relationship over time, encouraging customers to contact us again for further purchases, and provide referrals to other potential customers.

As we said at the beginning of this chapter, there are two further stages of the customer experience before and after the sale itself, which we have called phases of exploration and management.

Much of the value of the sale will be capitalized in the management phase that generally coincides with the postsales service. The value at this point includes not only the revenue received, but also the chance to build customer loyalty (regular customers) or to generate a positive reputation through positive word of mouth.

Repurchases and positive word of mouth are examples of behavior belonging to the inner circle of trust which we called broader or rewarded trust.

Once you have entered this ring, the customer is the one who promotes your commercial success.

What will actually convince the customer to adopt proactive behavior that will generate new business for you?

Customers will provide referrals if the transaction has fully satisfied their expectations and they feel appreciated, respected, and well served and their needs have been met. There is a team effort involved in achieving this end, as much will depend on the service of our colleagues who are responsible for delivery, payment, and after-sales assistance. Sales Ethics thus implies a group effort, with the customer at the center of a system of competences and skills that involves different staff. Your role as an ethical salesperson is to prepare, back up, and orchestrate the work of your colleagues.

This does not mean you have to personally make the deliveries or repair products you’ve sold—rather you will use your knowledge of a particular customer and your negotiation experience to help your colleagues offer the best possible service. After the sale, your work with the external customer switches to work with your internal clients (your colleagues) so that you work together to ensure the ultimate satisfaction of a customer that belongs to all of you.

The world we now live in has an abundance of opportunities and a customer may forget you, despite a satisfactory experience at their first purchase. Your job is to refresh your relationship with customers through regular small acts of attention that confirm and consolidate the customer’s trust.

Let’s go over some activities that can stimulate the relationship over time. Some you can carry out yourself, others require the help of a colleague:

•  Advice and tips for installation, use, and maintenance of the product;

•  Customer support: resolving concerns, further explanations for correct use;

•  Verification of satisfaction;

•  Quick resolution of misunderstandings or problems to avoid complaints;

•  Handling complaints in such a way as to encourage loyalty;

•  Verification of new requirements, paving the way for future sales;

•  Updating customer information, regarding shifts or changes in their status;

•  Updating customer information on new products and services;

•  Involving the customer in promotional or marketing activities such as trade shows and campaigns;

•  Remembering significant events in customers’ lives, such as birthdays, anniversaries, or other; and

•  Regular visits or phone calls.

As many marketing directors know, no promotional tool is more powerful than a satisfied customer because potential buyers trust direct feedback from other folks. If they are able to speak with someone who is not involved in an organization (i.e., with no personal reason to speak well of an offer system), a personal recommendation will be especially effective and greatly facilitate your first approach.

Positive word of mouth may need to be actively sought, with the salesperson providing an incentive: “Could you introduce me to … ?” “If you bring a friend along to the next gym class I’ll offer you a free sauna!”

Handling Complaints

Negative word of mouth, on the other hand, requires no incentive: A dissatisfied customer is like a time bomb waiting to explode.

Thanks to the ease with which information circulates on the Internet, through blogs and social networks, negative information spreads widely and swiftly and it has become much more difficult to control this over the last few years.

If you based your sale on giving more in relationship terms than what you physically received from the customer (thus adopting a style of incremental negotiation), you can be sure that a portion of this surplus will transform into enhanced reputation and will reach new markets and customers. Robert Cialdini’s work³³ will help us to clarify this mechanism, as it underlines the impact that the principle of social proof has on building your credibility and on the onset of a customer’s desire to purchase. Customer satisfaction is strongly linked to credibility, that is, the ability to deliver what you promise in the negotiation phase and, like a virtuous circle, credibility will depend on customer satisfaction. If your customers are satisfied by an exchange, they will speak positively about you and strengthen your reputation.

Any salesperson must therefore consider the protection of their image to be paramount; it should be based on integrity and professionalism and this is determined by your ability to instill trust in others.

How must you react if a dissatisfied customer complains?

The distinction between an ethical professional and an amateur is apparent in the way they handle dissatisfied customers and hence complaints. We are called on to demonstrate our real skills and expertise when we make mistakes and errors of evaluation, or when misunderstandings arise.

Customers who openly express their dissatisfaction, and tell you what’s wrong in the relationship, are attracting your attention to themselves and doing so because they actually still have a degree of trust in your work; they are looking for a reason to confirm their expectations and trust you again!

Statistics confirm that on average only 4 percent of dissatisfied customers express their discontent, the remaining 96 percent will never return or will stop using your product-services for reasons you will never know, and you will be powerless to convince them of your worth or correct any errors. Moreover, the power of the word of mouth of a dissatisfied customer is three times higher than that of a satisfied customer because, as we know, bad news travels faster and wider.

You may now be wondering, “So if I acted correctly a hundred times and satisfied my customer’s expectations, can a single mistake put our relationship at stake?” The answer is “yes!”

The good news is that your chances of keeping the customer will depend less on the seriousness of the error, than on your ability to resolve it. Let us see some ways to regain trust.

First, the complaint must be dealt with regardless of the manner in which it reaches you, whether by phone, via e-mail, or in person. Frequently, a heavy workload or haste may lead you to underestimate or miss weak signals of dissatisfaction; this is a mistake to avoid because careful screening and attention to detail will enable you to nip a misunderstanding in the bud.

If the complaint in progress alarm comes on, you need to get ready to listen, and listen actively as we described in Phase 2. Your aim is to fully understand what the customer is trying to tell you. It is vital in this delicate phase to demonstrate that you are focusing your full attention on the customer; you can do this by maintaining eye contact (or verbally signaling understanding if you are on the phone) even when your interlocutor is upset or angry.

Concentrate on gaining a full understanding of the reasons for the complaint and avoid any distractions—if necessary, move to a more private or comfortable space.

Resist the temptation to reply until the customer has finished explaining their reasons, then ask more probing questions. Pay close attention to nonverbal language and tone of voice.

Once you have figured out precisely what the problem is, you must commit to finding a solution, avoid attempts at self-justification, or harking back to better times in your relationship! Focus on the here and now, and what you intend to do from now on, and determine who will do what and when to resolve the complaint. In some cases, it may be useful and reassuring to share with your customer the plan of attack that you and your colleagues will put into operation.

Take responsibility for implementing the solution by involving as many other colleagues as necessary, but taking your own share of responsibility in managing it. The retort, “This problem has nothing to do with me, I’ll speak to my colleague” is one of the most annoying answers you can give if a customer comes to you with a problem. Even if you will not be directly involved in resolving the issue, tell the client “I will get in touch with our after-sales service immediately. As soon as our conversation is over, I will get in touch with my colleagues to find out the earliest date for resolving this problem. I’ll call you back later today and feel free to contact me for any further information.” Remember, the fact that you have committed to helping and resolving the issue will have a considerable impact on the customer, while a disinterested approach, or even worse, a dismissive or insolent attitude, would further worsen relationships.

Once the complaint has been resolved let the person know clearly and directly and make sure they are satisfied with the solution. If someone else is managing the problem, find a way to give your feedback to the customer. You are their point of contact and the custodian of their trust.

Satisfied customers are loyal customers—they are the ones that allow our businesses to flourish and us salespeople to prosper by demonstrating that ethics create concrete results. Yet, very often, we focus on the dispute and are caught up in trying to see who’s right or wrong and where the blame lies, losing sight of the real goal that is the creation of value.

Approaching Sales with the Right Frame of Mind

We started our journey through the different stages of a sale by underlining how the collective perception often associates the verb sell and the noun seller with feelings of suspicion and fear that provoke a cautious response and a feeling of skepticism when folks approach a purchase.

As we stated earlier, one of the goals of this book is to rehabilitate this noble profession and stress that there is an exchange of value between both parties involved in a sale.

We also intend to help resolve the identity conflict that aspiring sellers may develop, and which discourages many young people from joining a profession that is increasingly in demand and can offer excellent job opportunities.

Over the years, our consulting business has helped several cooperatives and NGOs, which are increasingly under pressure to contend with market logics, to tackle the sale of their products and services with renewed enthusiasm, by restoring dignity to an action that they considered rather distasteful as it traditionally aimed solely at maximizing profit. Many of these organizations can now appreciate the value of their offer as they realize that thanks to exchange on the market, they attract resources that in turn enable them to enhance their facilities and help others, creating shared prosperity.

By resolving our identity conflict, we can allow ourselves to be true to our emotions and to act accordingly, in line with our values—this in turn increases our chances of success. Our behavior in the market is only effective if it is genuine and sincere, and backed up by appropriate skills and expertise.

Bear in mind also that your customers, like you, have senses and a mind that consciously or unconsciously will tune in to the nonverbal signals you are sending. They will instinctively pick up on any inconsistency between the words you use, the way in which they are spoken, and your body language.

Customers and sellers are essentially women and men whose ways of acting and thinking are driven by emotions as well as rationality. Emotions are vital, but you must learn how to manage them to maximize your talents.

Research has shown that success is determined more by your EQ (emotional intelligence quotient) than your IQ (intelligence quotient). If you are aware of your own emotions and direct them to create empathy with others, you can establish successful relationships.

Emotions are contagious and we transmit them directly to our customers and hence reveal much about ourselves, including who we are, why we are interacting with them, and to what extent we believe in our offer and our profession. That is why fear is the greatest enemy of any ethical salesperson and our most dangerous counselor! The fear of being judged, of not being accepted or listened to, of being uncompetitive and ultimately of failing to sell can be perceived by our customers in two ways:

•  Indecision and insecurity—the sale becomes an uphill struggle

•  Aggression and arrogance—we think we are perfect, blocking any possibility of evolution, and distancing ourselves from our customer.

Once you have solved your identity conflict, your emotions will find their natural place as an ethical salesperson: nervousness before meeting an important customer, the joy of closing a deal you’ve been working on for a long time, the adrenalin rush as you tackle a challenging negotiation. These emotions will provide impetus and confer authenticity and sincerity to your contact with the person with whom you are interacting.

We want to conclude by saying that there is no perfect time to launch yourself whole-heartedly into the wonderful profession of sales. There is no point in hoping you have learnt everything, read all the books and studied every type of customer. There will always be rivals to compete with, and surprises around the corner—there is no guarantee of success.

True Ethical Salespeople will have faced countless negotiations, met with hundreds of customers, and had the most unexpected experiences; they will have fallen and picked themselves up, and discovered in themselves resources of kindness and humility, curiosity and openness, courage and confidence.

We get results if we commit to achieving them, if we are prepared to travel unchartered waters with a positive outlook and a responsible attitude that reflects our values and our passion for the role we have chosen.

When your mind and your heart are committed to the same goal, you will find all the solutions you need to sell and to succeed.