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Salesmanship SALES AND SERVICE ExcellenceTHE MAGAZINE OF TEAM LEADERSHIP NOVEMBER 2011 Nanovation Service Significance Bond with Jeanne Bliss Consultant Customers Achieve Beloved Status “Sales and Service Excellence is a phenomenal resource for sales professionals who want to grow and achieve more in their careers.” —TOM HOPKINS, AMERICA’S #1 SALES TRAINER w w w . L e a d e r E x c e l . c o m Sales and Service ExcellenceVolume 11 Number 11 The Magazine of Team Leadership November 2011 SERVICE/BONDING Bond with Customers Empower growth and prosperity. Beloved leaders weave their humani- Why? Because Zane’s Cycles decides to by Jeanne Bliss ty into every decision. They make five believe in the integrity of their customers. important decisions to create an indeli- Zane’s has valued every customer who EADERS HAVE AN INCREDI- ble bond with customers and employees: walks in their door with a lifetime L ble opportunity to 1. Decide to believe: We trust our cus- value of $12,500, and they don’t want empower growth and pros- tomers. We trust those who serve them. to risk that long-term relationship by perity within their company and with Beloved companies make the decision questioning a customers’ integrity. their customer base. Beloved companies to believe in their customers and their Zane’s trusts that the customers will do with beloved leaders create an indelible employees. They suspend cynicism in the right thing, and true to their belief, bond with customers. They also create their relationships, and so they are free of the 4,000 bikes they sell each year, it within the company and every part from the extra rules, polices and layers they lose less than five each year from of their management style. We’re all of bureaucracy that create barriers be- a stolen bike during a test drive. heartbroken to see Steve Jobs pass away Equally as important is a company’s because he is beloved as a leader by his belief in its employees—a belief that employees and customers. He’s become lets employees know they are trusted a part of their lives. Apple’s devoted to make the right decisions, without customers grow their business for being scrutinized or strictly monitored. them; telling everyone they know on • Wegmans Food Markets, a grocery Twitter, Facebook, chat rooms and hun- store chain with about $4.5 billion in dreds of websites every day that the annual revenue, decided to ditch the company is worthy of their business. employee rule book and replace it with What is behind achieving beloved one single rule: no customer is allowed to status? These companies earn the right leave unhappy. By getting rid of the rule to grow and prosper because of the tween them and their customers. The book, they enabled each of their 37,000 anguish, thought and purpose that they belief demonstrates a company’s trust. employees to do whatever was needed, put into decision making. The actions • Zane’s Cycles is a Connecticut-based regardless of the situation, to ensure that come from their decisions set them bicycle shop with $13 million in sales each of their customers was satisfied. apart. Beloved companies weave their each year and a relationship rooted in This belief in their employees led to humanity into every decision, connect- customer trust. Zane’s allows current decreased employee turnover (only 7 ing who they are as a people with the deci- and prospective customers to test drive percent, while industry average is 19 sions they make in how they run their their bikes—including any of their percent), an estimated operating margin business. As a result, they earn not just $6,000 bikes—without asking for any of 7.5 percent, double that of its com- loyal buyers, but passionate, vocal fans. form of collateral or identification. petitors, and 50 percent higher sales per CONTENTS CHIP R. BELL AND JOHN R. PATTERSON MARK FAUST GEORGE BROWN Service Significance . .3 Lead a Recovery . .8 Co-Destiny Actions . .12 K. FREIBERG, J. FREIBERG, AND D. DUNSTON MICHAEL J. NICK RON SNYDER Nanovation . .4 Complex Sale . .8 Sales Planning . .13 BRYAN FLANAGAN CRAIG HANDLEY JOHN TASSONE Effective Prospecting . .4 Cultivate Happiness . .9 Go For It! . .14 JOHN GOLDEN CAROL KINSEY GOMAN JOANNE BLACK Sales and Marketing . .5 Key Negotiations . .10 You Never Know . .14 KATHERINE LEMONS RICHARD SHAPIRO BOB BURG AND JOHN DAVID MANN Sales Etiquette . .6 Repeat Business . .10 Yield and Win . .15 JOHN BREDIN HARVEY MACKAY NATHAN JAMAIL Ethical Sales . .6 Salesmanship . .11 Successful Selling . .16 ANDY PAUL SHELLY SUN DOUG AND POLLY WHITE Zero-Time Selling . .7 Expand Your Business . .12 Let Go to Grow . .16 square foot than industry average. Beloved Their turnover is only 15 percent (50 percent companies know that most people strive to is average in retail). Creating a culture where Volume 11 Issue 11 do the right thing, and they decide to believe people find joy in working with each other that this is so for customers and employees. has earned them nine years on Fortune’s 100 Sales & Service Excellence is published 2. Decide with clarity of purpose: We are Best Companies to Work For list. Customers monthly by Executive Excellence Publishing, LLC (dba Leadership Excellence), clear about the purpose we serve in our cus- and employees gravitate to companies who 1806 North 1120 West, Provo, UT 84604. tomers’ lives. Beloved companies take the decide to be real, and nurture the personality Editorial Purpose: time to be clear about their unique promise and spirit of customers and employees. Our mission is to promote personal and for their customer’s lives. Beloved compa- 4. Decide to be there: We are in the scrim- professional development based on constructive nies realize that clarity of purpose guides choic- mage every day to build our operation from our values, sound ethics, and timeless principles. es and unites the organization. It elevates customers’ perspective. Beloved companies Basic Annual Rate: people’s work from merely executing tasks devote more resources and work to be there $59 (12 issues) to delivering experiences that customers will for their customers. They’re in it every day to $119 two years (24 issues). want to repeat and share with others. earn the right to a continued relationship Article Reprints: For reprints of 100 or more, please Beloved leaders know that their choices with their customers, and the first decision contact the editorial department at and clarity of purpose also drive employees they make is to be there when the customer 1-801-375-4060 or email to engender this purpose across the board. needs them, on the customer’s terms. [email protected]. Permission PDF: US $100 • Tony Hsieh, is another beloved leader. • Umpqua Bank decided to be there for cus- Business for Zappos.com, an Internet cloth- tomers by creating the position of Universal Submissions and Correspondence: Please send any correspondence, articles, ing and shoe retailer known for its superior Associate; training every employee in every letters to the editor, and requests to reprint, customer service and quirky company cul- banking task—aware of the frustration cus- republish, or excerpt articles to Editorial Department, Sales & Service Excellence, ture, exploded in 2008, reaching over $1 bil- tomers felt from waiting in long lines only to 1806 North 1120 West, Provo, UT 84604 or lion in gross merchandise sales. find that the banker is unable email [email protected]. In the face of rapid growth and to help them. Further, the bank Customer Service/Circulation: increased demand, Zappos made its mission to provide For customer service, or information on decided that their customer ser- customizable banking, allowing products and services call 1-877-250-1983 vice culture was essential and local managers to customize or email: [email protected]. must be preserved. So, he their offering based on their Internet Address: www.LeaderExcel.com decided that only the most customers’ interests. This has Marketing Offices: passionate employees should allowed Umpqua Bank to be Leadership Excellence 1806 N. 1120 W. stick around, offering $2,000 there for customers and has led Provo, UT 84604 for new-hires to leave the com- to exponential growth. 1-877-250-1983 pany if they didn’t feel like 5. Decide to say sorry: We are 1-801-375-4060 they could uphold and live by humble and accountable. We’ll Sales & Service Excellence: the core values of their busi- make it right. Grace and wis- Ken Shelton, CEO, Editor-in-Chief ness. Fewer than 1 percent of dom guide beloved companies to Sean Beck, Circulation Manager new-hires take Zappos up on their offer, accept accountability when things go awry. Contributing Editors: Debbie Allen, Curtis meaning that those who stay are committed • Toro Company, a lawn mower manufac- Bingham, Tom Hopkins, Dave Kahle, Richard and passionate employees, ready to fully turer, says we’re sorry to customers who are Ilsley. embrace Zappos culture. Businesses prosper injured using their products, regardless of who when they decide with clarity of purpose and is at fault. After ensuring that the customer is Copyright © 2011 Executive Excellence Publishing. No part of this publication may be spread that clarity across the organization. okay and taken care of, Toro shifts the con- reproduced or transmitted in any form without 3. Decide to be real: We are genuine, pas- versation, from wronged customer to what hap- written permission from the publisher. sionate and take the best version of ourselves to pened. In a litigious industry, 95 percent of Quotations must be credited. work. Beloved companies and their leaders Toro’s cases are settled on the day of mediation break down barriers between customer and or soon thereafter, because they are proactive company, creating a relationship between and say we’re sorry.
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