Building Partnering Relationships

1
Building Partnering Relationships

• What different types of relationships exist
  between buyers and sellers?
• When is each type of relationship appropriate?
• What are the characteristics of successful
  partnering relationships?
• What sales behaviors are consistent with
  long-term relationships?

2
Effects of Customer Retention

• Retaining 2 to 5 more customers has the same
  effect on profits as does cutting costs 10.
• 65 of the average companys sales comes from
  repeat customers.

3
Types of Relationships betweenBuyers and Sellers
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What are the foundations of successful
relationships?
Mutual Trust
Partnering Relationship
Open Communication
Common Goals
Commitment to mutual gain
Organizational support
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Buyers define trust using terms such as

• Openness
• Dependability
• Candor
• Honesty
• Confidence

• Security
• Reliability
• Fairness
• Predictability

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What is trust?

• Trust answers the questions

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Major Components of Trust
Honesty
Trust
Dependability
Customer Orientation
Competence
Likeability
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Developing TrustHonesty

• Honesty
• Honesty is both truthfulness and sincerity.

9
Developing TrustDependability

• Dependability
• The buyers perception that the salesperson, and
  the product and company he or she represents,
  will live up to the promises made.
• Consider using

10
Developing TrustCompetence

• Competence
• Salespeople demonstrate competence when they can
  show that they know what they are talking about.
• Requires knowledge of

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Developing TrustCustomer Orientation

• Customer Orientation
• The degree to which the salesperson puts the
  customers needs first.

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Developing TrustLikeability

• Likeability
• Likeability refers to behaving in a friendly
  manner and finding a common ground between buyer
  and seller.

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What are the foundations of successful
relationships?
Mutual Trust
Partnering Relationship
Open Communication
Common Goals
Commitment to mutual gain
Organizational support
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Open Communication

• The process by which knowledge is transmitted,
  expectancies are shared, programs are
  coordinated, power is exercised, etc.
• Multiple conceptualizations of communication

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Communication Quality

• A high quality communication climate refers to
  the flow of information that is
• Useful

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Influence Strategies as Communication

• Def. Communication designed to control or modify
  a persons behavior, typically through the use of
  power
• Sales managers often use influence attempts to
  force certain salesperson activities
• May be Coercive or Noncoercive

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Influence Strategies (contd)

• Noncoercive strategies tend to have a positive
  impact on commitment, trust, and satisfaction
  with a relationship.
• Noncoercive communications include

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Communication Modes

• Def. Communication modes refer to the methods
  used to transmit information
• Less formal, more rich communication modes
  typically have positive impact on understanding
  of and commitment to strategic initiatives
• Rich modes

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What are the foundations of successful
relationships?
Mutual Trust
Partnering Relationship
Open Communication
Common Goals
Commitment to mutual gain
Organizational support
13-19
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Compatible Goals

• The extent to which salespeople feel that their
  individual and company goals are compatible with
  those of their customers
• Difficult because
• Must approach relationship from a
  problem-solving, solution-selling standpoint

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What are the foundations of successful
relationships?
Mutual Trust
Partnering Relationship
Open Communication
Common Goals
Commitment to mutual gain
Organizational support
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Credible Commitments

• Visible, often tangible, commitments to the
  long-term good of the relationship
• Examples
• Providing infrastructure

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What are the foundations of successful
relationships?
Mutual Trust
Partnering Relationship
Open Communication
Common Goals
Commitment to mutual gain
Organizational support
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Organizational Support

• Structure and Culture
• The organizational structure and management
  provide the necessary support for the salespeople
  and buyers in a partnering relationship.
• Training
• Special training is required to sell effectively
  in a relationship-building environment.
• Rewards
• They are rewarded based on behaviors as opposed
  to outcomes