Social Enterprise Learning Toolkit (Customer Relations Module)
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This presentation features the Customer Relations Module of the Social Enterprise Learning Toolkit developed by Enterprising Non-Profits. The Toolkit offers a number of different learning modules and can be found on the enp website at www.enterprisingnonprofits.ca
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Social Enterprise Learning Toolkit (Customer Relations Module)
- 1. Customer Relations Module #6 Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 1
- 2. Sales and customers are the core of your business venture. Blended value drives your success! Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 2
- 3. You have to: Reach the customer! Serve the customer need! Maintain the customers! “Spend it to make it!” Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 3
- 4. Who is your customer? What do they want? Why do they want it? Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 4
- 5. Understand why they have chosen to do business with you in the first place You have to look at the whole customer experience to get them to continue as your customer ◦ Deliver Value … Every Day ◦ Act Promptly to fix problems ◦ Review Service from the customer perspective ◦ Never forget your Competition Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 5
- 6. “Customer is Always Right” “It takes 10 positive responses to outweigh 1 negative response” “Service with a smile” (even over the phone!) Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 6
- 7. Target Customer ◦ Market Segmentation Analysis ◦ Who is going to buy? Who is buying? Selling Strategy ◦ Advertising and Resources Competition ◦ Who else is out there? Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 7
- 8. Direct or Retail Selling Wholesale Sales or Distribution Online Sales A Mix Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 8
- 9. Fundraising Sales Grants and Clients You have to go to the come to you customer Social Need Competition Potential Funders Market Demand Customers Amount of Ask Pricing Amount Received Sales Revenue Reporting Communications Clients Served Overhead Expenses Overhead Allocation Income / Profits Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 9
- 10. From a customer’s perspective, review and evaluate: ◦ Quality of Product ◦ Competitive Pricing ◦ Service & Experience Level / Convenience ◦ Social Value ◦ Other tangibles ◦ Other intangibles “We sell ________” Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 10
- 11. Social enterprises are businesses operated by non-profits with the dual purpose of generating income by selling a product or service in the marketplace and creating a social, environmental or cultural value. Enterprising Non-Profits (enp) is a unique, collaborative program that promotes and supports social enterprise development and growth as a means to build strong non-profits and healthier communities. The program is supported by the following funding organizations: For more information on enp and different modules in the Social Enterprise Learning Toolkit please check out www.enterprisingnonprofits.ca 11
Notes de l'éditeur
- From: Introduction to Social Enterprise - resource package Social enterprises are businesses with two goals: to earn revenue through the sales of goods or services and to achieve social, cultural or environmental outcomes. Many social ventures mistakenly assume that they can get away with a lower service level because their customers will understand that it's for a worthy cause. (from http://www.mpt.org/mpt?q=node/10164 ) Social Enterprise uses business as the primary means of achieving a social mission or purpose. This is distinct from many non-profits whose market activity is not the primary means of achieving their mission. Selling into the marketplace is always a central feature of Social Enterprise
- The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.
- To retain customers over the long run, companies have to fully understand why they have chosen to do business with you in the first place—that is, your value-proposition vs. those of competitors. You have to look at the whole customer experience Delivering Value…Every Day Act Promptly to fix problems Review Service at the highest level
- From: http://www.socialenterprisesolutions.co.uk/toolkit/33_sales_plan.pdf A market segment is a group of customers, users or supporters who share similar requirements. Each segment will be be different enough from others to need specific treatment and communication For each market segment or group what ’sales pitch’ or promotional techniques are being used? When will they occur? What are the projected kind and levels of demand? What are the projected sales? Resource Development and Allocation Based on the internal components of the organization, decisions will need to be made about the resources to be committed to the sales plan, the personnel, physical resources, financial resources etc required and how they are to be acquired. For instance, will people need retraining? Will you need a bank overdraft? Will there need to be an internal reorganisation? Will you need to bring in consultants? Or hire extra production, sales or administrative staff? Advertising Strategy This consists of decisions about where you will advertise and when, using what methods and to achieve what ends. For instance, radio advertising which reaches many people can help increase brand-name recognition but not generate many actual sales. An advert and coupon in the paper might not generate sales without that recognition. Inducements at the point of sale, for instance discounts, money-back guarantees, price cuts etc will not generate sales unless staff are offering them. Additionally it is important to consider the “return” of each advertising method actual cost Vs sales income and resources allocated Vs marketing return. Marginal Cost Analysis This consists simply of a calculation of what extra sales will be generated at what cost in terms of the advertising budget and wage costs. How much extra income is generated and does this generate a gross profit or ’margin’. It is not necessary for a marketing drive to generate a profit since it may have other purposes: to increase market recognition prior to introducing a new product for instance or to clear a warehouse of stockpiles etc. But the ’marginal cost’ or ’marginal benefit’ of the marketing drive (i.e. what is lost or gained compared to the situation now) must be calculated.
- http://www.startups.co.uk/different-ways-of-selling.html Direct selling This is when the business sells its products or services directly to the customer. Through this method you can build a good relationship with your clients, use your selling skills to communicate the benefits of your offering, and access valuable information through communicating with the customer, for example regarding their needs, their opinion of the product, experiences with the competition and so on. Selling wholesale If you ’re not selling directly to the customer, you could be selling to a wholesaler or reseller, who then sells the products on to the consumers. If you’re selling to businesses for example, some might prefer to buy only from a large supplier. This is more complicated than direct selling, since you have to think about the supply relationship, how you set prices, and choosing the right wholesaler. Telesales or online sales If your products can be bought over the phone or online, the sale is very time and cost efficient. This is a good way of selling to repeat customers, who you have already built a relationship with and who trust your business. Using the telephone means that you can still have contact with the customer to help the relationship develop.
- Fundraising: http://nonprofitbanker.com/fundraising/the-five-essential-fingers-of-a-fundraising-strategy/ COMMUNITY – private donations from individuals that identify with or benefit from a particular charity. BUSINESS – funding from companies that either agree with a cause or see value in the publicity gained by associating with a cause or organization. INCOME – revenue gained from selling a product or service that benefits others and that advances the mission of the organization. FOUNDATION – grants from local/international foundations and institutions. GOVERNMENT – grants or contracts from either local or federal governments where the nonprofit operates. Fundraising Who are our potential Funders (Community, Business/Private, Foundations, Government)? When and how often do they fund? What are their requirements (reporting/control)? Who are we aligned with? Who else cares? Who can we collaborate with? What are our relationships? What is our purpose/mission? What ‘problem’ are we solving? What is the need? What is our budget? Why do we most deserve the funding? Sales – need a Sales Plan What is your go-to-market strategy? How will you drive market demand for your product? What is your branding strategy? What is your pricing strategy? What is your marketing communication plan? How will you recruit and build your sales force? What is your distribution plan? Who will be your key partners? What is your customer retention strategy? Who are your largest customers? Can your sales people sell?
- From: http://www.referenceforbusiness.com/encyclopedia/Cos-Des/Customer-Relations.html The purpose of most well-developed customer relations programs is to turn one-time or occasional customers into loyal buyers. Keeping existing customers is cheaper than finding new ones, and having a base of loyal customers for one product or service improves sales for the company's other offerings. From: How Smaller Companies Earn Customer Loyalty To retain customers over the long run, companies have to fully understand why they have chosen to do business with you in the first place—that is, your value proposition vs. those of competitors. This calls for a deeper level of analysis than many smaller companies provide exceptional service Hire people who are positive and naturally good at getting to know others Being Positive and Being Personal—with Passion Prevent a complaint customers quit but customers rarely complain when they are dissatisfied with product quality or upset over poor service The essential ingredient in maintaining customer loyalty is follow-through Having regular personal contact with customers and listening closely to their needs; and it requires acting expeditiously to analyze and respond to complaints