Deck 9: Expanding Customer Relationships

Question 1

NATURALLY BEAUTIFUL, INC.
BAKGROUND
Naturally Beautiful, Inc. is a maker and marketer of organic cosmetics. Its cosmetics are formulated from all-natural organic ingredients. Although the company currently serves primarily the higher-end market, distributing through upscale department stores and boutiques, it would like to expand its distribution channels. It is currently developing an organic line to sell through outlets such as Walgreens, CVC, and Wal-Mart. Long-term plans include expanding internationally, first to Canada and Mexico, and eventually to Western Europe and beyond. Sales are strong and continue to rise. The company gives much of the credit for its success to its salesforce, which has done a great job expanding into new outlets while establishing and maintaining strong customer relationships.
Jill Aunaturale, a nontraditional student, was hired as a sales representative by Naturally Beautiful out of college approximately ten months ago. Since being hired she has had a good deal of success, landing several new accounts. In fact, if she can land a few more accounts by the end of the rapidly approaching fiscal year, she will exceed her quota and achieve a hefty bonus. Jill is counting on this bonus because she has planned a big family trip and does not want to let her family down.
CURRENT SITUATION
Lately, Jill has heard various concerns from several of her customers. For instance, the other day she received a voice mail from Rick at Beauty Boutique, a recently acquired customer whose order was incorrect. A few items were missing from the order. Jill figured that shipping must have inadvertently omitted the items and that Rick could give them a call to get it fixed. She figured that it was not her fault, Rick still had product to sell and she certainly did not have time to mess with this. Similarly, she received a text from Kim at Devine's department store indicating that an expected delivery was late. Again, Jill figured she could not do anything about the delivery. She texted Kim to tell her to contact the shipping department at Naturally Beautiful about the matter. Jill also received a second e-mail from Sarah at Cosmetics unlimited:
Dear Jill,
A few weeks ago you promised you would return to train our beauty consultants on your newest product line. Our consultants need to fully understand the benefits of this new product and how it is to be applied so that they can best serve our customers. As you know, we take great pride in providing the highest quality products and services to our customer base. We discussed this when you offered me your line. Although we like your line, if we are unable to offer our customers top-shelf service with your brand then we may have to look elsewhere.
Sincerely,
Sarah
Jill recalls telling Sarah that she would conduct training for her sales consultants but has been so busy working to get new accounts that she put it on the back burner. Jill was not sure that she could put Sarah off much longer, but felt it would be in her best interest to write her back and stall her for at least a couple more weeks. By then, she thought, she might have exceeded her quota.
To Jill, these were but minor customer issues, not even problems. In her opinion, these were nothing more than "needy" customers. As far as she was concerned, she was delivering a great product at a great price. Besides, she had more sales to make and nobody was going to help her if she came up short on providing that great family vacation she promised.
What types of activities can Jill do after acquiring an account to enhance customer value and ensure long-term customer relationships?

Answer 1

NB is a popular organic cosmetics maker and marketer, which are made of organic natural ingredients. The company has solely concentrated on the high-end market, distributed through boutiques and department stores. NB is likely to increase their distribution channels and the long term plan includes expanding to C and M countries initially, followed by entering the W markets and beyond. The company holds a strong sales reputation in the market, crediting their sales force for the successful implementation of the job expansion plans and in turn developing strong customer relationships.
JA, a student hired as a sales representative at NB ten months ago has been performing well with the development of several new accounts and also expected to add few more to the list by the end of the current year. With which, she exceeds her destined target and would receive a heavy bonus. She even planned a big family trip with the bonus amount, which does not want to be disturbed at any cost and let her family down.
In the current context, JA has been hearing concerns from multiple customers with problems such as delivery of incorrect order, delays in the delivery, and delay in delivering the assured training classes to one of the customers. Where, JA feels all these as minor concerns and delivering the greatest products at greatest price is what she really needs to concern about. As she is required to meet her target yet in order to make her family vacation plan alive.
The type of activities that JA can do after acquiring an account to enhance customer value and ensure long term relationships are as follows:
• JA need to take up interactive sessions with the personnel of service and delivery departments in order to assess and address the hurdles faced by them in providing accurate and timely services, which enhances the customer satisfaction
• The customers are to be met on a frequent basis for developing a strong bond and relationship, by collecting the feedback and suggested improvements expected in the services delivered by JA
• JA need to extensively move into the new markets and assess the existing market conditions to deliver the best services to the customers as per their requirements
• JA must take up activities to develop customer service efficiency and timely deliverables workshops in relation to its importance to the business, which improves goodwill of JA and in turn the organization
• JA must adapt and frame new techniques and strategies to make innovations in developing the customer relations along with improving sales
Thus, the above activities help in maintaining the existing customer base and for developing future customer relations for prospective business in the long run.

Question 2

NATURALLY BEAUTIFUL, INC.
BAKGROUND
Naturally Beautiful, Inc. is a maker and marketer of organic cosmetics. Its cosmetics are formulated from all-natural organic ingredients. Although the company currently serves primarily the higher-end market, distributing through upscale department stores and boutiques, it would like to expand its distribution channels. It is currently developing an organic line to sell through outlets such as Walgreens, CVC, and Wal-Mart. Long-term plans include expanding internationally, first to Canada and Mexico, and eventually to Western Europe and beyond. Sales are strong and continue to rise. The company gives much of the credit for its success to its salesforce, which has done a great job expanding into new outlets while establishing and maintaining strong customer relationships.
Jill Aunaturale, a nontraditional student, was hired as a sales representative by Naturally Beautiful out of college approximately ten months ago. Since being hired she has had a good deal of success, landing several new accounts. In fact, if she can land a few more accounts by the end of the rapidly approaching fiscal year, she will exceed her quota and achieve a hefty bonus. Jill is counting on this bonus because she has planned a big family trip and does not want to let her family down.
CURRENT SITUATION
Lately, Jill has heard various concerns from several of her customers. For instance, the other day she received a voice mail from Rick at Beauty Boutique, a recently acquired customer whose order was incorrect. A few items were missing from the order. Jill figured that shipping must have inadvertently omitted the items and that Rick could give them a call to get it fixed. She figured that it was not her fault, Rick still had product to sell and she certainly did not have time to mess with this. Similarly, she received a text from Kim at Devine's department store indicating that an expected delivery was late. Again, Jill figured she could not do anything about the delivery. She texted Kim to tell her to contact the shipping department at Naturally Beautiful about the matter. Jill also received a second e-mail from Sarah at Cosmetics unlimited:
Dear Jill,
A few weeks ago you promised you would return to train our beauty consultants on your newest product line. Our consultants need to fully understand the benefits of this new product and how it is to be applied so that they can best serve our customers. As you know, we take great pride in providing the highest quality products and services to our customer base. We discussed this when you offered me your line. Although we like your line, if we are unable to offer our customers top-shelf service with your brand then we may have to look elsewhere.
Sincerely,
Sarah
Jill recalls telling Sarah that she would conduct training for her sales consultants but has been so busy working to get new accounts that she put it on the back burner. Jill was not sure that she could put Sarah off much longer, but felt it would be in her best interest to write her back and stall her for at least a couple more weeks. By then, she thought, she might have exceeded her quota.
To Jill, these were but minor customer issues, not even problems. In her opinion, these were nothing more than "needy" customers. As far as she was concerned, she was delivering a great product at a great price. Besides, she had more sales to make and nobody was going to help her if she came up short on providing that great family vacation she promised.
For each of the concerns expressed by Jill's customers in the case, explain an alternative means for handling the concern.

Answer 2

NB is a popular organic cosmetics maker and marketer, which are made of organic natural ingredients. The company has solely concentrated on the high-end market, distributed through boutiques and department stores. NB is likely to increase their distribution channels and the long term plan includes expanding to C and M countries initially, followed by entering the W markets and beyond. The company holds a strong sales reputation in the market, crediting their sales force for the successful implementation of the job expansion plans and in turn developing strong customer relationships.
JA, a student hired as a sales representative at NB ten months ago has been performing well with the development of several new accounts and also expected to add few more to the list by the end of the current year. With which, she exceeds her destined target and would receive a heavy bonus. She even planned a big family trip with the bonus amount, which does not want to be disturbed at any cost and let her family down.
In the current context, JA has been hearing concerns from multiple customers with problems such as delivery of incorrect order, delays in the delivery, and delay in delivering the assured training classes to one of the customers. Where, JA feels all these as minor concerns and delivering the greatest products at greatest price is what she really needs to concern about. As she is required to meet her target yet in order to make her family vacation plan alive.
The alternative means of handling each of the concern expressed by JA's customers are as follows:
• Concern of R regarding the delivery of the incorrect order:
It is evident that the shipping related problems can be resolved by making a simple call to the concerned department. Instead in the current context, the new customer R has directly taken the concern to JA. The best alternative to sustain the faith and confidence of the new customer like R is 'JA personally contacting the concerned department and making arrangements to resolve the issue on a priority basis, also by conveying the message to R that the problem would be resolved within the particular timeframe'. This helps in maintaining the relationship strong in spite of such tiny mistakes in the long run
• Concern of K regarding the delay in the delivery:
Since the delay of the delivery was taken to the notice of JA, she would have texted back with the exact reason for the delay and the assured time of delivery rather than simply advising her to contact the shipping department. The customers are well aware about the ways of contacting the company service centres but, they enquire with the personnel due to the intensity of the concern or because of the relation with them. Hence, it is highly important to live up to their expectations in terms of helping or assisting them for a sustainable long run relationship
• Concern of S regarding the training session:
It is evident that JA has assured to take up training session for the personnel of S beauty consultants. She has ignored about the commitment in a rush to reach her target and in turn her family vacation. JA would have scheduled to take up a swift training session or arrange alternative sources to ensure the promise of training to be fulfilled or She would have personally turned up to meet S and explain her reasons for delay in the training session by fairly stating the reasons. It not only helps to gain few more weeks of time to plan for a session but, also sustains the confidence and responsibility towards a commitment made by JA.
Thus, it is clear from the above alternatives that the customers are to be treated with high priority in order to maintain sustainable long term relationships and in turn, to maintain company's goodwill.

Question 3

NATURALLY BEAUTIFUL, INC.
BAKGROUND
Naturally Beautiful, Inc. is a maker and marketer of organic cosmetics. Its cosmetics are formulated from all-natural organic ingredients. Although the company currently serves primarily the higher-end market, distributing through upscale department stores and boutiques, it would like to expand its distribution channels. It is currently developing an organic line to sell through outlets such as Walgreens, CVC, and Wal-Mart. Long-term plans include expanding internationally, first to Canada and Mexico, and eventually to Western Europe and beyond. Sales are strong and continue to rise. The company gives much of the credit for its success to its salesforce, which has done a great job expanding into new outlets while establishing and maintaining strong customer relationships.
Jill Aunaturale, a nontraditional student, was hired as a sales representative by Naturally Beautiful out of college approximately ten months ago. Since being hired she has had a good deal of success, landing several new accounts. In fact, if she can land a few more accounts by the end of the rapidly approaching fiscal year, she will exceed her quota and achieve a hefty bonus. Jill is counting on this bonus because she has planned a big family trip and does not want to let her family down.
CURRENT SITUATION
Lately, Jill has heard various concerns from several of her customers. For instance, the other day she received a voice mail from Rick at Beauty Boutique, a recently acquired customer whose order was incorrect. A few items were missing from the order. Jill figured that shipping must have inadvertently omitted the items and that Rick could give them a call to get it fixed. She figured that it was not her fault, Rick still had product to sell and she certainly did not have time to mess with this. Similarly, she received a text from Kim at Devine's department store indicating that an expected delivery was late. Again, Jill figured she could not do anything about the delivery. She texted Kim to tell her to contact the shipping department at Naturally Beautiful about the matter. Jill also received a second e-mail from Sarah at Cosmetics unlimited:
Dear Jill,
A few weeks ago you promised you would return to train our beauty consultants on your newest product line. Our consultants need to fully understand the benefits of this new product and how it is to be applied so that they can best serve our customers. As you know, we take great pride in providing the highest quality products and services to our customer base. We discussed this when you offered me your line. Although we like your line, if we are unable to offer our customers top-shelf service with your brand then we may have to look elsewhere.
Sincerely,
Sarah
Jill recalls telling Sarah that she would conduct training for her sales consultants but has been so busy working to get new accounts that she put it on the back burner. Jill was not sure that she could put Sarah off much longer, but felt it would be in her best interest to write her back and stall her for at least a couple more weeks. By then, she thought, she might have exceeded her quota.
To Jill, these were but minor customer issues, not even problems. In her opinion, these were nothing more than "needy" customers. As far as she was concerned, she was delivering a great product at a great price. Besides, she had more sales to make and nobody was going to help her if she came up short on providing that great family vacation she promised.
What are the potential long-run implications of how Jill is handling her current customers?

Answer 3

NB is a popular organic cosmetics maker and marketer, which are made of organic natural ingredients. The company has solely concentrated on the high-end market, distributed through boutiques and department stores. NB is likely to increase their distribution channels and the long term plan includes expanding to C and M countries initially, followed by entering the W markets and beyond. The company holds a strong sales reputation in the market, crediting their sales force for the successful implementation of the job expansion plans and in turn developing strong customer relationships.
JA, a student hired as a sales representative at NB ten months ago has been performing well with the development of several new accounts and also expected to add few more to the list by the end of the current year. With which, she exceeds her destined target and would receive a heavy bonus. She even planned a big family trip with the bonus amount, which does not want to be disturbed at any cost and let her family down.
In the current context, JA has been hearing concerns from multiple customers with problems such as delivery of incorrect order, delays in the delivery, and delay in delivering the assured training classes to one of the customers. Where, JA feels all these as minor concerns and delivering the greatest products at greatest price is what she really needs to concern about. As she is required to meet her target yet in order to make her family vacation plan alive.
The potential long-run implications of how JA is handling her current customers are as follows:
• There would be a potential threat of losing the goodwill among the customer market in turn, creates negative influence on the sales
• The dissatisfaction might build among the customers due to delay in deliverables and their related concerns like inaccurate response, incorrect delivery's etc.
• JA might not be able to meet the destined targets in the long run, due to unhealthy customer relations
• There are greater chances of losing the expected market share as competitors would act accurately in taking advantage of the flaws of NB
• It would be a hurdle for the global expansion and restricts the market reach due to negative influence in the existing markets
Thus, it is evident that retaining the potential customer relationship is highly important for maintaining a sustainable business growth and sales.