NMIMS Hyderabad

Customer
Relationship
Management
The Role of Salesperson in the stages of relationship
development process

Admin

By Siddharth Ahuja
A004
PGDM (2013-15)

Customer Relationship Management

Q. What should be the focus and main activities of a global salesperson in
each stage of the relationship development process?
Ans. The key factors that drive the development of an effective customer
relationship are interdependence, cooperation and mutual trust. Perceived
interdependence is the catalyst that gives both sellers and buyers a reason to
cooperate and the motivation to reciprocate the necessary trust and commitment to
build a successful relationship.
Stages in the development of a customer relationship process are as follows and the
role of salesperson in each stage is as follows:

The Pre-relationship stage: This is the event that triggers a buyer to seek
a new business partner. The role of the salesperson in this stage is:
1. Knowing About The Customers:
The first step is to know that they exist. One person usually knows
first and the second person may not know until the first meeting.
Knowing about them may happen in various ways, for example a sales
person hears of a possible customer from a colleague.
2. Learning About Them:
More information is often needed to motivate a desire for contact.
This may be done by first-hand research, where the person actively
looks for information by the other party.
3. Wanting to Meet:
With enough information, the motivation for a relationship begins.
This can range from a cautious interest to early strong desire.
4. Seeking Contact:
With the motivation to meet, the next (and sometimes difficult) step is
figuring out how to get to meet them. In sales cold calling is a difficult
and often unrewarding activity and other methods of prospecting may
also be used to connect with prospective customers.

The Early Stage: In this stage there is a certain amount of experience

between the two parties although a great degree of uncertainty and distance
exists. Role of the salesperson in this stage is:
1. First Contact:
First contact with the other person is an important and difficult stage
as early impressions are important although this is easy to get wrong.
Typically, greeting between strangers is highly formalized, with
handshakes, exchange of names with simple pleasantries such as
discussing the weather, local sports or safe topics.
2. Basic Exchange:
Possibly within the first contact and possibly in subsequent meetings
there is an exchange of information which allows each person to
refine their impression of the other person and decide whether they
want to continue with the relationship.
There is also information exchange which helps with the next stage of
deciding where to take the relationship. A sales person should try to
explain the customer that what he can do to help the customer.
3. Identify opportunities to build a relationship:
Try to identify the opportunities where a relationship can be built and
also the buying influences that are present.

4. Discuss Customers Concerns:

Try to understand the requirements and concerns of the customer as
efficiently as possible.

The Development Stage: At this stage high level of transactions lead to a

higher degree of commitment and the distance is reduced by a social
exchange. The duties of a salesperson in this stage is as follows:
1. Selecting an Appropriate Offering: By this stage the salesperson
is well aware of the buyers behavior and his requirements. If he
wants the relationship to survive then he needs to select an offering
that is appropriate for the customer.

2. Customize the Relationship: The salesperson should try to

customize the relationship according to the requirements of the
customer.
3. Revealing Secrets: A common part of developing intimacy is in
revealing things about yourself that you would not easily tell others.
This says 'I trust you' and encourages a reciprocal exposure of
vulnerabilities.
4. Intensifying the relationship or securing commitment: As the
people get closer, the things that they do together show increasing
commitment and sharing. The speed and depth of this stage will vary
greatly with the relationship.

The Long Term Stage: If a relationship reaches this stage then it shows
the mutual importance that the buyers company and sellers company has
for each other. Even when the relationship seems to have reached its peak,
there is more work to do to create a stable, longer-term relationship. The
role of sales person in this stage are:

1. Assess Customer Satisfaction

2. Take Actions to Ensure Satisfaction
3. Maintain Open Two Way Communication
4. Work to Add Value and enhance mutual opportunities

The Final Stage: In this stage the interactions between the salesperson
and the customer becomes highly institutionalized. There is nothing much
that a salesperson can do in this stage. The role of salesperson in this stage
are:
1. Demonstrating

Commitment:

When

commitment

is

demonstrated to the other person, it encourages them to also show

their

commitment

in

return

and

so

deepen

the

Demonstration of commitment includes activities such as:

relationship.

Giving one's time to the other

Keeping appointments (and arriving on time)

Talking up the partner in conversations with other people

Providing emotional support in times of distress

Giving gifts and otherwise transferring resources to the other

2. Manage Customer Value: This is a never ending role of salesperson
to manage the customer value over time.

3. Act as Customer Advocacy: It is the role of a sales person to act as

an advocate for the customer in the organization. He is responsible for
being the voice of the customer as he is directly in contact with the
customer.