Study on customer service cross-selling: companies should serve well, then sell
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Forum Corp. survey identifies sales behaviors that make customers more likely to buy or to resist

Boston, MA, August 17, 2004 -- Companies that want to sell more products and services through their customer service reps, a growing trend called cross-selling, should pay better attention to basic customer service if they want to succeed.

A new survey by The Forum Corp. of Boston indicates that, despite conventional wisdom to the contrary, consumers are open to sales pitches from customer service representatives, but only if the rep first solves the customer's problem and is sensitive to the customer's needs.

The survey of 1,624 respondents world-wide found that:

• 88 percent of customers value service reps who suggest alternative products or services that better meet their needs
• 73 percent are interested in learning about new products or services the company is promoting
• but many resist customer sales reps with annoying behaviors, especially selling from scripts, pushing products that aren't useful to the consumer, and/or continuing to sell after the consumer has indicated they are not interested.

The message is: "Serve well, then sell," said Tom Atkinson, director of research for The Forum Corp., a global workplace learning company. "Consumer goods companies have a huge opportunity to boost sales by training their customer service reps to cross-sell effectively, but they have to pay attention to the basics first. Customers who are pleased with their purchase and feel they have been served well are much more open to buying additional products and services."

Cross-selling occurs when a customer service representative, such as a call center operator or a cashier, attempts to sell other products and services to a consumer during a transaction, such as a purchase, a return or a complaint. "Do you want fries with that?" is the best-know example of cross-selling. As a result of such efforts, four out of every 10 consumers end up purchasing additional products or services sometimes or frequently, according to the survey.

The survey found that consumers are most likely to buy when the customer service rep exhibits the following three behaviors:

• focusing on the customer's needs versus pushing a product
• solving the customer's problem before talking about additional products and services
• describing how the products or services would benefit the customer.

At the same time, consumers are least likely to buy when the customer service rep engages in irritating behaviors, the top three of which are:

• continuing to sell after the consumer has said "no"
• following a script
• pushing products or services that are not useful to the consumer.

Lastly, the survey identified three behaviors that service reps don't do that consumers wish they did:

• speaking clearly and slowly
• respecting the customers time and right to say "no"
• giving the customer advice that helps him or her save money or better meet his or her needs.

"Excellent service can mean excellent sales," added Atkinson. "Companies that deliver mediocre service fail to generate additional sales and damage relationships with their existing customers. By contrast, companies with excellent service satisfy customers with their current purchases and open the door to future purchases."

The random Web surveys sample was weighted toward older and more affluent consumers who have more spending power than others. The average age was 43 and the average annual family income was $56,000. Slightly more women (53 percent) than men responded.

About Forum

The Forum Corp. is a global leader in creating learning solutions that address important business issues, with proven expertise in leadership development, sales performance, customer service and the implementation of loyalty-building customer experiences. Its clients include 130 members of the Fortune 1000. Visit Forum at www.forum.com.