Training Tuesday:Asking Questions

Training Tuesday: Asking Questions

Asking good questions can make the difference between making a bad sales call and engaging the prospect in a worthwhile conversation. Here are some important tips to remember:

Use ‘assumptive problem’ open-ended questions
Instead of saying, “Do you have any problems with moving your product now?” say, “How are you handling problems that occur while transporting your product?” If you know your industry well enough, you’re aware of the problems that everyone seems to have. You are asking your prospects to quantify and explain the implications and consequences of those problems.

Use ‘instructional statements’
Don’t ask for information; tell them to give it to you. Use phrases like, “Tell me a little about……….”; “Share with me……….”; “Give me some idea of……….”; “Detail the way………” and, “Let’s talk about how you……….”

Ask yourself questions before you make the call
Think about the call before you make it. Ask, “What do I want them to do as a result of this call?” This will determine your primary objective. Then ask, “What information do I need from them?” This will provide whatever qualifying or information-gathering questions you must ask. Finally, ask, “What do I need them to think and believe in order to take the action I desire?” The answer to this question provides the points you’d ideally like to get across….without actually making the points yourself. They are ideas for them to discover through your questions. The reasoning is that people always believe more of what they say and think than of what you say. One of the surest ways to give yourself a fair chance at making a sale is to ask the right questions.

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Intermodal 101:Equipment Availability

Intermodal 101: Equipment Availability

In our last post, we discussed the impact long-term rates had on the railroads as a contributing factor to the creation of rail controlled, door to door product.  But there are other reasons the rails have created this service.

Equipment availability in a given area varies at different times of the year. There may be extreme variation in equipment that result in an area being completely out of equipment for some months and having an excess of equipment in other months. A good example of this would be the empty equipment supply in Los Angeles, CA.  During fall peak season, equipment is very tight out of California due to all the import freight coming in from Asian markets that must deliver in the interior of the country so it is available for the holiday shopping season.  During January and February, there has typically been a lull in shipping from the west coast, so they become over-supplied.

To take advantage of this fluctuation in equipment supply, the rails decided they needed to have more control. To do this, the rails had to begin offering a service that was more transactional in nature, something they could change to reflect more current flows and to have more control over the flow of the boxes.

Rails began taking on the operational requirements that had been the domain of the IMC.  By working with drayage carriers they were able to cobble together a complete door to door offering.  The rates put together are spot market rates, which allows the rails to consider their network and box supply to raise or lower prices based on a day by day rate basis.

There are other contributing factors to the rails deciding to offer door to door service, but rates and equipment supply are obviously at the top of the list.  The rails have come up with a way to maximize their revenue.  But the door to door offering doesn’t address every need, every day.  There are still opportunities for the shipper and the IMC to participate.  Next time, we will go over some of the advantages that can be realized by the shipping community.

Check in on the 1st and 3rd Wednesday of every month for more information on intermodal and how it can benefit you!

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Training Tuesday:Addressing Problems

Training Tuesday: Handling Problems

It doesn’t take long for anyone in the transportation business to realize that occasionally bad things happen to good people. You name it, it can and occasionally will happen.

When customers aren’t happy, whether it’s because a shipment is late, damaged or lost, five things can happen—and four of them are bad:

THE CUSTOMER DOESN’T LET US KNOW THEY WERE UNHAPPY WITH SUNTECKTTS’ SERVICE. NOT GOOD.

THE CUSTOMER CHANGES CARRIERS IN SILENCE. NOT GOOD EITHER.

THE CUSTOMER TELLS HIS OR HER FRIENDS. WORSE.

THE CUSTOMER TALKS TO THIRD PARTIES. WORST OF ALL.

THE FIFTH OPTION IS COMMUNICATION.

The best possible outcome is that your unhappy customer talks to you.  This gives you a second chance to understand their needs, identify and correct problems, and convert your dissatisfied customer into a happy customer – one who’ll keep coming back.

Here are the proper procedures to best help your customer.

1.Inform the customer as soon as you can—they’re absolutely going to find out—no news travels more swiftly than bad news.

2.Get to the point quickly by saying something like, “You’re not going to like hearing this”

3.If your customer approaches you with a complaint, don’t interrupt.  Don’t become defensive.

4.Take complaints seriously, no matter how trivial the issue may seem to you.

5.Don’t create distance from SunteckTTS by referring to it as “they.”  Use “we” instead, and proudly stand behind our service without making excuses.

6.Apologize sincerely.

7.Avoid focusing on fixing the blame; instead focus on fixing the problem.

8.Let your customer suggest alternatives.  Every customer has some idea of what they want as a solution to every problem.

9.Do something extra. Correcting the problem isn’t always enough.

10.Trust the customer’s sincerity.  It’s better to err by believing too many people than by not believing enough people.

11.Never just say, “I don’t know.” When you don’t know an answer, simply say, “I’ll look into the matter,” and then look into it, soon.

12.Empathize with the customer.  If you can’t relate to the complaint itself, at least relate to the process of complaining.

13.If the timing is appropriate, ask for future business—let the customer know this does not represent SunteckTTS’s usual high quality of service.

14.Follow-up.   Make sure the customer is truly satisfied.

15.Don’t let it affect your interaction with the next customer. And most importantly:  Most customers will accept occasional mistakes.  How you deal with the problem and how you resolve it is what will distinguish you as a real professional.

16.Always remember that listening to your customer is the best way to help in an uncomfortable situation.  Some people want to be listened to even more than they want their problems solved.

Check back next Tuesday for more tips on Selling SunteckTTS. The full playlist of videos can be found on our YouTube channel.

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LTL 101:Billing

LTL 101: Billing Accuracy

Many shippers have expressed concern about accuracy of LTL carrier’s billing practices. Having pushed the LTL carriers to be more vigilant with making corrections for weight and other aspects of shipments for proper revenue capture, SJ Consulting researched the validity of such perception by conducting an extensive survey with several large LTL shippers, 3PLs, and freight audit and pay firms, with particular thanks to Williams & Associates. The freight charges on LTL shipments by these companies exceed $8 billion over a 12­ month period, representing 22 percent of the total industry revenue. For decades, the LTL industry has relied on an honor system for shippers to provide true characteristics of their shipments, required to accurately bill the customers for their shipments.

The survey found the range of billing accuracy was 94 to 99 percent depending on the carrier, with the average being 97 percent. The most interesting revelation of the survey was that what shippers perceive as a billing error actually is due to shippers providing an estimated weight or freight class for dimensional attributes of their shipment that are corrected on more shipments as more LTL carriers deploy scales and dimensional machines. Given that about 50% of bills of lading have errors in weight or description of the shipment, it’s no surprise that a correct invoice from a LTL carrier can get perceived as a billing error.

Despite shippers’ perception, the LTL industry has an impressive record in billing accuracy, and it is finally converting rapidly from an honor system.

 

Check back every 2nd and 4th Wednesday each month for more inside information on LTL through our Multimodal Wednesday Series.

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Training Tuesday:Delivering Great Customer Service

Training Tuesday: How to Deliver Great Customer Service

Many customers are suspicious of freight salesmen. They think that we’re there at the time of the sale but not when they need us if something goes wrong. Many people get buyer’s remorse. When they get that follow-up email or phone call, or they experience the other customer service techniques discussed here, it makes them think, “Yes, I made the right decision.”

Constant communication is the key to building a lasting relationship with customers and prospects.  You must stay in touch.

Let’s define SERVICE as anything that builds trust and confidence in the company and the services you provide to the customer.

Following is a list of services that are specific and measurable. You can use this checklist to make service a more specific part of your sales planning.

1.Write thank you notes as part of your service system. Carry cards in your car and fill them out at the end of the call while still in the customer’s parking lot.

2.Schedule a visit of upper management to your client. This is a symbolic and information gathering visit.

3.Conduct agency or corporate office tours on a regular basis. Clients need to see the agency or corporate office, especially large shippers, so that they can see the depth of the professionalism and dedication that goes into moving their freight.

4.Hold round table discussions about business trends and opportunities with key clients.

5.Throw a client appreciation party, cookout, or breakfast.

6.Invite your customer to accompany you to seminars, speeches, and functions.

7.Return all phone calls immediately. The simple act of returning a phone call can differentiate you from the competition.

8.Vary your modes of contact. A call, package, or email will have more impact if it’s reinforced with another form of contact.

9.Make buying fun. Selling doesn’t have to be all serious business. You don’t have to sacrifice professionalism to make buying an energizing, enjoyable experience that will keep your customers coming back.

10.Make sure internal employees are well-trained in good customer service techniques. 

11.Most importantly, do what you promised, do it when you promised, and do it more often than the competition.

 

Check back next Tuesday for more tips on Selling SunteckTTS. The full playlist of videos can be found on our YouTube channel.

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Intermodal 101:Rates

Intermodal 101: Rates

Use of rail controlled, door to door offerings have some positive and negative components to consider. It is important to contemplate them when trying to determine if this option for intermodal shipping fits your needs.  This product offering has been beneficial to the railroads and doesn’t show signs of changing, but to understand why it is good for the railroad, it is important to understand the dynamics that lead to this service.  This post will discuss one of the major contributing factors – rates.

Historically, the rails went to market through a controlled network of 3rd Party Logistics (3PL) companies who held contracts with the rails to sell their service in a ramp to ramp environment.  The 3PLs who held these contracts are known as Intermodal Marketing Companies (IMCs).

It was the job of the IMC to coordinate the origin drayage, rail linehaul and the destination drayage, to put together a complete move from origin to destination.  This allowed the IMC to consider different rails and different drayage firms to arrive at the solution the customer was looking for – whether that was speed, ride quality, lower rates, etc.

This method relied on contracted rates between the rail providers and the IMC’s.  It may be Freight All Kinds (FAK) rates that are basically the same across all IMCs or Special Pricing Quotes (SPQs) that are put in place for a specific Beneficial Cargo Owner (BCO).

As railroad consolidation began to pick up steam, the rails decided to limit the number of IMCs they would allow.  Each IMC that had a contract in place could continue moving freight with the rail on a ramp to ramp basis.   This was an advantage for the IMC community, but was a restrictor to the railroads and their efforts to grow.

Going hand in hand with rates is equipment supply, which we will discuss in our next post.

 

Check in on the 1st and 3rd Wednesday of every month for more information on intermodal and how it can benefit you!

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LTL 101:PODs and Additional Services Charges

LTL 101: PODs and Additional Services Charges

The last blog discussed educating shippers to ensure the BOL is set up correctly and to avoid a possible dispute with the carrier regarding the invoice. This week is discussing educating consignees so they know what to expect at the time of delivery.

It is very important to educate your consignee BEFORE the freight is delivered about what the process will be like. Will they need a liftgate? Will the driver be helping unload the freight in any form or manner? By asking these questions in advance, and by making sure that you are on the same page as the consignee, you can minimize additional charges on the invoice.

On the delivery receipt/proof of delivery (POD), issues should be noted if you suspect that the value of the product has been compromised. Make sure to note any damage to the packaging, and/or missing product. Having these notes on the POD makes it easier to file a freight claim with the carrier if necessary.

Another tactic you can take is refusing a shipment if there is damage; this means that the consignee does not accept the freight in the condition presented – meaning you will eventually file a damage claim. This will alert the carrier that something is wrong with the shipment and that they should get in touch with the appropriate party. Make sure you use this tactic responsibly and honestly, because if a shipment is not damaged the carrier can tack on a redelivery fee. Yikes!
Five of the most common additional services on a POD include:

  1. Lift Gate – Hydraulic lift on the rear of a truck used to assist in the unloading of freight.
  2. Inside Delivery – The driver is only responsible for moving the freight off the truck. If the driver helps move the freight more than a few feet away from the truck, even if it’s not “inside,” then an Inside Delivery fee may apply. Be very careful with this one because the terminology can be misleading and it varies by carrier.
  3. Limited Access (Residential) – This is up to the carrier’s discretion, however, there are locations that will always be deemed limited access.
  4. Sort/Segregate – Certain locations may require a carrier to sort and segregate a shipment. This is additional handling beyond the normal duties of a driver that will incur additional fee(s).
  5. Detention – With most LTL carriers, the first 30 minutes from when the driver arrives are free. Any additional time is subject to an additional detention fee.

 

So the next time you sign a POD when receiving your shipment, be sure to review it and see if any additional services listed are being used. Services can be pre-printed or added to the POD by a driver, and the additional charges may vary. In some cases, it may be good practice to have your consignee obtain a copy of the POD themselves.

 

Check back every 2nd and 4th Wednesday each month for more inside information on LTL through our Multimodal Wednesday Series.

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Intermodal 101:Door to Door Rail

Intermodal 101: Door to Door Rail

For people who have not shipped via Intermodal in the past, utilizing rail controlled, door to door offerings can be an effective way to familiarize yourself with it.

Typically, an Intermodal shipment requires coordination of a drayman to handle the pickup, a railroad to move the shipment from origin ramp to destination ramp and another drayman to handle the delivery to the consignee.  This type of shipping usually results in an affordable transportation option for the shipper, though it can be daunting for a shipper. If the shipper lacks experience, coordinating these pieces can feel too risky to justify adding intermodal into their shipping process. In this case, the railroads have another option.

One of the options a shipper might utilize is “Door to Door” shipping on the railroads.  This option allows a shipper some of the advantages of shipping Intermodal, but the rail company is responsible for coordinating the details. The shipper is responsible for dispatching one party, the same as they do for an over-the- road (OTR) shipment.  There are several reasons that a shipper might find this advantageous.

First, the shippers’ operational system already allows them to set up a shipment with one carrier and one party to pay. A “Door to Door” shipment with the rail is a natural fit for that system, because it is only one party to pay.

Secondly, using “Door to Door” simplifies the monitoring of authority and insurance requirements to one party.

Finally, “Door to Door” reduces complications in accessing intermodal equipment, as the railroads have access to empty equipment from loads moving into the area a shipper is looking to ship from.

In the next installment, we will discuss more of the benefits and drawbacks of using the railroad “Door to Door” products.

 

Check in on the 1st and 3rd Wednesday of every month for more information on intermodal and how it can benefit you!

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Training Tuesday:Meet & Greet

The initial approach to a prospect is the most crucial part of the sales presentation. All the selling skills in the world won’t matter if you don’t get your foot in the door.

Up front I state my name, the company I represent — Sunteck, and the particular transportation services I’m there to sell. Unlike a lot of salesmen and saleswomen, I don’t beat around the bush. I’m a big advocate of concept selling. I tell the prospect, “I’d like to share an idea with you. I’m in the transportation business. I’m assuming that you’re always looking for ideas that will help your company ship or receive goods in a way that will make your company more efficient, more service driven, and more profitable. I’d like to run some ideas by you.”

This statement is a big attention-getter and opens the door. It creates immediate interest. Of course you have to substantiate your statement in your presentation.

The first moments of your sales call should create initial interest by making a statement. “Sunteck is in the business of providing solutions for a variety of different transportation needs. Technology is moving very fast, and I deal with many companies similar to yours. You need a transportation provider which not only can handle your current needs, but is also working on your needs for the future.” Another great opener is, “Our main goal at Sunteck is to enhance your productivity.”

Early in your initial meeting be sure to mention the names of several of your satisfied customers. This is done to establish credibility. It lets the prospect know that Sunteck’s shipping solutions have benefited leading logistic decision-makers that came to the well-informed decision to trust you and your ideas. I always make it a point to discuss other customers in their industry who are working in similar environments. I wouldn’t, for example, mention how we handle an account like Microsoft to a small locally owned computer software company. Their problems are so different that the prospect won’t be able to relate to an organization that is one hundred to one million times bigger. When I speak about familiar customers who have found the solutions to similar shipping problems through Sunteck, I get the prospect’s immediate attention.

When you use a prospect’s competitors or companies in similar industries as examples, it creates an opportunity to use another great opening approach. “Mr. Fulton, I’m Dave Dallas with Sunteck. Has Sean Clancy mentioned my name to you?” It doesn’t make any difference what the prospect answers, this breaks the ice. In fact, even when I don’t have a referral, I’ve been known to mention the name of one of the prospect’s competitors who’s a client of mine. Now, it’s highly unlikely that his competition would have talked to him about me, but again, it’s an icebreaker. And you can bet that he’s interested in all the transportation services that are available to his competition.

If I know beforehand that the prospect knows little about Sunteck and nothing about me, I sometimes send a short bio-sketch and a few magazine and newspaper articles that have featured Sunteck or were written by me. I provide something tangible to the prospect that adds a new dimension to the relationship. Rather than simply sending them a brochure about Sunteck, I personalize it, and at the same time the articles express something about me and my philosophy on transportation.

There are too many freight sales reps in the U.S. today to even come up with an accurate number. I think it’s important for your prospect to know about your qualifications. Tell the prospect about yourself. No grandstanding or patting yourself on the back, just an informative look at your career and the customers you’ve helped. It lets the prospect know that he’s dealing with a professional. It tells him that he’s not dealing with the run-of-the-mill freight rep. In the transportation business there are two kinds of sales people: those who add value to the client’s traffic department, and those who seem to mishandle every shipment or transaction their company is involved with (late, damaged, billed incorrectly, etc.). Let the customer know early on that you fall into the first category.

Of course, when the moment of truth arrives, you’ll have to find the best way to make a good first impression. Take into consideration the particular dynamics of your prospect’s age, position, and gender in comparison with your own. Accommodate and welcome the differences.

Every prospect will react differently to what you have to say. Some prospects will give you all the time in the world, while others believe making time for a ten minute meeting threatens a crisis. Some are skeptical, while others are freethinkers who pride themselves on being open to new ideas. The point is you can’t win everyone over with a single script designed to handle the first few minutes.

Usually there is an advantage to beginning an exchange by focusing on your own observations and experiences. Doing so takes some of the pressure off of the prospect, who’ll be expecting you to try to “draw him out.”

You can always find something that will serve as a positive conversational starting point that has to do with the way your prospect has chosen to decorate his or her surroundings. It may sound corny, but it’s a fact, people say a lot about themselves in the way they decorate their offices.

First impressions are lasting impressions. By using the advice in this chapter you‘ll put the customer at ease and give them confidence in Sunteck’s ability to handle their demanding logistic needs. In the process, you’ll develop a lot of new customers and lasting friendships.

“The better your relationships the shorter your sales cycle and the more money you will make.”

Here are fourteen additional suggestions that will help you create a winning first impression.

  1. Believe in yourself. If you don’t believe you can win the prospect’s confidence, you’ll self-destruct in the opening moments of your first sales call.
  2. Develop and maintain a positive attitude. The first thing a new prospect notices is if you’re upbeat and positive.
  3. Visualize the first meeting with your prospect before it takes place. It will help you become more assertive and confident.
  4. Shake hands firmly, but don’t overdo it. This applies to men and women. A weak handshake creates doubt in the mind of the prospect.
  5. Be conversational. Speak as though you’re talking to an old friend.
  6. Don’t prejudge the prospect. Everyone is different. Respect their differences.
  7. Qualify the buyer early, preferably before your first face-to-face meeting. Don’t waste your time on someone who has no impact on the decision about whether or not to use Sunteck.
  8. Believe in Sunteck and the services you sell. If you don’t, the prospect won’t either.
  9. Know the prospect’s industry before you make the call.
  10. Know the prospect’s business before you make the call.
  11. Look professional. Your appearance is the first thing the prospect notices.
  12. Be prompt. Lateness tells the prospect you don’t respect his or her time. In our industry, it’s particularly telling. How can the prospect expect Sunteck to be on time with his shipments if you can’t make it to your very first meeting on time?
  13. Use humor early. It’s one of your most effective sales tools. Laughter signals approval, so make your prospect laugh. Keep in mind, what is humorous to some, misses the mark with others. Keep your humor PG13.
  14. Be sincere. Sincerity wins customers – insincerity loses customers and prospective customers.
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