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CUSTOMER SERVICE SKILLS

STUDENT HANDOUT
Contents

Customer Relationship Management (Day 28 2 sessions) Customer Types or Personalities (Day 29 - 2 sessions) Handling Difficult Customers (Day 30 2 sessions) Complaint Management (Day 31 2 sessions) Negotiation Skills - I (Day 32 2 sessions) Negotiation Skills - I (Day 33 2 sessions)

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CUSTOMER SERVICE
Begin the session by playing a video on customer service Elicit response from the participants about their learnings from the video Once the students start responding probe the following questions: 1. What do you think about banking industry in the Indian market? 2. What is a market? 3. Can you differentiate the types of banks like nationalized banks, foreign banks, private banks? How about HDFC is it a .. bank? 4. How many customers do you think does HDFC bank has? 5. How do you think HDFC bank is trying to acuire customers, develop and maintain these many millions of customers in India? 6. So do you think that HDFC bank should have a plan/ strategy to do this? After getting a response from the participants explain that CRM is a business philosophy which helps the bank to acquire new customers, develop and maintain relationship with the customer and this is termed as CRM Customer relationship management. Explain that to maintain the details of the customers- customer data base, complaints, transactions its necessary for the bank to have IT support functions in maintaining, therefore CRM is also defined as an IT enabled tool Determinants of CRM Probe a question to the large group about what is the most important thing in a relationship ---- a long term relationship, elicit response and then try to connect to the relationship between the bank and the customers, explain trust as an implicit/ explicit emotion the customer and the bank having towards each other, continue explaining what is customer value as the ability of the bank to satisfy the needs of the customer at a comparatively lower cost and higher benefit than offered by the competitor banks Functions of CRM: Probe a question to the participants about what makes an organization/ bank to grow in terms of profit, clarify the meaning of profit, volume, safeguard Profit- monetary terms

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Volume- Number of customers (customer acquisition) Safe guard- Not allowing the customers to let go with respect to different products and services offered by the competitor banks, pull the slide and then explain that direct functions are basic requirements for an organization/ banks to grow And indirect functions are actions necessary to achieve the objective which is growth of the bank Interaction-explain terms innovation wrt products & services, market wrt products & services offered by different banks, scouting the customers and safeguarding them to retain them on a longer perspective, making the products & services as accessible as possible to focus on CSAT customer satisfaction Why CRM necessary? Show the participants the slide and elicit response on what the customer actually needed and what was finally delivery? Explain the importance of understanding the needs and expectations of the customers before and after providing the products and services Show the slide and then lead them to the 5 stages explaining each one of them Pre relationship stage- Time to do some home work as in market analysis, financial status of the customers in the particular location, how many of them are eligible to go with the product that you are offering Early stage- Now that you know that your potential customers in the particular location its time to approach them for the first time and explain your product Development stage- some customers after you have interacted with them for the first time may be interested, some not interested, some may be interested but not eligible Long term stage- Is the stage where you interact with the existing customers checking if they are satisfied on with the products/ services to (complaint retain loyal management) focusing customer retention strategies

customers(safe guard) Final stage- Is the stage where the number of interactions with the bank and the customers gets institutionalized/ no more transactions with the bank (concept of satisfied/ dissatisfied customers If satisfied The customer goes with other products offered by the bank and the

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cycle continues If the customer unhappy with the services- no more transactions or interactions with the bank reaches the final stage Customer Identification Probe- Who is a customer according to you? Is he the one who is interested in your products & services? Is he an existing customer? Is he a potential customer you have met for the first time? Elicit response from the participants and then explain the definition of a customer Ask- how would you identify different types of customers? How do we categories them? Explain the learning objective of the session To classify the types of customer based on 1. Different communication styles of the customers 2. Different personalities of the customers The group has to portray the recommendations to handle this type of customer Who is a customer?

Case study 1: Go through the situation, discuss with your team and answer the following questions: Sheetals mother wants to buy a present for her niece Mandira, who will be getting married in a weeks time. Sheetals mother gives Sheetal Rs. 1,500 and asks her to buy an electric rice cooker for Mandira. Sheetal finds a nice one and gets it gift wrapped. The gift of course is give to Mandira on her wedding day.

1. (a)

Who

is

the

owner

of

the

electric

rice

cooker

and

why?

_______________________________________________________________________________ _____________________________________________________________ 1. (b) Whom should the electric rice cooker company treat as the customer and why? ______________________________________________________________________

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______________________________________________________________________

After participants complete the exercise ask a representative from each team to present the groups opinion. After this summarize covering the following points:

The owner of the rice cooker is the person who finally keeps it. In this case it is Mandira. All three are customers in their own way:

The person who pays for the product at the counter Sheetal The person who induced/influenced the buying Sheetals mother The person who is the consumer of the product Mandira
A customer is the one who directly or indirectly buys or uses a product or a service. Good and bad customer service: Create interest as follows: All of us have bought goods or services at some point of time or the other. We are all consumers and thus customers of some goods or services. Activity: I am a customer of the following products: I am a customer of the following services:

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Activity:

Write a good customer service experience you had:


__________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ _____________________________________

Write a bad customer service experience you had:


__________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ ______________________________________________ _________________________________________________________________________

As customers we have certain expectations If those expectations are met we ignore the service If what we get goes below our expectations we complain If what we get goes beyond our expectations we are happy and remain loyal A companys business thus depends on its customers. If the customer is happy with the product or service they buy more and may also refer more customers.

Case study 2: Chocolate chips is a cake shop. They make delicious cakes. Until recently, at any given point of time you would find that the place was full. There are still a lot of people going there but business seems to be decreasing everyday. Go through the following events that occurred at Chocolate Chips and find the reason for decrease in business.

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1. The chief pastry chef took ill for 2 days and could not overlook the production 2. One customer had a big order and packed almost all pastries available in the shop and many others had to return disappointed 3. The place was declared a no parking zone 4. The shop has had a change in policies and have introduced a token system. Where customers decide what they want, pay cash at the cashiers desk, collect coupons, present them at the counters, where the pastries are packed or served. The management thought this will help them attend to customers needs faster as there is no interaction between counter staff and customers. Make a note of your points here: __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________

After participants finish the discussion, explain as follows: Customers decide the business of any organization. Be it a cake shop or a telephone service provider. In the case we just discussed, all factors in some way contributed to the depression in business. Customers can be very sensitive to what they get and how they are treated. Finally it amounts to is it worth the price I pay for it? Notice this: Increase in price + no change in attitude/ quality = Decreased business Increase in price + freebies = business remains constant Decrease in price + bad attitude = constancy or decrease in business Decrease in price + good attitude = slight increase in business Decrease in price + freebies + good attitude = remarkable increase in business

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Constant price + Freebies + good attitude = increase in business Constant price + great attitude = increase in business

A customer is the lifeblood of any business. All businesses have to ensure that the customer is kept happy all the time One happy customer may either return or refer more customers One unhappy customer will discourage many others and either stop more people from buying the product or service or may even reduce the number of existing customers It is therefore important for us to understand our customers and strive at exceeding their expectations Explain that in the next few sessions we would understand different types of customers, and learn ways of dealing with them in order to exceed their expectations thus improve business of the organization. Exercise: In this section I learnt __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ Following this session my action plan is __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________

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Types of customers:

Types of customers: Ask participants to complete the following exercise: Exercise: List at least 5 types of customers you think you could come across in a business: 1. ____________________________________ 2. ____________________________________ 3. ____________________________________ 4. ____________________________________ 5. ____________________________________

Exercise: How would you react in the following situations?

1. You buy 3 packets of noodles from the grocery store and return home to find that the store keeper has given you only 2 packets. ____________________________________________________________________ 2. You discover that you were supposed to have got a boomerang free with your box of expensive cookies and that you have not been given it ____________________________________________________________________ 3. You have taken a phone connection only for local calls and you have been billed Rs. 300 worth of STD and ISD calls which you never made

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____________________________________________________________________ 4. You discover that your credit card has been misused and the company does not waiver the amount of Rs 20,000 that has been wrongly charged to your account. ____________________________________________________________________ 5. You forget to pay your telephone bill and your connection gets terminated ____________________________________________________________________

Customer types:

Customers are of different types. We could classify them based on their attitudes and personalities: Based on attitudes: First ask participants how they would classify customers based on their attitudes. After participants respond, explain as following using the slide: Aggressive: people displaying such behavior seem to get triggered at the slightest opportunity. They display an behavior of enmity or eagerness to fight or argue for the silliest of reasons. Passive: these seem to be lacking in energy or will. They accept anything that is said to them. they are peacefully resistant in response to injustice and will not express their resentment or discomfort correctly. Assertive: these show their true feelings with confidence. They know what they want and will ask for it without hurting the other person. They are aggressive about their needs but put it across in a non aggressive but bold manner.

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Based on personalities: First ask participants how they would classify customers based on their personalities. After participants respond, explain as following using the slide: Knowledgeable: these customers could be highly educated or could have an extensive information or understanding of the subject. They will be alert and fully informed about the product/ service/ procedures involved. They seem to be very aware of their situation and the solutions that can be provided through a thorough study or a prior experience of being in the situation. Ignorant: quite contrary to the knowledgeable customers, the ignorant ones lack in the knowledge of the subject or may in general be uneducated in the specific field. They could be unaware because of lack of relevant information or knowledge. Nervous: such customers may seem to be very uneasy and low in confidence. They rely a lot on the customer service personnel to assist them with their concern. They show anxiety and could get agitated with small things. Irate: These kinds of people are very non-trusting and display an angry exterior. They get irritated and show extreme anger. They sound loud and may sometimes get abusive as well as they cannot control their anger. Complaining: These kinds of customers express dissatisfaction, discontent, displeasure, or unhappiness by complaining about or criticizing some part of the product or the service all the time. Fussy: This kind of customer can be especially irritating as they can find faults with the smallest detail. They could also be identified by their complaining characteristics.

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Hysterical / melodramatic: This kind of customer could display excessive or uncontrollable emotions. They could display their hysteria in their painful voice. They could over do their emotions like in a stage performance. Celebrity: these are known personalities. They expect to be recognized and treated with more importance than the others. Not all of them are humble. They expect special treatment, and discounts. They often give you the dont you know who I am? line. After explaining the above, also explain as follows: Customers may be of different personalities or may show different behaviors. They do this because of a previous experience, the situation they are in or because of their natural selves. We too as customers behave in one of these manners. What is important is not the kind of customer you are but how well you are handled. We need to understand the different types of customers so that we are prepared to face them and so that we face them with the right attitude so as to deliver exceptional customer service.

Understanding customers and handling them: Despite how people would react, they would do so in a specific manner based on their personalities. The aggressive people would make a rude comment and sound loud and angry. There passive people would try to make their point in different was such as not return to the shop at all, or perhaps tell a lot of people not to ever go to that store. Or perhaps very politely make their point at the store. Passive people could also get hysterical and melodramatic. While the assertive ones may sound reasonable they could get quite aggressive and irate if not handled properly. Handling customers:

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As we learnt so far different customers have different needs and different personalities. In order to retain customers we need to be able to cater to the varied needs and personalities of our customers.

We must learn to handle customers because of the following reasons: 1. When we face the situation, we will be well prepared to judge the customers personality and decide in what manner we must react to handle them efficiently thus avoid making the situation worse. 2. Customers are the lifeblood of any organization. To retain customers and keep them happy one has to know how to handle them in different circumstances. 3. In order to avoid mistakes from happening, we must know what makes a customer react in a particular manner. And when the customer reacts in a particular manner we should be able to empathize with the customer and target the root cause and handle that so that the customer feels that the service was exemplary and not just a good effort. Handling different types of customers efficiently: Ask participants to do the following activity: Type of Reason for behavior Has good about Manner of handling

customer Knowledgeabl e

product Respect customers knowledge of and is subject. the Complement customer on his/her

knowledge confident

solution to the problem. knowledge of the subject. Has approached you only Accept suggestion and advice if a because he/she does not better solution can be achieved. have the authority to do Not doing so may irritate customer anything about it and things may become more himself/herself difficult to handle
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Ignorant

Has no knowledge what so Be helpful. ever about the product or Understand and respect the fact service. Relies entirely on that customer does not have as the CSR fir assistance much knowledge. Be patient and educate customer at every step about what you are doing to assist Neverevertreat the customer as dumb weak Speak politely. Talk to customer respectfully concern with care,

Nervous

May

have

personality.

Must have gone through Be patient with customer an experience which will Resolve have consequences ex: constantly not made payment etc. educating customer

about how to avoid situation Reassure customer that things will be okay

Irate

Must have had one or a Listen to customer until customer series of bad experiences has let off all steam. which according to the Apologize ownership. root cause of the problem and resolve step by step have said Be cautious with choice of words choose solution Ensure customer is satisfied with resolution before ending the conversation. politely and take customer is unacceptable. the limits CSR must

Must have been pushed to Recognize

something that has pushed Give customer options and allow to customer to anger

Complaining

Must

have

had

bad Hear the customer out. Make notes of all complaints and summarize complaints

experiences in the past recurred

Bad experience must have Apologize

Does not feel satisfied with Target one complaint at a time and
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the efforts put in him/her for granted

inform customer on how resolution Ensure customer satisfaction at the end of the conversation.

Feels that the CSR takes is arrived at.

Fussy

Believes in high standards Needs value for money

Do not compromise service quality at any cost. Remind customer of the privileges he/she has got and ensure you thank him/her for giving you the opportunity to serve Treat them with importance Check for customer satisfaction at every step

Hysterical

Does not know how to Be patient. control emotions Be empathetic remind customer and make notes. Let Feels taken advantage of that you understand every time something goes Listen wrong customer let off steam. Gain trust of the customer while speaking to him/her Assure service customer of continued

Celebrity

Has always got attention

Treat with respect as you would

Has been treated as a any other customer special person everywhere Do not try to invade privacy by and is used to it level people personal higher from to being inquisitive avoid you would to any other customer getting Follow prescribed procedure Like to keep themselves a Give the best customer serviceas

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FINAL ASSESSMENT

1. Our attitude is the outcome of our_________________


a) behavior b) Mindset c) Customer b) Boss

2. Understanding the problems of our customers is called as _________________


a) Sympathy b) Listening c) Empathy d) positive attitude

3. The A in LAMA methodology stands for _____________


a) Attention b) Acquire c) Attitude d) Acknowledge

4. What do you understand by passive customer feedback


a) Never call customers b) Waiting for customers feedback c) Feedback given to friends d) feedback give by email

5. The purpose of complaint recovery is __________________


a) Solve customer complaints and communicating back to them b) Recover faculty goods from customer c) Recover losses from customers d) forwarding complain to higher management

6. _______________ is one of the most important factor for customer loyalty


a) Customer satisfaction b) Customer Value creation
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c) Profit d) Volume of business

7. The organization should maintain _______________________ for growth and


development a) Suppliers b) Time c) Relationship networks d) Profits

8. What do you mean by acting as a customer advocate?


a) Guide the customer b) Fight for customer rights c) Deal with consumer laws d) Make profits for your company

9. What does the following statement signify CUSTOMERS DONT TALK TO


THE COMPANY," THEY TALK TO YOU? a) They are not interested in the company b) You are the face of your company c) You have good communication skills d) You know more than your managers 10. How can one identify people with good Interpersonal skills a) Giving free gifts b) Good personality c) Genuine concern for others d) Selling quality products

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COMPLAINTS

C&R CYCLE
Appeal Complaint filing Internal action Response to complaina nt

Resolution

Complaint investigatio n

1. Internal capacity and scope: Necessary resources are allocated Possible effects are considered Written policy 2. Complaint filing:

Information on C&R is user-friendly and accessible.


Procedure is accessible and safe to use Non-retaliation and confidentiality are guaranteed Complaint recorded and filed into a database 3. Processing the complaint:

Impartial and independent process


Clear time frames for the investigation

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Complaints processed by qualified individuals Complainant informed of procedures/appeal

4. Response: Clear decision on the type of response and remedy offered; ensure consistency Ensure that complainant receives a clear response and acknowledges the receipt Complaints feed into learning process Future planning takes into account necessary corrections COMPLAINING When making your complaint, remember to: Be polite but firm. You may feel angry, but an effective complaint is based how well one can present themselves. Explain your problem, keep to the facts and know your rights. Tell them what you want them to do for your complaint to be resolved. For example, specify whether you are looking for a replacement. Remember that while these are only all options. Sarcasm or rudeness wont help your cause. How one presents one self as a reasonable person rather than an unreasonable person. Focus on the action you want the supplier to take rather than on your anger or disappointment. A repair, a refund, completion of an unfinished service, or simply and apology. The law does not specify who chooses the form of redress. Therefore it is up to you to negotiate this with the supplier. USEFUL LANGUAGE

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MAKING THE COMPLAINT Im ringing to complain about..

INSISTING Im afraid that is not good enough

EXPLAINING THE PROBLEM The MP3 player doesnt work

THREATENING Im afraid unless the product is replaced Ill have to If you dont replace the product, Ill have to report to.

Im sorry, but Im not satisfied with, Unfortunately, there is a problem with Id like to know why, .. I must insist Could I speak to your superior? Could you put me through to the person in charge? There seems to be a problem with... We havent received the... Im is missing. DEALING WITH COMPLAINTS SHOWING UNDERSTANDING Im sorry to hear that Mmmmm, I see what you mean

MAKING EXCUSES Im afraid I cant help you there since it is not our fault

Im sorry about the delay/problem, I can see what the matter is.. Its not our policy to replace items.. Im afraid it is not quite right

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GETTING THE FACTS Could you give me some details, please? What happens to your MP3 player exactly?

PROMISING ACTION Ok, Ill look into it straight away I promise you Ill check the details and get back to you.

Whats the problem exactly? What seems to be the problem? Could you explain exactly what the problem is ? I promise you Ill check the details and get back to you. What Ill do is And Ill get back to you shortly. As soon as Ive. Ill call you back.

FINAL ASSESSMENT

1. Explain the C&R cycle of complaints. 2. What should you remember while making complaints? 3. Give examples of useful language that can be used while making complaints 4. How do you deal with complaints?

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NEGOTIATION SKILLS
TOPICS AT A GLANCE NEGOTIATION CHARACTERISTICS OF NEGOTIATION TYPES OF NEGOTIATION PHASES OF NEGOTIATION PREPARATION OBJECTIVES CONCESSIONS OPENING THE NEGOTIATION BARGAIN AND BUILD A SOLUTION CLOSING PITFALLS QUALITIES OF EFFECTIVE NEGOTIATORS

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COMPARITIVE OF DISTRIBUTIVE AND INTEGRATED NEGOTIATION ACTIVITY

Training Objectives: Evaluate participant's current negotiation skills Demonstrate behaviors characteristics of successful negotiators Find creative new ways to approach problems Assess how participants deal with conflict Explore boundary role concept and its implications Negotiation: Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution. Negotiation occurs in business, non-profit organizations, government branches, legal proceedings, among nations and in personal situations such as marriage, divorce, parenting, and everyday life. The study of the subject is called negotiation theory. Those who work in negotiation professionally are called negotiators. Professional negotiators are often specialized, such as union negotiators, brokers. Characteristics of a negotiation: Bear in mind that each person in a negotiation is there because they want a solution. Not everyone wants the same solution, which is why a negotiation takes place. leverage buyout negotiators, peace negotiators, hostage negotiators, or may work under other titles, such as diplomats, legislators, or

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History can be a strong component not only history between the two people but between departments, directorates or teams. Remember, history is not always correct and if you believe it is getting in the way then bring it to the surface. A preference to search for a solution rather than have a fight Depends on: Personalities of the people involved History that exists between them The persuasive ability of each

Two types of negotiation Negotiation is a complex communication process. most common types of negotiation. lot of detail on this point. Co-operative = win/win Empathetic partnership agreements Adversarial = win/lose maximise own gain and others loss unstable agreements Phases of Negotiation: Preparation Opening Bargaining Closing Preparation: Things to think about before starting the conversation. This slide indicates the two

You really have to strive to want a co-

operative negotiation. The note that accompanies this presentation goes into a

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These should mould your own strategy on entering the negotiation. Do not let them become too fixed or rigid, or you may not achieve your goal and appear a dictator in embryo. The amount of time you set aside for this self reflection will always vary. You may also need to take advice from the chief executive, non-medical managers and medical colleagues.

Objectives: This should help crystallise precisely what you want to achieve. What exactly do I wish to achieve? Which of my objectives: must I achieve? do I intend to achieve? would I like to achieve? What other options are acceptable to me? BATNA How might this fit with what the client wants? Concessions: This is how you think through the bargaining process that you will use. Agreements are usually reached by concessions being given and received. Concessions have two elements: cost and value. It is best to give away a concession with little cost to you but high value to the consultant. Know your limits, and the limits of your authority. You cannot obligate the

employer to a course of events that runs counter to the health boards direction. You may have a limit on the financial deals you can strike.

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Once you have reached any of your limits and lost bargaining power you have to do the most difficult thing in a negotiation stop it. Walk away. Find a good reason to do so. It is worse to agree a concession which then gets removed by a higher authority than not to agree it in the first instance. Your own pride and status takes a big fall. What is the best deal I can realistically get? What concessions do I have; their cost to me and value to the consultant? What is the limit of my authority? When should I walk away; and at what cost to the outcome? (FEP)

Opening the negotiation: Establish the issues Gather information Successful negotiators have thought out the way ahead. They are well prepared, self-confident and structure the negotiation so that they remain in control. Establish the issues: Agree an agenda what needs to be discussed and agreed what are the major issues what are the timescales

Keep everything general at the beginning Gain commitment early on, but only once all the negotiable items are identified Gather information: You will already have gathered information, but you may now find out more. This is a two way sharing of information. Now it is about listening and probing to find

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out as much as you can, first hand. You may find out items you didnt expect, so you are advised to go through this step. Bargain and build a solution: In a negotiation you can start from a defensible extreme and give ground. You may gain more than you expected to. If so, do not be surprised and dont ever let it be known that you have gained more. If an impasse looks likely then seek alternative solutions. Start should be ambitious but defensible Bargain ask questions and seek alternatives

Concessions traded dont give away for free

Agreement reached Closing stages: The closing stages are vital. Appearing over eager is bad in closing deals think about the extra concessions you have gained from car salesmen. You may want to do it deliberately in order to give away a concession to prevent others you can see coming over the horizon, but only do so if you are experienced. Vital to overall success Do not be over eager as may make the client hold back for more concessions Beware one sided concessions at end of negotiation - the majority of concessions are given or traded in last 5% of total time. Review position to date and agree it Record the details Define and timetable outstanding issues

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Agree with the consultant that you both have the same interpretation It is vitally important that you both record and agree the position at the end. It is very easy to remember later. Doesnt need to be just factual emotions and expectations can be recorded. Some pitfalls: Failing to prepare effectively Being intimidated by status Forgetting the client has things to gain Making assumptions about what the client wants Talking too much and failing to listen effectively Giving away concessions for nothing Conceding on important issues too quickly Assuming deadlock means agreement is not possible Being inflexible Taking things personally Last point is very important. A good note to end on: These can be difficult discussions but the anger or other emotions are being directed at the post you hold, not at you as an individual. Qualities of effective negotiators: Listen more than talk Build trust / relationship Use empathy Communicate honestly and openly Understand their needs and expectation Ask right questions Look for occasion when to say YES Make I statement and not YOU

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Invite opponents criticism (Be Flexible. Use pauses (to summarize). Keep emotions away.) Distributive / Win Lose: One side win and one side loses False promises and misinformation Poor communication Fixed resources, one get more Opposing interest Maximizing ones own interests Manipulating and forcing strategies Claiming value destroy values and make relationship bitter

Integrated / Win Win: Both sides win Ideas are verbalized, group pay attention to each other Effective communication Variable resources to be divided Similar interest Maximizing joint interests Co-operating and sharing strategies Creating value create values and make relationship stronger Tips for Win Win negotiation: Keep positive attitude, orient yourself to win-win approach Be clear on strategy, what is important and why Know your BATNA and FEP Separate People from problem

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Focus on interest, not on positions Create options for mutual gains Create possibilities Pay attention to flow of negotiation Communicate clearly and listen carefully Take intangibles into account Activity 1 Bongala You represent Bongoland, a remote and isolated community. Below is a list of commodities you produce and need in order to have a balanced economy Due to your geographic location, you have no option but to negotiate with your only near neighbour, Twitala, to obtain the commodities you need, and to offload those of which you have a surplus.

Commodity Copper Timber Brainpower Insurance Shipping Bricks Oil* Electricity Cereals Meat*

Available 10 20 15 4 12 6 5 3 16 10

Needed 12 7 9 10 10 14 11 9 3 16

Your success will be measured in the following way. You will be awarded: 1 point for each unit needed of a commodity gained.
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1 point for each unit surplus of a commodity offloaded. 2 bonus points for each commodity when your needs are balanced by availability. 3 points for each unit obtained of the most important commodities marked with an asterisk. Minus 1 point for each minute or part thereof of negotiating time. Negotiating starts when the umpire signals, and ends when both parties have initialled a note of the agreed exchange quantities. Bongala You represent Twitala, a remote and isolated community. Below is a list of commodities you produce and need in order to have a balanced economy Due to your geographic location, you have no option but to negotiate with your only near neighbour, Bongoland, to obtain the commodities you need, and to offload those of which you have a surplus. Commodity Copper Timber Brainpower* Insurance Shipping Bricks Oil Electricity* Cereals Meat Available 10 6 9 16 12 20 3 5 8 12 Needed 12 12 15 3 10 7 9 11 16 6

Your success will be measured in the following way. You will be awarded: 1 point for each unit needed of a commodity gained.

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1 point for each unit surplus of a commodity offloaded. 2 bonus points for each commodity when your needs are balanced by availability. 3 points for each unit obtained of the most important commodities marked with an asterisk. Minus 1 point for each minute or part thereof of negotiating time. Negotiating starts when the umpire signals, and ends when both parties have initialled a note of the agreed exchange quantities. According to the group points, see how well you have negotiated. Faculty should ensure that the Activities cover Planning negotiation Creative thinking Negotiating styles Assertiveness Questioning Techniques Handling difficult people Sales negotiation Trainer takes feedback from both the groups. Activity 2 Divide the loot A conflict management and negotiation skills activity This is what we do: 1. Form into two groups, physically apart. One group is to take on the role of the management negotiation team, the other represents employees. 2. Each individual within a group pays a the same amount of their own money to the kitty. A different amount is taken from each group.

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It is very important that each group does not at any time know value of the investment made by the other.

the

3. The activity leader pays into the kitty a third element of his own money the value of this is known only to him. 4. Each group is then informed of the total value of the kitty. Group members know their own input, and the total, but not the value of the investment made by the other group or the activity leader. 5. Separately, the two groups then determine the share of the total they feel should by rights, come to them, and a rationale that they can use to justify that split. After 10 minutes of the above preparation, the two groups come together to commence negotiation, and to agree on a split of the kitty. 6. The two teams meet, adjourn, and work on a split that is agreeable to both parties. 7. When agreement has been reached, we will debrief the learning. Remember to record your learning as you work. What are the things you will keep in mind while Negotiating?

FINAL ASSESSMENT

1. 2. 3. 4.

Define Negotiation. Explain the characteristics of Negotiation What are the phases of Negotiation? Explain the process of Negotiation. Mention a few pitfalls of Negotiation. Write 5 qualities of effective Negotiators.

5.

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BIBLIOGRAPHY & ADDITIONAL READINGS http://www.customerexpressions.com Handling complaints by Angelena Boden

Negotiation Basics: Concepts, Skills and Exercises by Ralph A. Johnson Negotiation Skills by Tim Hindle

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