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The Importance of Knowing Your Products & Services

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  • 0:04 Knowing Products and Services
  • 1:40 Not Knowing
  • 2:15 Value of Knowing
  • 3:57 Lesson Summary
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Lesson Transcript
Instructor: Allison Tanner
This lesson describes the importance of knowing your products and services. It also explains the value that knowing your products and services can add to the customer experience.

Knowing Products and Services

Oftentimes when we want to buy new products or services, we'll have a question about their value to us. As consumers, we expect that the person selling us products or services will have knowledge about them.

Knowing your products and services means that the people selling the products or services have a sound understanding and knowledge of what it is that they're offering and what value it has for the customers. However, this isn't always the case. Let's consider what might happen when someone doesn't know the products or services that they're selling.

Imagine that John has been saving up for a 60-inch flat screen TV for months, and he has prepared a budget of $1,200. Having purchased from TV Station before, he decides this will be the best place to go. Mary is his saleswoman for the day, and she is ready to help John find the perfect TV. After John explains that he wants a TV that is 60-inches, with good clarity, and within $1,200, Mary shows him two options. TV #1 fits all of his spoken requirements. TV #2 is a bit smaller, but Mary says it is better quality.

Curious, John asks why it is better, and Mary simply states, 'Because it is clearer.' Annoyed, John asks, 'Why is it clearer?' Mary, not knowing her products says, 'It is clearer because it is a better TV. I recommend you get this one.' No longer annoyed, but angry, John leaves the store never to return. When someone doesn't understand his or her products or services, it can lead to frustrated customers. More importantly, it can cause a business to lose a potential sale.

Not Knowing

When you don't know your products or services, there can be other consequences as well. First, is poor customer service. Let's go back to our example. John left TV Station angry. Not only is the store losing out on a sale, but John now feels like the store is incompetent, and doesn't value its customers. Additionally, when a customer doesn't understand why a company values a product or service, the customer isn't going to value the product or service. Because Mary couldn't explain why one TV was better than the other, it appeared as if neither TV was a good value, and John left upset.

Value of Knowing

When someone doesn't know the products or services they are selling, it can be damaging to the business. But imagine that Annie, TV Station's top salesperson, had been able to tell John about the internal workings of the smaller TV and how the technology provided a clearer image that the larger TV wasn't capable of producing. By giving specific details of benefits of the smaller TV, Annie was able to keep the sale and provide great customer service, which is the process of providing for the needs of your customer during and after the sales process.

Knowing her products allowed Annie to do a few things: build trust, create value for the product or service, and ensure customer satisfaction. Let's look at each of these in a bit more detail.

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