|Now we can say that relationship marketing is a long-term partnership between marketers and customers in which both parties collaborate on identifying needs and developing as well as up-dating marketing mixed to satisfy needs. Besides these, in a competitive market, it is not enough to build relationship only with|
Importance of Relationship Marketing
- It maintains log term relationship with key customers.
- It leads to develop loyalty and satisfaction, which in turn increases transactions with the same customers, again and again.
- It supports for long-run business.
- It focuses on customer retention. It can stop customers switching to another brand.
- It results in positive image projection and enhanced brand equity on account of high degree of customer relation, loyalty and customer satisfaction.
Levels of Investment in Customer Relationship Building
|Levels of Investment in Customer Relationship Building|
- Basic marketing: The salesperson simply sells the product.
- Reactive marketing: The salesperson sells the product and encourages the customer to call if he or she has questions, comments or complaints.
- Accountable marketing: The salesperson phones the customer to check whether the product is meeting expectations. The salesperson also asks the customer for any product or service improvement suggestions and any specific disappointments.
- Proactive marketing: The salesperson contacts the customer from time to time with suggestions about improved product uses or new products.
- Partnership marketing: The company works continuously with its large customers to help improve their performance.
Customer Development Process
- Suspects: Most firms start from the pool of suspects. Suspects constitute of everyone who has the possibility of everyone who has the possibility of building the firm’s product or service.
- Prospects: From the pool of suspects the firm identifies customer groups who are mot likely to buy the product or service.
- First time users: They are those who buy a product for the first time. Then, the firm makes its maximum efforts to convert the first time customers into the repeat customers.
- Repeat customers: They are the first time customers who repeatedly buy the product or service. This group has the potential to be become loyal customers if the firm tries to build relationship in absence of the firm’s effort to build the relationship, the repeat customers may switch to competing firm’s product or service. They also move to the ex-customer pool.
- Clients: They are the loyal and satisfied customers who normally buy the firm’s product or service for a longer period of time. Firms need to work closely with clients so that they maintain long-term loyalty.
- Members: They are those clients who join membership programme to take advantage of benefits.
- Advocates: They are those clients who enthusiastically recommend the firm and its products and services to other prospects.
- Partners: The advocates may convert into partners, who work actively with the firm for mutual benefits.