RELATIONSHIP MARKETING

BY

Professor Elaine Estervig Beaubien

Tenured faculty, School of Business

Edgewood College

CEO,

Management Training Seminars

6520 York Heights

Waterloo, WI 53594

www.elainetrain.com

920-478-2811

elainetrain@aol.com

WHY HAS IT BECOME IMPORTANT NOW?

“If we don’t take care of our customers, someone else will.”  Today’s marketplace is more consumer driven than ever before.  Businesses in Dane County are not only competing with the businesses down the street, they are in direct competition with “www.theirenterprise.com”  Consumers are savvy and their expectations are high.  They want variety, selection, and service.  They even want to be involved in the pricing of their product as evidenced by the popularity of WEB sites like priceline.com.  They can find specialty items, obscure treasures, home delivery and at the exact price they want to pay.  As a bonus, they don’t even have to leave their home or business.

Relationship marketing is not a new concept.  It is actually very old.  We are going back to “Main Street” or “downtown” marketing.  You know, when you would walk in to the local Ben Franklin store and the Meyer Sisters who ran it would ask about your Mom and Dad and your brother’s wrestling match while selling you candy and paper. You would go into Mrs. Sullivan’s dress shop and she pulled out a dress she had been saving for you because when it came in she knew it would look great on you.  You had a relationship with the people who were marketing to you and it created the equivalent of Brand Loyalty. 

How can businesses compete?  By developing a relationship.  When you are married or in a committed relationship, you (hopefully) don’t go looking for other relationships.  That is particularly true when you are happy, satisfied and content. You want to “marry” your customer.  This takes courtship, commitment, communication and constant attention.

SOME MAIN STRATEGIES FOR RELATIONSHIP MARKETING?

Think of any good relationship between people and the answer is obvious.

TREAT PEOPLE LIKE THEY WANT TO BE TREATED

It used to be “treat people like you want to be treated,” but no more.  For example, you may like a bisque, efficient, no-nonsense approach to buying a car.  You want the facts, just the facts.  On the other hand, your customer may be feeling very insecure because they have never spent this kind of money before in their lives and they need a great deal of reassurance, hand holding, patience and positive reinforcement.  You may begin to feel like a therapist, listening, patiently reassuring them and dealing with their indecision.  You must treat people like THEY want to be treated to formulate a successful relationship.

LISTEN, LISTEN, LISTEN

Your customers will tell you what their expectations are; how to solve their problems; what will serve them best and what you can do for them.  Listen to them.  Do not approach a customer with preconceived ideas.  Approach them with a question, and then let them talk.

Listening is a skill with a double purpose. It not only is the method for gathering information, it is a way to make the customer feel important.  Giving someone your undivided attention elevates their feeling of self worth, gives them a sense that they are the center of your enterprise and increases their level of satisfaction.  This is a humanizing, validating event for your clientele and they will soon become addicted to the feeling, solidifying your relationship.

BUILD TRUST

The most fundamental prerequisite to all relationships is trust.  Never exaggerate, prevaricate, or deceive. Never make promises you can’t keep.  Your reputation and credibility are a critical component of good business.

ADD VALUE

Delight your customers by giving them what you promised and what they paid for, and then, a little more.  I see mugs at meetings that bear the logo of local businesses and T-shirts with corporate names.  These are walking billboards for your company.  Come in early on a deadline, give them their tenth product free, put something extra in their order, remember their birthday, anything that will add value to your already excellent product or service.

ADD CONVENIENCE TO YOUR PRODUCT OR SERVICE

In the 60's we spent time to save money...now we spend money to save time.  Delivery, communication, responsiveness, service that is timely can be a critical advantage in the marketplace.  Examples include: drive-through service, 800 and 888 numbers, ATM’s instant oil changes with TV’s and coffee in the waiting rooms, pre-approved loans, overnight delivery, replacing a windshield at your workplace. Use your next organizational meeting to brainstorm ways of adding convenience to your current product or service.

TRAIN, TRAIN, TRAIN YOUR TEAM AND YOUR CUSTOMERS

The purpose of training is two-fold.  First of all, you want knowledgeable, competent people using your product or service to its full advantage.  The second purpose is to communicate the passion for the unique nature of your product or service.  Excitement is contagious and part of your training should be the transfer of commitment.  You want your customers to come to you first if there is a problem.  You will then have another opportunity to seal the bond between you.

INVEST IN RELATIONSHIP MARKETING

Each marketing tool has a price tag.  While this may at first glance look like an expense, consider it an investment.  It is far less expensive to keep a customer than it is to find a new one.  Spend more money on your current customers and they will sell your product or service for you.  They will become part of your uncompensated work force.  Word of mouth is a powerful marketing tool.   At least 30% or your marketing budget should be spent directly on your current customers. Never take your customer for granted.