Business

Customer Relationship Marketing: Your Only Competitive Insulation

The products and services are, for the most part, the same. Their characteristics and attributes are equal. Their benefits are the same. So the relationship that your company, brand, product or service has with its customers is often its only competitive advantage.

Companies with strong customer relationships are often leaders. This is well documented in many excellent books and articles, so we won’t defend the point here. But if this is true, and customer relationship marketing is an ideal strategy for staying competitive, then the question becomes, “How do I do it?”

We are not suggesting that your company befriend your customers. That’s not realistic. But, when your customers feel a degree of affinity for your company, all other things being equal, they will choose you over the competition. They do this because over time you have delivered more value and this added value created equity in the relationship.

Value can be practical, it can be emotional, and it can be both. But if delivered consistently, it creates equity in the relationship and it becomes competitive isolation. An effective customer relationship marketing strategy can make the difference between a business that meets the market and one that outperforms it.

The following Relationship Marketing Principles are based on experience building relationship marketing programs in Europe and the US. Keep them in mind as you design your relationship marketing strategy.

1) Attract the right customers for the right reasons

Dr. Stephen Epley, founder of Epley Market Research and Consulting, says that 90% of loyalty problems can be attributed to the sales process. Make sure his strategy and tactics are designed to attract category-heavy users for the right reasons. Sell ​​your value. Don’t coerce them with a bribe.

2) The most crucial moment is the beginning

Purchasing your product or service does not mean that they have a relationship with you. Are they open to it? Maybe. You have to earn it? Absolutely. Their interest in your product is high and they are willing to listen, but don’t be disappointed, their interest in the category is also high. They are listening to what the competition is saying. Acknowledge them. Let them know, through words and deeds, that you value their business. Surprise them with value beyond the functional benefits of your product.

3) In established relationships, continually reinforce the purchase decision

Once you’ve established a connection, don’t give up on your efforts. The most important purchase is not the first, it is the second. Reinforce how smart they are to buy your product. Give them every reason to buy from you again. But keep the plaid jacket at home. Talk to them like you’re in a relationship, not like a salesperson trying to run their numbers.

4) Good customers expect to be rewarded

This does not mean that all customers get a prize. Understand who your best customers are, the 20% of your customers who generate 80% of your revenue, and reward them. surprise them. Delight them. Make them customers for life. Make them so happy that they tell their friends and associates what a pleasure it is to do business with you. The ROI of these relatively small investments, especially when compared to the cost of acquiring new customers, is enormous.

5) The second most crucial moment is when the relationship is at risk

Again, this isn’t for every customer, but for your best customers, take the time to really understand what went wrong, and then do something tangible to address their concern. Don’t take the relationship for granted. What went wrong depleted some of the equity in the relationship. You need to get it back.

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