Building Partnering Relationships Relationships and Selling

Relationship marketing
reflects companies attempts to develop stronger relationships with their customers

Customer lifetime value (CLV)

the combined total of all future sales

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Relationships and Selling

Behavioral loyalty
refers to the purchase of the same product from the same vendor over time (automatic).

Attitudinal loyalty
an emotional attachment to a brand, company or salesperson.

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Market Exchanges-Two Types

Solo exchanges
No assurance of any future business Both parties focus on their own self interest

Functional relationships
Long-term market exchanges Behavior loyalty Previous purchase definitely influences next purchase
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Partnerships-Two Types
Relational partnerships
Buyer and seller have a close personal relationship Buyer and seller work together to solve problems Trust
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Strategic partnerships
Long-term relationships Make significant investments to improve the profitability of both parties = $$$!

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Types of Relationships between Buyers and Sellers

Exhibit 13.2

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Selling in Market Exchanges and Long-Term Relationships

Making contact Closing the sale Following through Initiating the relationship Developing the relationship Enhancing the relationship

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They Choose the Right Relationship!!

One MAJOR factor that influences a salespersons success is the type of relationship the customer desires Other factors are size of the account, access and image in the market, and access to technology.

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Phases of Relationship Development & Maintenance

Awareness

Dissolution

Exploration

Commitment
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Expansion
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Foundations of Successful & Lasting Relationships

Exhibit 13.4

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Elements of Mutual Trust

Dependability
Buyers perception that the salesperson and the product and company s/he represents will live up to promises made

Competence
Demonstrated knowledge of the customer, the product, the industry and the competition

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Elements of Mutual Trust

Customer orientation
Degree to which salesperson puts customer needs first

Honesty
Truthfulness, sincerity, being candid

Likeability
Behaving in a friendly manner and finding a common ground between buyer and seller
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Open Communication
More building block for building successful relationships: Listen, listen, listen!! Salespeople should encourage buyers to speak up Be aware of cultural differences

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Common Goals
Partners should focus on maximizing opportunities rather than arguing about who will benefit the most from the relationship Helps sustain the partnership Measurable goals are critical

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Characteristics of Successful Partnerships

Commitment to mutual gain
Mutual investment

Organizational support
Structure and culture Training Rewards

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Stages of Partnerships
Exhibit 14.1VERY IMPORTANT!!

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CRM Strategies
Customer Acquisition Gain the greatest number of new Best customers as early in their lifespan as possible. Customer Retention Retain and expand your business and relationships with your customers through up-selling, cross-selling and servicing. Customer Loyalty Offer programs to ensure that your customers happily buy what you offer only from you. Customer Evangelism Enable loyal customers to become a volunteer sales force. Cost Reduction Reduce costs related to marketing, sales, customer service and support. Improve Productivity Enhance your e-business strategies.