relationship marketing by derek hendrikz

Establishing Positive & Productive

Customer Relationships

Derek Hendrikz

http://www.derekhendrikz.com/

The pattern of interactions and the mutual

conditioning of behaviors over time between a

company, and a customer, a supplier or

another organization.

A Relationship (in organizational context)…

www.derekhendrikz.com


• Relationship management means attracting,

maintaining and enhancing relationships.

• The objectives of RM are to identify and establish,

maintain and enhance, and, when necessary,

terminate relationships in such a way that the

objectives of all parties involved are met.

• This is done by mutual exchange and fulfillment of

promises.

Relationship Management:



• RM seeks to create a new value for somebody and then share it with such a

person.

• RM recognizes the key role that individuals have in defining the value they wish to

achieve.

• RM businesses are seen to design and align processes, communication,

technology and people in support of customer value.

• RM represents continuous co-operative effort between buyers and sellers.

• RM recognizes the value of customers purchasing lifetimes.

• RM seeks to build a chain of relationships within the organization, to create the

value customers want.

• One of the main principles of RM is to identify the most profitable customers so

that the business can focus on customers appropriate to its strategy.

The Dimensions of Relationship Management



The importance of good Human Relations:

1. It reduces conflict.

2. It assist people in focussing on matters of

influence and not on matters of concern.

3. It stimulates a harmonious working environment.

4. It reduces the time spent on handling difficult

customers and employees.

5. It makes you a nice person to work and be with.



Why should we be aware of our prejudice?

• So that we can understand the point of view and

perceptions of others.

• So that we can deal with conflict in a constructive way.

• So that can be objective in our relationships with others.

• So that we can separate people from problems.



How to change your prejudices:

• Place all assumptions regarding a specific category on ‘ice’.

• Find similarities.

• First seek to understand before making judgment.



Customer Life Cycle

Reach

Acquire

Retain

Loyalty

Convert



Reach: Getting the customers attention

Acquisition: Showing them what you have

to offer

Conversion: Turning them into a paying

customer

Retention & Loyalty: Keeping them as a loyal

customer

In Layman's Terms, the Customer Life Cycle means…



Farming vs. Hunting:

NewCustomers

ExistingCustomers



• The National Transportation Safety Board offers a learning approach .

• The NTSB takes every accident seriously, ensuring that the same incident should never occur again.

• Work that same policy into your business, taking every customer complaint seriously, ensuring that your business will never have to deal with the same complaint twice.

• Use customer complaints to bring about new ideas and ways to improve your product or service.

• Use the same approach for customer compliments too, using compliments as a point of reinforcement for what your company is already doing right.

Pay Attention To Complaints And Compliments



• There isn’t a simpler method for retention…• Ask customers what exactly it is they seek from

your business and how they want it given to them. • Whether you ask them via a printed survey, an

online survey, over the phone, in person, or via email, it is crucial that you just ask them.

• You’d be surprised at the detailed response you’ll receive, sometimes saving you the trouble of spending extra on expensive market research.

• Consider conducting a focus group with your customers.

• With a customer focus group, you have the opportunity to tap into their collective needs and wants and reward them for their time with discounts on their next purchase, or anything that will demonstrate your sincere appreciation.

Just Ask Them!



• Loyalty programs used efficaciously by businesses such as the airlines industry are extremely effective for outstanding customer retention.

• Starbucks is another company that ties customer service in with a loyalty program that keeps its customers coming back for more.

• A variation of a loyalty program can be in the form of offering specialty discounts for customers in your database sent via email.

Up Your Service With A Loyalty Program



• Not every business owner believes that “the customer is always right,” or that the “the customer is king” and they’re quite right to believe so.

• But, in situations where customers are distraught and tend to seek attention through emotional outbursts, it pays to keep calm and take control of the situation by appeasing the customer with a smile and doing everything possible to pander to the customer’s frustrations.

Service With A Smile



o Customers are a savvy lot and they can usually sense a

sales pitch approaching miles away.

o Though they love buying, customers hate to be sold to.

Instead, adopt the approach of being a solution provider,

showing that you sincerely care about their needs.

o Lend a listening ear to your customers and let them

know that you’re not after their wallets, but instead

collaborating with them to help get what they want in a

way that will benefit both parties.

o This approach works almost all the time and is the secret

sauce for high customer retention.

Be A Solution Provider



• Companies are always harping about providing value

to customers, but very few of them actually understand

what it means. Providing value to customers simply

means giving first and receiving second.

• Giving first could be as easy as offering a free email

newsletter filled with juicy tips that other companies

would have charged a premium for.

• It’s a great way of differentiating yourself from your

competitors and at the same time, providing great

value for free to your customers.

Be A Value Provider



• Customers usually become fans of your business when they

remember something remarkable you did for them.

• This usually happens when customers have a problem with

something they bought from you and need to be fixed.

• The easier you make it for them to get it fixed and solve their

problems, the more satisfied customers become.

• It could even be as simple as providing human support within

three rings of a customer calling instead of sending them to

voicemail and a maze of phone menus.

Keep Your Service Memorable



KPI for Customer Retention:

• What priority does your organization place on customer

retention?

• When was the last time your organization measured

customer retention?

• Who in your organization is responsible for your customers?

• Do you tie incentives to customer retention data?

• Do you measure customer retention using industry-

accepted methodologies?

• Does your organization communicate customer retention

rates to all appropriate people? www.derekhendrikz.com


• Lack of "outside the box" thinking

• Fear of change

• Turf battles

• Conflict with team member day jobs

• Lack of management / executive commitment

Reasons why relationships defect…



ownership

trustworthiness

visibility


