Products and services are, for the most part, the same. Its characteristics and attributes are parity. Its benefits are the same. Therefore, the relationship that your company, brand, product or service has with your customers is usually your only competitive advantage.
Companies with strong customer relationships are often leaders. This is well documented in many excellent books and articles, so we will not defend the point of view here. But, if this is true, and customer relationship marketing is an ideal strategy to be competitive, then the question is, “How do I do it?”
We are not suggesting that your company become friends with your customers. That is not realistic. But when your customers feel a certain degree of affinity for your company, all other things being equal, they will choose you over the competition. They do it because over time you have delivered more value and this added value has created equity in the relationship.
Courage can be practical, it can be emotional, and it can be both. But if delivered consistently, it creates equity in relationships and turns into competitive isolation. An effective customer relationship marketing strategy can make the difference between a company that performs with the market and one that surpasses it.
The following relationship marketing principles are based on experience creating relationship marketing programs in Europe and the US Keep them in mind when designing 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 traced back to the sales process. Make sure your strategy and tactics are designed to attract heavy category users for the right reasons. Sell your value. Don’t coerce them with an outburst.
2) The most crucial moment is the beginning.
Buying your product or service does not mean they have a relationship with you. Are you 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 fooled, their interest in the category is also high. They are listening to what the competition is saying. Acknowledge them. Let them know, through word and deed, that you value their business. Surprise them with a 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 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 a salesperson trying to do their numbers.
4) Good customers expect to be rewarded
This does not suggest that all clients receive an award. Understand who your best customers are, the 20% of your customers who generate 80% of your revenue, and reward them. Surprise them. Delight them. Turn them into 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 on these relatively small investments, especially compared to the cost of acquiring new customers, is huge.
5) The second most crucial moment is when the relationship is at risk.
Again, this is not for all clients, but for your best clients, 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. Everything that went wrong consumed some equity in the relationship. You need to get it back.
