Building Customer Relationships

1
Building Customer Relationships
Chapter
7

• Relationship Marketing
• Relationship Value of Customers
• Customer Profitability Segments
• Relationship Development Strategies
• Relationship Challenges

2
Relationship Marketing

• is a __________ of doing business, a strategic
  _________, that focuses on keeping current
  customers and improving relationships with them
• does not necessarily emphasize acquiring new
  customers
• is usually _________ (for the firm)
• keeping a current customer costs less than
  attracting a new one
• thus, the focus is less on attraction, and more
  on _________ and enhancement of customer
  relationships

3
Figure 7.1Customer Goals of Relationship
Marketing
4
Benefits of Relationship Marketing

• Benefits for _________
• Receipt of greater _____
• Confidence benefits
• trust
• confidence in provider
• reduced anxiety
• Social benefits
• familiarity
• social support
• personal relationships
• Special ________ benefits
• special deals
• price breaks

• Benefits for _______
• Economic benefits
• increased __________
• reduced marketing and administrative costs
• regular revenue stream
• Customer behavior benefits
• strong ____________ endorsements
• customer voluntary performance
• social benefits to other customers
• mentors to other customers
• Human resource management benefits
• easier jobs for employees
• social benefits for employees
• employee retention

5
Figure 7.5 Relationship Development Model
Customer Benefits Confidence benefits Social
benefits Special treatment benefits
Relationship Bonds Financial bonds Social
bonds Customization bonds Structural bonds
Strong Customer Relationship (Loyalty)
____ _______ Provision
Firm Benefits Economic benefits Customer behavior
benefits Human resource management benefits
_________ _______
6
Strategies for Building Relationships

• ____ _______ Provision
• service foundations built upon delivery of
  excellent service
• satisfaction, perceived service quality,
  perceived value
• _________ ________
• customer ________
• switching costs
• set up costs, ______ costs, _______ costs,
  contractual costs
• Relationship Bonds
• financial bonds
• social bonds
• customization bonds
• structural bonds

7
The Customer Is NOT Always Right