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Chapter 13

Chapter 13. Building Partnering Relationships. The Value Of Customers. Maintaining strong relationships with the customer is important (Existing accounts contribute a large portion of sales)

christophe-alden
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Chapter 13

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  1. Chapter 13 Building Partnering Relationships

  2. The Value Of Customers • Maintaining strong relationships with the customer is important (Existing accounts contribute a large portion of sales) • Selling to satisfied customers not only costs less than acquiring new customers but also is easier • Customers are worth more in terms of revenue than some salespeople recognize • CVS – Customer lifetime value – combined total of all future sales (typically discounted back into current dollars).

  3. Value of Customers Consultative customer-oriented sales approach – shown to improve customer retention & profitability Another study – finds average company loses 20-50% of its customer base every year, and the rate is increasing!

  4. Relationships and Selling Relationship marketing – many definitions For selling, it means creating the type of relationship that best suits a customer’s need Behavioral loyalty – purchasing same product from same vendor over time (habit) Attitudinal loyalty – emotional attachment to a product

  5. Market exchanges Solo exchange – one time purchase Example: car trouble out of town Functional relationships – long term relationship characterized by behavioral loyalty – (habit or routine)

  6. Partnerships Relational Partnerships – close personal bond involved – know small details can be worked out Strategic Partnerships – both make significant investments to improve profitability

  7. Managing Relationships Some companies want a market exchange, some want a functional relationship, and others want a strategic partnership. Size, access & image, & access to innovation help drive partnerships3

  8. Choosing Right Relationships Size – example: Keyser Group & McDonalds – worked for decades -P.348 OR J.C. Penney and Martha Stewart Access and Image – SRI (software company)– can provide access to very specific markets – P. 350 Access to Innovation – Lead users face & resolve needs months/years ahead of others -HEB & (RFID)

  9. Phases of Relationship Development Awareness Exploration Expansion Commitment Dissolution Note: Research shows the middle three stages are the most important!

  10. Characteristics of Successful Partnerships Mutual trust Dependability Competence Customer Orientation Honesty Likability Open Communication & Common Goals

  11. Successful Partnerships • Commitment to Mutual Gain • Organizational Support • Structure & Culture • Training • Rewards

  12. Selling Yourself Vignette Deeper relationship – Student Ambassadors!

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