Sunday, November 23, 2008
Levels of Relationship
In this post i will just talk about the levels of relationships that marketers have with their consumers...
TRANSACTIONAL
In this relationship, the goal is purely about the exchange of product; there really is no reason for the seller/marketer to follow up on the consumer. For example, when you go to a farmer's market and buy vegetables, your relationship ends right there.
REACTIVE
In this relationship, the feedback is necessary in the event of a problem with the product. An example would be when you go to the dry cleaners. There is no follow up, they just let you know that if anything is wrong with their services, let them know.
ACCOUNTABLE
Follow up occurs even when there isn't a problem - for example, a salesperson may call you after you purchase something to check whether it met your expectations (no cognitive dissoance...), and ask for suggestions to improve their services before too many customers are lost.
PROACTIVE
In this relationship, the seller continues to contact you long after you have made the purchase in an attempt to assess your CONTINUED satisfaction. this is usually for a more serious purchase like cell phone services or insurance.
PARTNERSHIP
This is the most developed one -- a continuous relationship between seller and customer; in some cases, they may even know you personally, for example - a personal shopper at Macy's or Nordstrom's. They call to notify you of sales, assist you automatically when you walk through the door, and even wonder where you are (call/email/mail) you when you don't use their product/services for a long period of time.
>>All of this is part of RELATIONSHIP MARKETING: creating, maintaining, and enhancing long-term relationships with customers and other stakeholders that result in exchanges of info and other things of mutual value or interest. That is why there are different levels - different sellers/buyers have different relationships because different issues are important to them.
>>Why are these relationships important?
As the level of the relationship increases, or becomes more involved, the cost of losing a customer increases in value as well. If a customer has one bad experience with your product, they will tell everyone they know (Word of Mouth) and you will have lost a real customer and countless potential ones.
>>But it is important to know that PARTNERSHIP cannot and should not be used for every seller/buyer relationship. Similarly, not every product needs such a high level of relationship. It all depends on the NUMBER OF CUSTOMERS and the PROFIT MARGIN if those customers are lost...For example: coca cola (an international company) and which wich (local, Austin) aren't trying to sustain the same number of customers.
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