Building an effective relationship with the customer is the most important aspect of marketing. Building an effective relationship would help the organization to understand the needs of the customer in a better way and can help to build long term relationships and bonds. There are four main steps in building relationship process, these steps include :
- Identify who is the prospective customer and who can benefit the organization ,only those customers need to be focused upon.
- Differentiate those customers on the basis of the advantage and what quantity of benefit a particular group of customer will give to the organization.
- Interaction is the most important step where the organization comes to know what the customer is looking for and also will help them to understand the needs of the market and would better serve for them.
- Customize the products and services as per the requirement of the customer to build an effective relationship with them.
The marketer’s emphasis during the first two steps in the ladder, i.e., prospects and customers is customer attraction while emphasis during the subsequent steps are on developing and enhancing the relationships. Repeat purchases are only a precursor of relationships. Greater value is added through the involvement of customers, sharing information and bonding between customers and marketers. The greater the enhancement of the relationship through bonding, the more committed the customer is to the relationship through bonding.
There are four types of bond that can be created with the customers, these include :
- Financial Bonds- Volume and Frequency rewards, Bundle and Cross-selling, and Stable pricing,
- Social Bonds- Personal relationships, continuous relationships and Social Bonds among customers,
- Customization Bonds- Customer intimacy, Mass Customization and Anticipation/ Innovation,
- Structural Bonds- Integrated information systems, Joint Investments, and Shared Processes and Equipment.
There are many reasons behind why do customers deviate from one brand to the other brand, some reasons in order of high percentage to low percentage include :
- Perceived difference among the two brands in terms of value delivered
- Due to dissatisfaction from the product class
- Due to increased competition
- Other friendships or bonds
- Without any reason just move away
There are different types of defectors because of which the customers switch from one brand to the other :
- Price defectors
- Product defectors
- Service defectors
- Market defectors
- Technology defectors
- Organizational defectors
There are several customer retention steps to retain the customers, these program follow certain steps:
- Measure customer retention
- Interview the former customers
- Analyze complaint and service data
- Identify switching barriers
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