| Throughout the years, one can see a pattern of | | | | communicating consistently (but not too often) |
| world change, downturn and survival. No business | | | | and delighting these customers, organizations can |
| has been immune to this and many are | | | | nurture a really profitable relationship. Customers |
| susceptible for the most part. We are living in an | | | | in this segment will be advocates of the |
| uncertain time. While this uncertainty need not be | | | | organization. |
| negative, one has to think of ways in which to | | | | Butterflies |
| differentiate themselves. One way is to devise a | | | | These are customers who are disloyal but |
| relationship marketing strategy. | | | | profitable. |
| Relationship Marketing Strategy was a huge | | | | These represent high profit potential. The |
| buzzword back in the 1990s. The idea of getting | | | | customer is basing the exchange on the |
| close to your customers, being their friend, | | | | transaction not the relationship and organizations |
| answering their needs not yours was 'de rigeur' at | | | | should look to engage with (but try to not marry) |
| the turn of the century. This buzzword should be | | | | the customer at every transaction. |
| at the heart of every business success. Yet | | | | Barnacles |
| many business owners that I talk to only spend | | | | These are customers who are loyal but not |
| 20% of their time on existing customers, the | | | | profitable. |
| other 80% is spend on getting new customers. | | | | These represent low profit potential. There is a |
| The idea of 'Surely, once a customer, always a | | | | limited fit between the company's offerings and |
| customer' is changing rapidly in the economy | | | | the customers needs. There is potential for cross |
| we're looking at. Every customer counts and | | | | or up-selling here, however it does depend on the |
| should count - existing and potential. | | | | size of the customers wallet. |
| The cornerstone of a relationship marketing | | | | Strangers |
| strategy is customer data. Whether you are sole | | | | These are customers that are not loyal or |
| trader, small to medium sized enterprise or a | | | | profitable. |
| large organization, having clear, succinct data on | | | | These represent the lowest profit potential. There |
| your customer's buying habits is essential. When | | | | is little fit between the company's offerings and |
| do customers buy, what do the buy, do the buy | | | | the buyers needs. Organizations should not put |
| extra product/service one day and not the next, | | | | any resources into these relationships. |
| etc should all be written down and not be only in | | | | By analyzing customer data with a fine |
| the memory bank of the business owner. When it | | | | tooth-comb, businesses can become more aware |
| is down on paper, all the information can be | | | | of their profit potential from existing customers. |
| analyzed and reanalyzed. | | | | Not all customers are the same. Just as friends, |
| While a loyal customer can be described as | | | | we have levels of friendship and that sits well with |
| someone who purchases regularly from you, | | | | us. The same applies to our business life. |
| there are levels of loyalty which every business | | | | Customers are not equal. Once you identify who |
| owner should be aware of. After analyzing your | | | | are loyal and profitable, you can invest more in |
| customer data, you can find that your regular | | | | those relationships. Similarly, you can divest your |
| customers can be further segmented. This will | | | | time and resources from non-profitable |
| allow you to devise different messages to each | | | | relationships and see them for what they are. |
| group of customers, depending on their | | | | In summary, by focusing on the relationship |
| profitability and loyalty to the company. | | | | rather than the transaction, organizations can |
| Customers can fall into four categories: | | | | create mutually beneficial relationships with their |
| True Friends | | | | customers in a tightening economy. This is how |
| These are customers who are loyal and profitable. | | | | successful companies will survive the uncertainty. |
| These represent the highest profit potential. By | | | | |