Creating and Cementing Bankable Bonds

Relationship marketing as practised in various sectors along with some effective tips on using your customer’s database

“Service is more important than just simply getting to the bottom line. When we do that, and do that long enough, we'll win the heart, minds and loyalty of our customer.” - Jack Antonini

WHY RELATIONSHIP MARKETING AT ALL?
When offerings from various companies are nearly at par in terms of quality and performance, it is the personal equation between a buyer and seller, which often tilts the scale in favour of the seller.

Here are some examples of companies who have implemented relationship marketing and have benefited from it.

PERSONAL TOUCH
In 1985, the FMCG giant Nestle had only 20% of the baby food market in France. They regularly mailed information on childcare to young mothers. Qualified dieticians were employed to help mothers chalk out a nutrition schedule for their children. By 1992, its share shot up by 40%.

CEMENTING BONDS
Birla Super Shoppes seeks to build relationships by offering free consultancy to cement buyers such as masons, civil engineers and contractors. Each Super Shoppe has a civil engineer and a taskforce to assist him. Travelling to the customer’s site to give a demonstration or solve their problem helped them to build relationships with the customers.

BANKING ON RELATIONSHIPS
ANZ identified a gap between what customers expected (in the form of advisory services and investment banking) from the bank and the perceived delivery. It is for this crème de la crème, that the Captain Grindlays Club was formed. The bank pushes the whole customer-bank relationship beyond the ordinary functional spheres of banking, to something more one–to–one and exclusive.

HOW TO USE YOUR CUSTOMER DATABASE

For Customers

Send timely reminders of needed services: doctor's/dentist's appointments, oil change/tune up, "your letterheads/memo pads will be depleted soon.Order now with the attached reply form..."

Send customers' kids birthday cards, if you can get that on your database.

Invite customers/prospects to a product demonstration or educational seminar. (Free to customers, small fee for prospects.)

Using careful segmentation, send:

- Information about price changes
- Information about product changes
- Product samples to customers.

Newsletter (especially as part of a Frequent Buyer program).

For Business-To-Business

Case studies of successful implementation of your product. IT companies include case studies of solutions developed for their clients in their sales brochures.

Send press releases on new product announcements to customer/prospect segments. Include information for requesting product brochures.

Reprints of your ad campaign with note.( In case you missed our ads when they ran in ...xyz...and ...abc..., we're sure you'd want to see them.)

Contests (customers only). Integrate with sales incentive contest for sales.

Send them a copy of the annual report.

Conclusion:

If a firm is to implement relationship marketing, it has to understand the objective and nature of such a strategy. In the competitive situation that is emerging in almost all industries and markets, a relationship marketing strategy is crucial for survival.

Further Readings:

1. “As Competition Hots up, Car Makers get Personal to Build Lasting Loyalties”
The Economic Times, April 23 2000.

2. “The Personal Touch”
Umesh Rajamani
Strategic Marketing; Brand Equity