Ch 7: Building customer relationships Flashcards
The 4 stages of the evolution of customer relationships
Strangers
Acquaintances
Friends
Partners
Three types of customer expectations
Transactional expectations
Active relational expectations
Passive relational expectations
Benefits of relationship marketing to customers (3)
Confidence benefits
Social benefits
Special treatment benefits
Benefits of relationship marketing to firms (3)
Economic benefits
Customer behaviour benefits
Human resource management benefits
Relationship value of a customer (def)
a concept or calculation that looks at the customer from the point of view of their lifetime revenue and/or profitability contributions to the company.
Lifetime value (def)
Lifetime revenue stream (considering costs this means lifetime profitability)
4 layers of the customer pyramid
platinum
gold
iron
lead
4 types of retention strategies are connected to this level of relationship bond framework.
Financial Bonds
Social Bonds
Customization bonds
Structural bonds
Financial Bonds (def)
The customer is tied to the firm primarily through financial incentives e.g. airline industries, hotels.
Social Bonds (def)
Long-term relationships are built through interpersonal and social bonds. Customers are seen as individuals who the company seeks to understand.
Customization bonds (def)
Loyalty can be created through intimate knowledge of individual customers and through the development of one-to-one solutions that fit the individual customer needs.
Structural bonds (def)
Involves all three previous levels. These are created by providing services to the client that are frequently designed right into the service delivery system for that client.
Reasons why a customer might not be the correct customer for your company (4)
The wrong segment
Not profitable in the long term
Difficult customers
Customers who do not want relationships
