Building Partnering RelationshipsRelationships and Selling

• Relationship marketing– reflects companies’ attempts to develop stronger

relationships with their customers

• Customer lifetime value (CLV)– the combined total of all

future sales

13-1Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

Relationships and Selling

• Behavioral loyalty – refers to the purchase

of the same product from the same vendor over time (“automatic”).

• Attitudinal loyalty – an emotional

attachment to a brand, company or salesperson.

13-2Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

Market Exchanges-Two Types

• Solo exchanges– No assurance of any future business– Both parties focus on their own self interest

• Functional relationships– Long-term market exchanges– Behavior loyalty– Previous purchase definitely influences next

purchase

13-3Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

Partnerships-Two Types

• Relational partnerships– Buyer and seller have a

close personal relationship

– Buyer and seller work together to solve problems

– Trust

• Strategic partnerships– Long-term

relationships– Make significant

investments to improve the profitability of both parties = $$$!

13-4Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

Types of Relationships between Buyers and Sellers

13-5

Exhibit 13.2

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Selling in Market Exchanges and Long-Term Relationships

• Making contact• Closing the sale• Following through• Initiating the relationship• Developing the relationship• Enhancing the relationship

13-6Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

“They” Choose the Right Relationship!!

• One MAJOR factor that influences a salesperson’s success is the type of relationship the customer desires

• Other factors are size of the account, access and image in the market, and access to technology.

13-7Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

Phases of Relationship Development & Maintenance

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Foundations ofSuccessful & Lasting Relationships

13-9

Exhibit 13.4

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Elements of Mutual Trust

• Dependability– Buyer’s perception

that the salesperson and the product and company s/he represents will live up to promises made

• Competence– Demonstrated

knowledge of the customer, the product, the industry and the competition

13-10Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

Elements of Mutual Trust

• Customer orientation– Degree to which salesperson puts customer

needs first

• Honesty– Truthfulness, sincerity, being candid

• Likeability– Behaving in a friendly manner and finding a

common ground between buyer and seller

13-11Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

Open Communication

• More building block for building successful relationships:

• Listen, listen, listen!!• Salespeople should encourage buyers to

speak up• Be aware of cultural differences

13-12Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

Common Goals

• Partners should focus on maximizing opportunities rather than arguing about who will benefit the most from the relationship

• Helps sustain the partnership• Measurable goals are critical

13-13Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

Characteristics of Successful Partnerships

• Commitment to mutual gain– Mutual investment

• Organizational support– Structure and culture– Training– Rewards

13-14Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

Stages of Partnerships

14-15

Exhibit 14.1-VERY IMPORTANT!!

Copyright © 2011 The McGraw-Hill Companies, Inc. All rights reserved

CRM Strategies

Customer Acquisition• Gain the greatest number of new “Best” customers as early in their

“lifespan” as possible.Customer Retention• Retain and expand your business and relationships with your

customers through up-selling, cross-selling and servicing.Customer Loyalty• Offer programs to ensure that your customers happily buy what you

offer only from you.Customer Evangelism

Enable loyal customers to become a volunteer sales force.Cost Reduction• Reduce costs related to marketing, sales, customer service and

support.Improve ProductivityEnhance your e-business strategies.