Definition

• The process of fulfilling mutually agreed

upon customer requirements in a superior
way over time and selectively pursuing
continuity and growth thru building mutual
self interest
• The supplier must anticipate and capably
respond to the changing requirement and
preferences of customer
Fulfilling customer requirements
• Thinking strategically about relationship: to think and act
beyond the transactional exchange of products or
services and move towards collaborative exchange
process
• Partnering as a focused market strategy: draw on the
bedrock marketing strategy of STP to formulate a
relationship strategy
• Delivering superior value with relation specific offerings:
Flaring out from the industry band width, eliminate
certain standard elements from the offering and offer
them as options, flare out with augmentation
• Relationship specific Pricing strategy and tactics:
supplier firm markets the option items in menu fashion,
share the cost savings with customer
 Continued…….
• Create relationship specific organization
structure
• Enterprise selling: a set of skills, strategies
and processes that enable a supplier to
identify and recruit a potential partner firm
to create extraordinary value for end user (
Tata motors & Fiat, Renault & Nissan
motors, Boeing & GE )
 Pursuing Continuity & Growth
• Continuity: supplier firm strives to maintain
working relationship with customer to achieve
mutual strategic objectives
• Growth: Firm works to increase its profitable
share of customer business to become an
irreplaceable partner
• Working together: Communication, coordination,
conflict resolution, build trust & commitment
( increased warranty/guarantee )
 Customer Retention Planning
• Importance of keeping existing customer for getting
repeat orders: tracking customer retention, assessing
customer defections, respond to defection proactively,
reform marketing strategy to arrest defection
• Market share is the measure of customer retention.
• Selectively growing the existing businesses
• Appoint relationship managers to nurture business
relationship
• Introduce risk sharing & gain sharing profit agreement
• Move from equipment offerings to solution offerings
relationship
 Customer Relationship
management ( CRM )
• CRM is the bundling of customer strategy and
processes, supported by relevant software for
improving customer loyalty, by acquiring the
right customer, crafting the right value
proposition to retain strategic and important
customers.
• Provide offerings at all stages of product life
cycle and delight the customer
• Synchronize marketing efforts to deliver superior
value to Customer