Principles of Marketing

What is relationship marketing?

Relationship marketing is a marketing

strategy with the goal of maximizing
profits by building strong relationships
with customers and increasing their
satisfaction with products and services.
This strategy depends on customer
relationships to lead business growth,
as opposed to expanding the market
share of the company's products and
services. It aims to build customer
loyalty through repeated transactions
and word-of-mouth diffusion.
Putting the customer's needs first, relationship
marketing not only provides products and
services that solve their unique problems, but
also builds long-lasting relationships by
following up with them after their purchase. 
 
Benefits of relationship marketing
 

1. Increased life-time value per customer 

Life-time value (LTV) refers to the predicted net profit
of an ongoing relationship between a customer and a
business. A maximized LTV is considered a huge benefit
of relationship marketing. This is achieved as there will
be more repeat purchases from existing clients, and you
will have to invest less costs into new customer
acquisition.
2. More repeat purchases + lower CPA
 
If you can gain the trust of your customers, they will be
less likely to waver and switch to a competitor's
products, and will repeatedly purchase from you. If
you can develop products and a customer experience
that keeps everyone satisfied, you can avoid customer
churn as well. 
 
3. Business growth through word of mouth
 
These days, when everyone is on social media and look
to their peers or influencers to learn what’s trending,
word of mouth advocacy is very powerful. If you can
turn your customers into loyal customers - or better yet,
fans - they will act as free advertisement to promote
your products and services in their circles, helping you
to attract new customers.
4. Larger average deal size
 
By cultivating loyal customers through
relationship marketing, you can expect to
increase the average deal size and the amount
spent per year, thereby maximizing the amount
spent per customer.
The Value of Customer Relations and Customer Service

What is a customer?

A customer is a person or company that receives, consumes

or buys a
product or service and can choose between different goods
and suppliers.
What is customer value?

Customer value is the satisfaction of the customer experiences (or

expects to
experience) by taking a given action relative to the cost of that
action.
The given action is traditionally a purchase, but could be sign-up, a
vote or a
visit, while the cost refers to anything a customer must forfeit in
order to receive the
desired benefit, such as money, data, time, knowledge.
Two identical products with identical exposure can only
compete on cost. Two
differentiated products do not have to compete on cost.
Products are not just
differentiated by their features.

If Toyota brings out a car, you may presume it’s reliable

because one of its key
brand features is reliability
How to cultivate Customers Value to attract new customer?

 Your Offering
 Your Value Proposition
 The Market Place Offerings
 What the Customer Needs
Value proposition - a statement that answers
the 'why' someone should do business
with you. It should convince a potential
customer why your service or product will be
of
more value to them than similar offerings
from your competition.
Refine your value Proposition
Consider all the businesses out there offering exactly what you
offer. With similar
products, customers have no choice but to make a subjective
choice. Your value
proposition is where you win them over. You need to
communicate what makes you
different, and continually work to increase that value
proposition to set yourself apart. You
can do that through the following:
Audience Segmentation
Segment your audience based on what they value, and
adjust your message to
each. What an adult considers as value, can be
completely different than teenagers. Old
age customers they like you always greeted them “Hi,
Hello, good morning, good
afternoon.” Figure out what’s a gesture they would
appreciate.
Don’t compete on Price
If you try to compete on price alone with competitors,
you’ll often lose. Cost is
certainly a factor for customers, but many people are
willing to pay more when they can
see the value and feel like they’re getting their money’s
worth. Satisfied customers that
perceive a lot of value in your offering are not only
willing to pay more, they’re willing to
talk you up.
Conversely, an unsatisfied customer
who hasn’t seen the value is going to
go
somewhere else, even if you offer
the lowest price
Focus on Your Most Valuable Customers
You can’t spread your resources, sales force evenly among
entire customer base
and expect a good return. You need to focus on the customers
who provide the greatest
value in return.
Likewise push a lot of resources towards building relationship
with existing
customers over acquisition. It cost less to keep a customer than
to acquire a new one, and
great services will boost the lifetime customer value so each
customer is worth more than
in the long run.
5 Customer Value Creation Ideas

 Make the value/price ratio seem bigger than it is. Go extra

mile, give them a
free gift, extra service. Make them feel that they’re
appreciated.

 Make your service or products easy to buy. Offering

different ways to pay for
it, delivery, etc.
 Create areal Unique Value Proposition. This holds especially true
if you’re
dealing with B2B. Communicate with your costumer, why they
should buy your
product over competition.
• Work on your brand. Your business name itself should be
synonymous with
value. Develop a unique method to treat your customers, handle
complaints with
care, etc.
 Provide stellar customer service. Treating them as such can be
extremely
rewarding for both parties.
Customers are very important to businesses/companies.
They provide competitive
advantage. Because of customers companies can achieve
High market share lead which
means high sales in terms of volume and pesos.
Customers are also influencers and
models for they spread good things about your company
and your services. Also, they are
the reason for the company’s existence.
1.__is a marketing strategy with the goal of maximizing profits by building strong relationships
with customers and increasing their satisfaction with products and services.
2. ___refers to the predicted net profit of an ongoing relationship between a customer and a
business.
3. CPA
4. LTV
5.__is a person or company that receives, consumes or buys a
product or service and can choose between different goods and suppliers.
6.__is the satisfaction of the customer experiences by taking a given action relative to the cost of
that action.
7.__a statement that answers the 'why' someone should do business
with you.
8.__Old
age customers they like you always greeted them
9._are very important to businesses/companies.
10-15_Customer Value Creation Ideas