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Relationship Development Strategies

Relationship development strategies focus on achieving customer loyalty and repeat business through positive relationships built on communication and quality service. This moves away from one-time sales pitches. Effective strategies provide a core service that meets expectations while differentiating through additional relationship drivers. These include overcoming customer inertia to change brands through sustained efforts. They also consider switching costs like time investments that make changing providers challenging.

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1921 Vishwanath Pakhare
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3K views

Relationship Development Strategies

Relationship development strategies focus on achieving customer loyalty and repeat business through positive relationships built on communication and quality service. This moves away from one-time sales pitches. Effective strategies provide a core service that meets expectations while differentiating through additional relationship drivers. These include overcoming customer inertia to change brands through sustained efforts. They also consider switching costs like time investments that make changing providers challenging.

Uploaded by

1921 Vishwanath Pakhare
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Relationship Development Strategies

What do you mean by Relationship Development Strategies?


It is a marketing strategy that focuses on achieving customer loyalty and repeat business by developing strong,
positive relationships with customers through communication and quality customer service, this type of marketing
moves away from methodologies that focus on a one-time pitch and sell.
Core service provision-
 A firm needs to begin the relationship development process by providing a good core service delivery that at a
minimum, meets customer expectations.
 Intuit (An American business and financial software company) and USAA (A Banking products and insurance
company), they both offer excellent quality and both use different relationship startegies to enhance their
success.
Relationship drivers
o Switching barriers-
 Customer Inertia- The biggest challenge for new entrants is getting customers to change their behaviour ; to be prepared to leave their
trusted brand and try a new one. The reason that both the energy and banking sectors have had their collars felt by the competition
authorities of late is largely that new entrants have been reluctant to enter either sector, not because of market abuse but due to the levels
of prevailing inertia – despite sustained multimillion-pound advertising campaigns and the arrival of price comparison websites.
 Switching Costs- Include investment of time, money or effort such as setup costs, search cost, learning costs and contractual costs- that
make it challenging for the customer to move to another provider. Eg- Patient and Doctor

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