Developing Relationships

There is so much talk about the need to continuously develop relationships in marketing and business. The reason for this is because it is cheaper to keep a customer than to win a new one. The possibility for continued business is great, which itself may result to increased profits.

It is not a surprise then that there are now concepts such as Relationship Marketing. There are two approaches to Relationship Marketing, the traditional way and the electronic approach. In the CIM paper of Stakeholder Analysis students are required to explain e-Relationship Marketing and how it can be developed in an organisation.

It is important to always translate theories into practice. Case scenarios and now tasks are a way of bringing out this ability in every student. The world out there is real. To be able to make progress, marketers must be realistic and they must take steps to have an implementable program. Relationship Marketing Management is one such program and the marketing student must be able to explain how a relationship can be created, developed and maintained.

Here are some tips;

- Have a clear objective of why you need to have a long term relationship. It is important to note that the objective must be based on principle and not just convenience. People are now becoming more familiar about marketing strategies and a number try as much as possible to avoid the “gab gifted professionals.” So set out your objectives straight from the start and ensure it is part of culture to have long term relationships.

- Identify key stakeholders with whom you need to have a long term relationship with. It is this point that results into segmentation of customers, putting them in groups which may be given subjective attention depending on their respective levels of involvement in the buying and decision making process.

- Identify the needs and wants of your stakeholders. Talk to them, put forth your offers and listen to them as they speak. Show attentiveness and be sensitive towards what they say and how they say it. Respect their input and do not look down on their points of view. Relationships must always be mutual. The meaning of this is that there must be due respect.

- As much as possible, try to meet the needs of these respective stakeholders. A satisfied stakeholder is one who has had a positive experience. Because of an acceptable interface, there is always a natural need of wanting to return for another transaction – money or data. Always remember that a satisfied customer will always return, he/she will also influence more people to do business with you.

- Invest in consistent two-way communication. Do not just talk to stakeholders, instead, talk with them. Allowing stakeholders to express themselves is key in the development of a relationship. Examples of such include online discussion forums and blogs. These allow for two-way communication in an environmentally cost efficient way.

- Admit it when you make errors and take a step further to correct your mistakes. Whilst marketing oriented companies focus on a “get it right first time” approach to satisfying customers, it is important to be realistic and note that it is rear to achieve a 100% satisfaction.

- Do not over-exaggerate your company or individual abilities. Limitations must be acknowledged and at the same time, strengths must be elevated.

- Involve key stakeholders in the decision making processes where their input is relevant and needed.

- Show appreciation of what the stakeholders do. There are different ways in which this can be done. For example, you could periodically hold open or guest days at your office premises or elsewhere, where gifts can be given accordingly. Barclays Bank Zambia is one of the organisations that invest in such events.

- Having specific individuals dedicated to respective stakeholders is a good step to take in building and maintaining a relationship. It is for this reason that organisations such as Standard Chartered Bank have relationship managers and key account executives. When the stakeholder has a problem, he can then approach the respective individual who looks into his needs. This creates confidence that there will be a listening ear. It also to a better understanding of each others needs.

There are indeed more steps that can be taken in the development and maintenance of a relationship. The points mentioned above apply to both the traditional and contemporary approaches to Relationship Marketing and indeed subsequent management.