1. Identify the steps of Selling -Building Customer Relations.
Eagle Challenge
Learning Target
Identify the steps of Selling -Building Customer Relations.

2. : Building Customer Relationships
Explain relationship marketing, its goals, and the benefits of long-term relationships for firms and customers
Explain why and how to estimate customer lifetime value
Specify the foundations for successful relationship marketing--quality core services and careful market segmentation
Provide you with examples of successful customer retention strategies
Introduce the idea that “the customer isn’t always right”

3. Relationship Marketing
is a philosophy of doing business that focuses on keeping and improving current customers
does not necessarily emphasize acquiring new customers
is usually cheaper (for the firm)--to keep a current customer costs less than to attract a new one
goal = to build and maintain a base of committed customers who are profitable for the organization
thus, the focus is on the attraction, retention, and enhancement of customer relationships

4. Lifetime Value of a Customer
Assumptions
Income
Expected Customer Lifetime
Average Revenue (month/year)
Other Customers convinced via WOM
Employee Loyalty??
Expenses
Costs of Serving Customer Increase??

5. A Loyal Customer is One Who...
Shows Behavioral Commitment
buys from only one supplier, even though other options exist
increasingly buys more and more from a particular supplier
provides constructive feedback/suggestions
Exhibits Psychological Commitment
wouldn’t consider terminating the relationship--psychological commitment
has a positive attitude about the supplier
says good things about the supplier

6. Customer Loyalty Exercise
Think of a service provider you are loyal to.
What do you do (your behaviors, actions, feelings) that indicates you are loyal?
Why are you loyal to this provider?

7. Benefits to the Organization of Customer Loyalty
loyal customers tend to spend more with the organization over time
on average costs of relationship maintenance are lower than new customer costs
employee retention is more likely with a stable customer base
lifetime value of a customer can be very high

8. Benefits to the Customer
inherent benefits in getting good value
economic, social, and continuity benefits
contribution to sense of well-being and quality of life and other psychological benefits
avoidance of change
simplified decision making
social support and friendships
special deals

9. “The Customer Isn’t Always Right”
Not all customers are good relationship customers:
wrong segment
not profitable in the long term
difficult customers

10. Strategies for Building Relationships
Foundations:
Excellent Quality/Value
Careful Segmentation
Bonding Strategies:
Financial Bonds
Social & Psychological Bonds
Structural Bonds
Customization Bonds
Relationship Strategies Wheel

11. Building Trust in Relationships
Trust in Me
Building Trust in Relationships

12. Objectives Explain the importance of trust.
Demonstrate techniques to build trust.

13. You trust your best friend, your favorite teacher, and your respected boss.
Trust allows you to build important relationships.

14. What Is Trust? Trust: When someone is able to rely on you
Dependable: You are reliable and do what you say you will do
Someone other people can believe in

15. What Is Trust? All about relationships
Trust doesn’t just happen—it must be built.
Building Trust/James Davis/TedxUSU: watch?v=s9FBK4eprmA

16. Trust Is Important at Work
Trusting relationships lead to:
Happier, more productive work environment
Promotions and raises
Customer support

17. Negative Consequences of No Trust
Toxic work environment
Decreased sales, efficiency, and profit
Less time focused on work

18. Trust Is Important in Your Personal Life
Stronger, more resilient, and longer lasting bonds
People who don’t trust you are less likely to:
Be honest
Put effort into building friendships

19. Characteristics of Trustworthy People
Honesty
Dependability
Loyalty
Transparency
Integrity
Empathy
Consistency

20. Trust-Building Techniques
Show respect for others.
Honor the rights, freedoms, views, and property of others.
Don’t share confidential information.

21. Trust-Building Techniques
Take responsibility for your mistakes.
Taking Responsibility for Mistakes at Work: question-taking-responsibility-for- mistakes-at-work.
Do your best.

22. Trust-Building Techniques
Put others first.
Communicate often and openly.
Focus on your ethical principles.

23. A friend and coworker tells you she’s looking for a new job.
Should you tell your boss or keep the secret?
You want to build trust in your relationships with your boss and your friend.
What should you do?