1. Managing relationships

2. Conditions Conducive to Customer Relationship Growth Frequency of contact Continuity of contact Perception of high risk Customer lacks expertise Level of involvement Intimacy Switching costs

3. Customer considerations Do they want a relationship? Timescales Types of loyalty: spurious, latent, sustainable and inertia Marketplace dynamics( relationship seekers and exploiters)

4. Loyalty stages Committed Likes Satisfied habitual switchers

5. Nature of relationship Close relationship: high volume of business and high degree of trust and belief between the two parties. Recurrent relationship: low volume of business but high degree of trust and belief Dominant partner relationship: high volume of business but low degree of trust and belief Discrete relationships: low volume of business and low degree of trust and belief

6. Key account management Individually managing a select number of the most profitable customers to protect and maintain their custom. Strategic Selective Long term Mutually beneficial

7. Key Processes Mckinsey Seven S model Structure Strategy Systems Skills Staff Shared values style

8. Implementing relationship marketing Spectrum of behavior: Bund Jackson’s model describes a range of customers between ‘Always a share (appropriate for transaction marketing) and ‘lost for good’ (appropriate for relationship marketing).

9. Recognizing and Managing Customer Relationships at Risk When are customer relationships most vulnerable? - When employees are promoted or transferred or they resign or retire. - When the customer relocates. - At the time of store closure. - When we don’t treat them fairly.

10. Recognizing and Managing Customer Relationships at Risk Threats to strong relationships. Dealing with relationships at risk. -Recognize weakening relationships. -Determine causes. -Create better conditions.

11. Measuring the return on relationship Return on relationship: long term financial worth of relationship. ROI, ROCE, ROR ABC costing Pareto rule