2. Today’s Topics
1. WHAT is Relationship Marketing?
2. WHY is RM a smart business strategy?
3. HOW do I start? Marketing best
practices
4. WHO is successful? Real-life
relationship marketing tactics - two local
businesses
5. WHEN should I use it? How RM can
3. What is Relationship Marketing?
Relationship marketing focuses on creating
NEW and MUTUAL VALUE between you and
your customers on a long-term basis.
Regis McKenna (marketing guru) puts it:
"Marketing is not a function, it is a way of doing
business . . . marketing has to be all pervasive, part of
everyone's job description, from the receptionist to the
board of directors."
4. Traditional vs. Relationship Marketing…
Traditional model*
four P's of marketing mix:
Pricing
Product Management
Promotion
Placement
Current relationship
marketing model:
the 4 C’s
Cost to the Customer
Customer Solution
Communication
Convenience
*Replace with an alternative model where the focus is on customers and
relationships rather than markets and products.
5. $$ Benefits of Relationship Marketing
Long-term customers tend to be less inclined to switch,
and also tend to be less price sensitive.
Long-term customers may initiate free word of mouth
promotions and referrals.
Long-term customers are more likely to purchase related
products from you.
Regular customers tend to be less expensive to service
and tend to be consistent in their purchase habits.
Increased customer loyalty makes employees' jobs
easier and more satisfying.
6. The Good News for Small & Local Businesses
Easier than ever for local and regional
businesses to develop mutually beneficial
relationships with customers
Relationship marketing can distinguish
your business from chain/national
businesses
BUT HOW DO YOU DO IT?
7. 5 Best Practices in the REAL WORLD
Research: Identify your UNIQUE VALUE PROPOSITION. How do you
solve problems for your customers? Find out what your competitors are
doing.
Develop a Marketing Strategy: how to build on your company or
organization’s strengths while taking advantage of competitors' weaknesses
Create a Marketing Plan: Prepare a document that shows how you will
reach your strategic goals with marketing tools (advertising, PR, print, web,
etc.).
Don’t forget common sense: Be flexible. Business owners and managers
deal with environmental factors, limited resources, uncertainty and tight time
tables. The most successful marketer is often the one who trains his or her
'gut-reaction' to simulate that of the average customer!
Measure your results! “How did you hear about us?” KEEP TRACK!
8. JP Kitchen Design Studio:
Integrated Relationship Marketing
New business opened April 2006.
Marketing Strategy:
Establish new business as first choice
for kitchen remodeling services in Lake
Country
Establish credibility in building &
construction community
Cultivate long-term customer &
prospect relationships to establish
word of mouth business
9. JP Kitchen Design marketing plan
Detailed, customer-focused, content-rich website
Aggressive print campaign (magazine and newspaper)
“My Kitchen”
Customer focused newsletter
Direct mail around project sites
Commitment to public brand through uniforms,
showroom, signage
Contest to promote buzz “Ugly Kitchen”
Public relations campaign to establish credibility
Involvement in community groups
Results: Impressive first year growth!
10.
11. Integrated Financial Solutions, LLC -
The Ultimate Relationship Marketers
Relationship Marketing Techniques:
Investment in defining and branding what makes them unique
(“Wealth Engineering”)
Investment in high-end communications materials, refining
message, making product easy to understand and easy to buy
Team based sales and service approach
Birthday cards
Hand written thank-you notes
Hand-delivered Christmas presents
Annual customer appreciation party
Pre-meeting agendas, follow-up notes for clients
Asking for referrals at every opportunity
Serve on boards, committees where likely to meet target customers.
Result: WORD OF MOUTH brings in business
Complex, high dollar product (fee-based financial planning). Sophisticated
clientele.
12. Trends to Watch in 2007
1. Affluent working women
2. Micro-marketing opportunities
3. Web strategies
4. Word of mouth/relationships
more important than ever
13. Trends to watch in 2007
Affluent Working Women
“Prime-time women” ages 50+ are the healthiest, wealthiest and
most influential generation of women in history.
Can be the primary marketing target for travel, autos, real estate,
financial services, technology and home improvement.
She values relationship stories: prime-time women value
connections with others above all else. Relationships are forged
through storytelling… use their life experiences to offer them
guidance and information.
She’s economically vital: the number of women 55+ in the
workforce is on the rise
14. Trends to watch 2007:
Micro-marketing Opportunities
Increasing media fragmentation
more advertising opportunities
Specialty publications
More competition for advertising dollars
Easier to reach specific niches = good news for
small business
Tailor your message to meet the needs of a specific
group
15. Trends to watch in 2007: Web Trends
The web is a key source for consumer decision
making before the sale. On an average day,
nearly 60 million people use a search engine.
That’s why your web site must have deep, rich,
relevant content that is easy to access.
Search engine marketing was a $5.75 billion
industry in 2005 and will nearly double by 2010.
Local search online: invest in a paid search
campaign w/Yahoo or Google.
16. Trends to watch in 2007: Word of Mouth
Multiple, fragmented market messages can cause
confusion to the consumer – who can they trust?
It is increasingly difficult for consumers to make a
decision, so they ask friend/family/colleagues for
referrals. Especially for high-ticket items and
complex decisions.
Relationships are more important than ever.
18. How can we help?
Find your unique value and tell the world
about it
Make the tough decisions about
marketing opportunities
Build relationships for your business in
the most effective way
