Transcript Relationship Marketing - MOD Marketing | Small Business

Relationship Marketing
Tactics and Trends
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
work with trends for 2007
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."
Traditional vs. Relationship Marketing…
Traditional model*
four P's of marketing mix:
Current relationship
marketing model:
the 4 C’s
Pricing
Cost to the Customer
Product Management
Customer Solution
Promotion
Communication
Placement
Convenience
*Replace with an alternative model where the focus is on customers and
relationships rather than markets and products.
$$ 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.
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?
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!
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
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!
Integrated Financial Solutions, LLC The Ultimate Relationship Marketers
Complex, high dollar product (fee-based financial planning). Sophisticated
clientele.
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
Trends to Watch in 2007
1.
2.
3.
4.
Affluent working women
Micro-marketing opportunities
Web strategies
Word of mouth/relationships
more important than ever
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
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
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.
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.
Integrated Relationship Marketing
Communications
Branding
Relationship Marketing
Customer Service
Advertising
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