Fundamental Concepts

in
Relationship Marketing
Winning confidence and loyalty of
customers are the prime foci of any
business

Market-driven organisations excel at
retaining their most valuable
customers
BASIS OF BUILDING RELATIONSHIP
Establishing a relationship can be divided into
two parts:
Attracting right type of the customer
Building relationship with that them in a
mutually beneficial manner

Every organisation irrespective of whether it is a
service firm or a manufacturing firm should learn to
cope with the new competition of the service
economy

Relationship marketing makes customers less price
sensitive

Mind share analysis and customer satisfaction
surveys inputs for building relationship strategies

Customer perceived quality (CPQ) is basically a
function of the customer perception of two
dimensions viz., technical quality and functional
quality
SERVICE COMPETITION
BUILDING BRAND EQUITY
Positive associations and predisposition in the
mind of the consumer brought by building
brand equity result in more favorable response
to the firms marketing efforts

A brand creates value by creating positive
attitude towards firms offer
RELATIONSHIP MARKETING AND VALUE CHAIN
The concept of relationship marketing is built
around the concept of customer value and the
value chain

Managing the customer as an asset is
becoming increasingly important where
emphasis is given to customer retention,
lifetime value and customer affinity
RELATIONSHIP MARKETING PROGRAMMES
Continuity marketing

Partnering

One-to-one marketing

Integrated telephone marketing

STRIVING FOR INTERRACTIVITY
Interactivity results in high lifetime value

Recency is the most powerful predictor


RFM MODEL
A customer who has visited the company
website recently (R) and frequently (F), and
created a lot of monetary value (M) through
purchase is the target audience for
e-promotion campaign

Higher the RFM score, more profitable the
customer is
WEB ANALYTICAL SOFTWARE
helps in building better relationship
with the customer