Relationship marketing

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The Definition of Marketing Series:Relationship Marketing. Learn how to use relationship marketing to improve your firm's performance. Relationship marketing is also a key factor underpinning success in social media marketing as it builds engagement with customers. For more information go to: http://hausmanmarketresearch.org

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Relationship marketing

  1. 1. DEFINITION OF MARKETING SERIES<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  2. 2. DEFINITION OF MARKETING SERIES<br />Relationship Marketing – Fundamentals of Social Media Marketing<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  3. 3. What is Relationship Marketing ?<br />Relationship marketing is a strategy designed to foster customer loyalty, interaction and long-term engagement. This customer relationship management (CRM) approach focuses more on customer retention than customer acquisition.*<br />*http://searchcrm.techtarget.com/definition/relationship-marketing<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  4. 4. How is Relationship Marketing Different ?<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  5. 5. How is Relationship Marketing Different ?<br />Long Term Focus<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  6. 6. How is Relationship Marketing Different ?<br />Long Term Focus<br />Customer Satisfaction over Sales<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  7. 7. How is Relationship Marketing Different ?<br />Long Term Focus<br />Customer Satisfaction over Sales<br />One on One Marketing <br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  8. 8. How is Relationship Marketing Different ?<br />Long Term Focus<br />Customer Satisfaction over Sales<br />One on One Marketing <br />Understanding Customers over Predicting<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  9. 9. How is Relationship Marketing Different ?<br />Long Term Focus<br />Customer Satisfaction over Sales<br />One on One Marketing <br />Understanding Customers over Predicting<br />Retention<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  10. 10. How is Relationship Marketing Different ?<br />Long Term Focus<br />Customer Satisfaction over Sales<br />One on One Marketing <br />Understanding Customers over Predicting<br />Retention<br />Data Driven<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  11. 11. What Relationship Marketing is NOT.<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  12. 12. What Relationship Marketing is NOT.<br />Data mining<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  13. 13. What Relationship Marketing is NOT.<br />Data mining<br />Metrics<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  14. 14. What Relationship Marketing is NOT.<br />Data mining<br />Metrics<br />Managing customers<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  15. 15. Who Gains Value in RM ? <br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  16. 16. Who Gains Value in RM ? <br />Companies <br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  17. 17. Who Gains Value in RM ? <br />Companies <br />Gaining new customers is 5 times more expensive than retaining existing customers <br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  18. 18. Who Gains Value in RM ? <br />Companies <br />Gaining new customers is 5 times more expensive than retaining existing customers <br />A 5% increase in customer retention = 25-85% increase in profits (NPV) Reichheld and Sasser (1990)<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  19. 19. Who Gains Value in RM ? <br />Companies <br />Gaining new customers is 5 times more expensive than retaining existing customers <br />A 5% increase in customer retention = 25-85% increase in profits (NPV) Reichheld and Sasser (1990)<br />Customers are more loyal<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  20. 20. Who Gains Value in RM ? <br />Companies <br />Gaining new customers is 5 times more expensive than retaining existing customers <br />A 5% increase in customer retention = 25-85% increase in profits (NPV) Reichheld and Sasser (1990)<br />Customers are more loyal<br />Customers spread positive word of mouth<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  21. 21. Who Gains Value in RM ? <br />Companies <br />Gaining new customers is 5 times more expensive than retaining existing customers <br />A 5% increase in customer retention = 25-85% increase in profits (NPV) Reichheld and Sasser (1990)<br />Customers are more loyal<br />Customers spread positive word of mouth<br />Often more expedient and effective when serving customers.<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  22. 22. Who Gains Value in RM ?<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  23. 23. Who Gains Value in RM ?<br />Customers<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  24. 24. Who Gains Value in RM ?<br />Customers<br />Comfort<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  25. 25. Who Gains Value in RM ?<br />Customers<br />Comfort<br />Sense of belonging/ community<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  26. 26. Who Gains Value in RM ?<br />Customers<br />Comfort<br />Sense of belonging/ community<br />More effective<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  27. 27. Relationship Marketing = Social Media Marketing<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  28. 28. Relationship Marketing = Social Media Marketing<br />Require engagement<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  29. 29. Relationship Marketing = Social Media Marketing<br />Require engagement<br />Focus on the customer<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  30. 30. Relationship Marketing = Social Media Marketing<br />Require engagement<br />Focus on the customer<br />Collaborative<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  31. 31. Relationship Marketing = Social Media Marketing<br />Require engagement<br />Focus on the customer<br />Collaborative<br />Integrates across marketing, sales, customer service, technology, operations management …<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  32. 32. Relationship Marketing = Social Media Marketing<br />Require engagement<br />Focus on the customer<br />Collaborative<br />Integrates across marketing, sales, customer service, technology, operations management …<br />People, Processes, Technology<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  33. 33. How Can This Help You Succeed ?<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  34. 34. How Can This Help You Succeed ?<br />Structural Issues<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  35. 35. How Can This Help You Succeed ?<br />Structural Issues<br />Cross functional teams<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  36. 36. How Can This Help You Succeed ?<br />Structural Issues<br />Cross functional teams<br />Management support for customer focus<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  37. 37. How Can This Help You Succeed ?<br />Structural Issues<br />Cross functional teams<br />Management support for customer focus<br />Total quality management<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  38. 38. How Can This Help You Succeed ?<br />Structural Issues<br />Cross functional teams<br />Management support for customer focus<br />Total quality management<br />Employee empowerment<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  39. 39. How Can This Help You Succeed ?<br />Structural Issues<br />Cross functional teams<br />Management support for customer focus<br />Total quality management<br />Employee empowerment<br />Employee satisfaction<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  40. 40. How Can This Help You Succeed ?<br />Measurement Issues<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  41. 41. How Can This Help You Succeed ?<br />Measurement Issues<br />Databases<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  42. 42. How Can This Help You Succeed ?<br />Measurement Issues<br />Databases<br />Develop appropriate metrics<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  43. 43. How Can This Help You Succeed ?<br />Measurement Issues<br />Databases<br />Develop appropriate metrics<br />Track retention<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  44. 44. How Can This Help You Succeed ?<br />Measurement Issues<br />Databases<br />Develop appropriate metrics<br />Track retention<br />Model defection<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  45. 45. How Can This Help You Succeed ?<br />Measurement Issues<br />Databases<br />Develop appropriate metrics<br />Track retention<br />Model defection<br />Customer Lifetime Value<br />Angela Hausman, PhD http://hausmanmarketresearch.org<br />
  46. 46. More questions?<br />Check out other videos in The Definition of Marketing video glossary series<br />See the definition of essential marketing terms and phrases at:<br />http://www.MarketingThatWorks.TV<br />

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