How can companies build strong relationship with customers?

1. HOW CAN COMPANIES BUILD
STRONG RELATIONSHIP WITH
CUSTOMERS
?

2. Buyer relationship can be classified into 8
categories:
1. Buying and selling
2. Bare bones
3. Contractual transaction
4. Customer supply
5. Cooperative systems
6. Collaborative
7. Mutually adaptive
8. Customer is king

3. Buying and Selling:
Simple routine exchanges with moderate
level of cooperation and information
exchange.

4. Bare Bones:
These relationships require more adaptation by
the seller and less cooperation and exchange.

5. Customer supply:
In this traditional custom supply situation, competition
rather than cooperation is the dominant form of
governance.

6. Contractual Transaction:
These exchanges are defined by formal contract and
generally have low levels of trust, cooperation, and
interaction.

7. Cooperative Systems:
The partners in cooperative systems are united in
operational ways, but neither demonstrates structural
commitment through legal means or adaptation.

8. Collaborative:
In collaborative exchanges, much trust and
commitment lead to true partnerships.

9. Mutually Adaptive:
Buyers and sellers make many relationship-specific
adaptations, but without necessarily achieving strong
trust or cooperation.

10. Customer is king:
In this close, cooperative relationship, the seller adapts to
meet the customer’s needs without expecting much
adaptation or change in exchange.

11. Business Relationship: Risks and Opportunism
Vertical coordination can facilitate stronger customer-seller
times but at the same time may increase the risk to the
customer’s and supplier’s tailored expenditure for each other.

12. Opportunism:
Opportunism takes place when buyers can’t monitor the
supplier’s performance properly. It is some sort of cheating
or under supply relative to an implicit or explicit contract.

13. New Technology and Business Customers:
Top firms use technology to improve the way they do
business with their B2B customers.

14. Disclaimer:
““These slides were created by Shine Ali, MEC Cochin,
during a marketing internship by Prof. Sameer
Mathur, IIM Lucknow (See www.IIMinternship.com)”