Relationship Marketing Ladder

COMM2385 CLIENT MANAGEMENT
Lecture 3: The Relationship Marketing Ladder
Developed by Melanie Casul (2012) Based on the original Melbourne materials by David Fouvy and Caroline Van De Pol (2010)

Learning objectives for today:
•#2 Construct strategies that build long and successful agency/client relationships.
•#4 Demonstrate professional skills required for effective advertising client and account management.
7/4/2014
RMIT University Vietnam
2

You will learn to
•Describe different levels on the relationship ladder and steps to move up on it.
•Explain how Client’s Perspective is important to Great Work.
•Analyse the foundation of client service: Work, Relationship, Trust and the links among them.
•Articulate ways to Negotiate with client’s difficult request.
•Describe approaches to build Trust
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3 Key Concepts for Topic Writing
•Triangle 1: Cost-Time-Quality
•Triangle 2: Great Work-Relation-Trust
•Ladder: Marketing Relationship
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Client & Agency Expectations…
6/26/2012
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5
6/26/2012
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•What are some of the problems in this relationship?
•http://www.youtube.com/watch?v=R2a8TRSgzZY

Quality-Price-Time Triumvirate Model
6/26/2012
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Source: Reproduced with kind permission from Monica Morelos, River Orchid Vietnam, 2012.

“The Relationship Marketing Ladder”
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Source: Reproduced with kind permission of Butterworth-Heinemann from Payne, Christopher and Peck (1995), Relationship Marketing for Competitive Advantage, p.viii
Prospect/Contact
Acquaintance/Customer
Expert for Hire
Steady Supplier/Supporter
Advisor/Advocate
Trusted Partner
Emphasis on winning new customers (customer catching/ client acquisition)
Emphasis on developing & enhancing relationships (customer keeping/ client retention)
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Trust is at the ladder top

8
Level
Activity1: How a client would describe it
L1 CONTACT
We’ve met. I think he works for ….
L2 ACQUAINTANCE
“I’ve know her for a while. We have some things in common and know some of the same people”.
L3 EXPERT FOR HIRE
“He’s very knowledgeable in that area and did excellent work for us on a project”.
L4 STEADY SUPPLIER
“We’ve had a relationship for a while now. She and her firm consistently deliver and I’ve recommended her to a few colleagues. For this type of work, we’ll continue to use them”
L5 TRUSTED ADVISOR
“I have known him for a long time. He’s superb at what he does and has great business sense. I really trust his judgement and I will definitely use him as a sounding board for tough issues”.
L6 TRUSTED PARTNER
“I view them as a long term partner in growing our business. They’ve built many strong relationships with our people and they consistently add value. I feel we get the best that their firm can offer”.
7/4/2014
8

9
Level
How a client would describe it
L1 CONTACT
We’ve met. I think he works for ….
L2 ACQUAINTANCE
“I’ve know her for a while. We have some things in common and know some of the same people”.
L3 EXPERT FOR HIRE
“He’s very knowledgeable in that area and did excellent work for us on a project”.
L4 STEADY SUPPLIER
“We’ve had a relationship for a while now. She and her firm consistently deliver and I’ve recommended her to a few colleagues. For this type of work, we’ll continue to use them”
L5 TRUSTED ADVISOR
“I have known him for a long time. He’s superb at what he does and has great business sense. I really trust his judgement and I will definitely use him as a sounding board for tough issues”.
L6 TRUSTED PARTNER
“I view them as a long term partner in growing our business. They’ve built many strong relationships with our people and they consistently add value. I feel we get the best that their firm can offer”.
7/4/2014
9

Solomon’s Triangle
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RELATIONSHIP
GREAT WORK
TRUST
Apply to your group work

Activity 2: Group Discussion
•Group1: Work vs. Relation “Great work Wins Business; a Great Relation Keeps it.” (Solomon, ch38)
–Do you agree with “The work is the only thing that matters”.
–Why did agencies with great work lose clients?
–How is relationship defined by Solomon?
–Why has relationship become so important in keeping client?
•Group2: Great Work Builds Relationship “In Writing the Brief, Provide the Client’s Perspective” (Solomon, ch9)
–What was the “Washing Planes” advertising concept and how was it created?
–What links connect this chapter with ch3, “Live the Client’s Brand”?
–How can you become the expert on client’s products, people, and culture?
7/4/2014
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Activity: Group Discussion
•Group3: Persuading “Make No Commitment without Consultation “(Solomon, ch40,41)
–What is the issue in terms of Quality-Time-Cost triangle?
–Why was the client labeled as from “hell”?
–Facing the client’s request, Solomon had 3 options: “Yes”, “No”, “Hold on”, which one did he choose and why? What was the result?
–How did he persuade the client to agree on his proposal?
–What lessons do you learn in terms of how to deal with difficult clients?
•Group4: Building trust “Do Not Sell” (Solomon, ch17)
–Why buying (by client) is preferred to selling (by agency), according to Solomon? Agree?
–How do agencies gain client’s trust? Give example of someone you trust.
–Does serving client’s interest mean following client’s request? Why?
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6 Signposts of a great relationship (individual level)
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©2010 by Andrew Sobel

TRUST
•Does your client think you are professionally competent?
•Does your client think you have Integrity?
•Does your client think you are willing to always focus on their agenda?
•Can you work informally, without constant checks, controls, and updates?
•Does your client require extensive documentation and analysis to support everything you say, or are they…
•Willing to consider your judgment and insight without challenging it?
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THOUGHT LEADERSHIP
•Are you perceived as a trusted business advisor who brings both subject matter depth and broad business knowledge and judgment to the table?
•Are you shaping and leading the client’s agenda, or simply reacting to it?
•Would your client say that you bring them new ideas on a regular basis?
•Do you have strong “share of mind” in terms of the group of individuals who are shaping how your client thinks?
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INNER CIRCLE
•Do you have a “seat at the table” for significant strategic and operational conversations and decisions?
•Does your client call you and say, “We’re just thinking about this idea and I wanted to bounce it off you at an early stage…”
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16

TRANSPARENCY
•Does the client openly share information with you about their plans, programs, priorities, and upcoming initiatives?
•Or does your client keep you in the dark, at arms length?
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LOYALTY
•Will the client always use you and the firm in areas of acknowledged competence?
•If they frequently shop around, or would be willing to drop you in favour of a slightly cheaper alternative, you may not have the high quality relationship that you thought you enjoyed.
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REFERENCE-ABILITY
•Would this client simply provide a passive reference if asked, or…
•Are they actively promoting you and your organization to colleagues and friends and creating referrals for you?
7/4/2014
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Activity 3b: “Client Relationship Ladder”
1.What would you as an agency do to climb the ladder?
2.Write down at least 2 for each ladder level from the agency perspective.
3. Share findings with the class…
7/4/2014
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Relationship Ladder topic suggestions for Assessment 3
•More topics to explore with your interviews:
1.Finding the right agency = client fit
2.Which is more important client acquisition or retention?
3.“Once a client, always a client”
7/4/2014
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Next: Video Discussion
•BRANDBOX “Leadership in Creative Industries”
7/4/2014
22

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