This document discusses strategies for developing relationships with customers. It identifies three main strategies: 1) providing high quality core services to increase satisfaction and perceived value, 2) creating switching barriers like costs and inertia that discourage customers from changing providers, and 3) building relationship bonds with customers through financial, social, customization and structural bonds to strengthen the relationship. Relationship bonds involve personal connections, customizing offerings, and integrating the customer into the company's processes and structure.

1. BUILDING
RELATIONSHIP
MANAGEMENT
VELI BAHCECI
Relationship Development Strategies

2. RELATIONSHIP DEVELOPMENT
STRATEGIES
Core Service Provision
2. Switching Barriers
3. Relationship Bonds
1.

3. CORE SERVICE PROVISION
• Perceived Service Quality
• Perceived Value
• Satisfaction

4. SWITCHING BARRIERS
• Customer Inertia
• Switching Costs

5. WHY SOME DISSATISFIED
CUSTOMER STAY WITH THE FIRM?

6. HOW CAN FIRMS RETAIN THE
CUSTOMERS?

7. SWITCHING COSTS
• Time Cost
• Effort Cost
• Searching Cost
• Setup Cost
• Learning Cost
• Contract Cost

8. RELATIONSHIP BONDS
• Berry and Parasuraman

9. LEVELS OF RELATIONSHIP BONDS
• Financial
• Social
• Customization
• Structural Bonds.

10. LEVEL 1 – FINANCIAL BONDS
• Volume and frequently rewards;
• Lower prices for bigger volume
• A more frequent purchase
• Bundling and cross selling
• Stable pricing

11. LEVEL 2 – SOCIAL BONDS
• Personal Relationships
• Continuous Relationships

12. SOCIAL BONDS AMONG CUSTOMERS
• Health clubs
• Educational settings
• Social groups and service environments etc.

13. LEVEL – 3: CUSTOMIZATION BONDS
• Customer Intimacy
• Anticipation / Innovation
• Mass Customization

14. LEVEL – 4: STRUCTURAL BONDS