7 principles of relationship marketing models

The 7 principles of customer-centric companies - TM Forum Inform

7 principles of relationship marketing models

The 7 principles of customer-centric companies view of individual customer's interactions and experiences over the life of their relationship. Customer- centric companies understand that execution of their strategy is highly Rob has more than 15 years' experience in market research and consulting, including two years. Here are 7 Key Marketing Principles to Answer Questions like “How Do I Get 1) Strategy before tactics – Create a marketing strategy first, and THEN build your. 7. Principles of Relationship Marketing Chapter 3 Relationship Marketing at Marketing. Chapter 5 Patronage and Loyalty Strategies: Understanding the.

Time and again, this has proved to be their undoing. The hopes of developing a better relationship with the customers have led to the rise of CRM marketing tools.

7 principles of relationship marketing models

But maintaining a good relationship with your customers goes beyond a simple tool; it is a complete methodology. Here are 7 principles that can help you maintain a better customer relationship for your business: Know thy customers The most basic principle of customer relationship management, it is often overlooked by companies.

For building customer relationships, you need to first know what exactly they aspire for. The market is volatile and things can change overnight. Services that were once valued could become obsolete in a moment.

Nokia, for instance, never bothered to know what the mobile phone consumers actually want. The oversight on its part led to the mobile giant's eventual demise. There are more than one ways to do that. You can keep a track of their movements on your website, which could be analyzed to give you insights. You can, alternatively, hold surveys that might give you direct insights into their needs. Knowing customer requirements is the basic principle that would dictate all subsequent principles of CRM.

Have a better interaction Lurking behind a curtain and never giving direct answers might work well for God, but it would definitely not work for you. In order to manage profitable customer relationships, you have to interact with your customers.

Social media is often a great platform to do so, so make sure you have a strong presence there. The previous principle of "know thy customer" could be easily achieved if you have a good interaction with them.

Respect customer individuality Customers are individuals, and that's how you must treat them. One marketing strategy never works for all customers. Even if you are targeting a specific demographic, you need to create further segments. Since every customer matters, you need to try dealing with each one of them as per the needs.

Your business must offer something for every segment of customers you deal with so that no one is left out. Not only would it increase your sales, but also help build brand loyalty. Have a single face Your company must echo the same ethos while dealing with every customer throughout the globe.

Relationship marketing - Wikipedia

It might seem to be in direct contrast with the previous principle, but it really isn't. While addressing the needs of every customer is important, it should not appear that you are trying to please everyone.

7 principles of relationship marketing models

They include for instance stylists, hair dressers, coaches, trainers, gardeners, lawyers, contact centre employees, etc. They deliver a physical service with a visible result. Service companies are thoroughly aware that they must effectively manage the customer contact employees in order to monitor the quality of the service with respect to attitudes and behaviour.

This is very important in service companies because there might be a large variable in the performance of the customer contact employees in relation to the results of the services delivered. The quality of a service between service companies and customers hospital intake, having a meal in a restaurant or accountancy or management consultancy services can vary very strongly in addition to other important factors.

The lack of homogeneity in services creates difficulties for service companies. Delivery of services often occurs during an interaction between a customer and contact employees. Attitude and behaviour of an employee create a perception of the service as experienced by the customer customer perception.

This perception may be either positive or negative.

Science Of Persuasion

Physical Evidence The physical evidence within the service marketing mix refers to an environment in which a service comes about from an interaction between an employee and a customer which is combined with a tangible commodity. The physical evidence includes a representation of a service for instance brochures, company stationery, business cards, reports, company website, etc. A good example is a hotel. The design, furnishing, lighting and decoration of a hotel as well as the appearance and the attitudes of the employees have a certain influence on the quality of the service and customer experience.

This service scape includes three physical environment dimensions that represent the relation between services and environment, namely: Environmental conditions such as temperature, sound, smell, etc.

Space and functions such as map, equipment, decoration, etc. Signs, symbols and artefacts such as signature, decoration style, personal touch, etc.

Relationship marketing

As services are intangible, customers are continuously looking for concrete clues to help them understand the nature of the service company.

The more intangible the service the more important it is to make the service around it tangible. Credit cards are a good example of tangible proof compared to the provision of intangible credit facilities by credit card companies and banks.

In conclusion, the physical evidence serves as a visual metaphor of what the company represents, what services it facilitates and the relations between customers and employees.

7 principles of relationship marketing models

Another important point for consideration: Satisfied customers are the best publicity for the services or products to be delivered. The marketing strategy must be effective, in which satisfaction of existing customers can be communicated to potential customers. Social marketing is a useful tool in this respect. It is not tangible but it supplies physical evidence with the aid of for instance a written recommendation by a customer or user.

As services are results of actions for or with customers, a process involves a sequence of steps and activities to get there.

  • The 7 principles of customer-centric companies
  • Service Marketing Mix (7 P’s)

This element comprises all activities and services in which the people involved play an important role. As a service is made up of a chain of activities, it is important to take the possible waiting period between the activities into consideration.

7 principles of relationship marketing models

That is why it is important that marketeers take care of the communication about possible delivery times and by doing so the management of customer expectations. Creating and managing effective service processes are for the existence of service companies.

Principles of marketing

Managing the process factor is mainly due to the perish-ability of services which means that the services cannot be inventoried, stored for reuse or returned.

For instance, airline seats that are not booked cannot be reclaimed. It is therefore important that the service companies manage demand as well as they possibly can. The delivery system and the flexibility of the employees are two other key factors in the successful delivery of a service.

This process-based method provides a better management of the service in the area of internal and external interaction, makes this transparent and ultimately this is implemented in practice.

Key notes on the service marketing mix In short, the unique 3 Ps that are part of the service marketing mix: People, Physical Evidence and Process determine the success and the existence of a service company. They influence the buying needs, customer satisfaction and customer experience.