Relationship Marketing Tactics and Trends

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Relationship MarketingTactics and Trends
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Todays Topics

• WHAT is Relationship Marketing?
• WHY is RM a smart business strategy?
• HOW do I start? Marketing best practices
• WHO is successful? Real-life relationship
  marketing tactics - two local businesses
• WHEN should I use it? How RM can work with trends
  for 2007

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What is Relationship Marketing?

• Relationship marketing focuses on creating NEW
  and MUTUAL VALUE between you and your customers
  on a long-term basis.
• Regis McKenna (marketing guru) puts it
• "Marketing is not a function, it is a way of
  doing business . . . marketing has to be all
  pervasive, part of everyone's job description,
  from the receptionist to the board of directors."

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Traditional vs. Relationship Marketing

• Traditional model
• four P's of marketing mix
• Pricing
• Product Management
• Promotion
• Placement

Current relationship marketing model the 4 Cs
Cost to the Customer Customer Solution Communicat
ion Convenience
Replace with an alternative model where the
focus is on customers and relationships rather
than markets and products.
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Benefits of Relationship Marketing

• Long-term customers tend to be less inclined to
  switch, and also tend to be less price sensitive.
  
• Long-term customers may initiate free word of
  mouth promotions and referrals.
• Long-term customers are more likely to purchase
  related products from you.
• Regular customers tend to be less expensive to
  service and tend to be consistent in their
  purchase habits.
• Increased customer loyalty makes employees' jobs
  easier and more satisfying.

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The Good News for Small Local Businesses

• Easier than ever for local and regional
  businesses to develop mutually beneficial
  relationships with customers
• Relationship marketing can distinguish your
  business from chain/national businesses
• BUT HOW DO YOU DO IT?

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5 Best Practices in the REAL WORLD

• Research Identify your UNIQUE VALUE PROPOSITION.
  How do you solve problems for your customers?
  Find out what your competitors are doing.
• Develop a Marketing Strategy how to build on
  your company or organizations strengths while
  taking advantage of competitors' weaknesses
• Create a Marketing Plan Prepare a document that
  shows how you will reach your strategic goals
  with marketing tools (advertising, PR, print,
  web, etc.).
• Dont forget common sense Be flexible. Business
  owners and managers deal with environmental
  factors, limited resources, uncertainty and tight
  time tables. The most successful marketer is
  often the one who trains his or her
  'gut-reaction' to simulate that of the average
  customer!
• Measure your results! How did you hear about
  us? KEEP TRACK!

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JP Kitchen Design Studio Integrated
Relationship Marketing

• New business opened April 2006. Marketing
  Strategy
• Establish new business as first choice for
  kitchen remodeling services in Lake Country
• Establish credibility in building construction
  community
• Cultivate long-term customer prospect
  relationships to establish word of mouth business

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JP Kitchen Design marketing plan

• Detailed, customer-focused, content-rich website
• Aggressive print campaign (magazine and
  newspaper) My Kitchen
• Customer focused newsletter
• Direct mail around project sites
• Commitment to public brand through uniforms,
  showroom, signage
• Contest to promote buzz Ugly Kitchen
• Public relations campaign to establish
  credibility
• Involvement in community groups
• Results Impressive first year growth!

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Integrated Financial Solutions, LLC - The
Ultimate Relationship Marketers
Complex, high dollar product (fee-based financial
planning). Sophisticated clientele.

• Relationship Marketing Techniques
• Investment in defining and branding what makes
  them unique (Wealth Engineering)
• Investment in high-end communications materials,
  refining message, making product easy to
  understand and easy to buy
• Team based sales and service approach
• Birthday cards
• Hand written thank-you notes
• Hand-delivered Christmas presents
• Annual customer appreciation party
• Pre-meeting agendas, follow-up notes for clients
• Asking for referrals at every opportunity
• Serve on boards, committees where likely to meet
  target customers.
• Result WORD OF MOUTH brings in business

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Trends to Watch in 2007

• Affluent working women
• Micro-marketing opportunities
• Web strategies
• Word of mouth/relationships more important than
  ever

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Trends to watch in 2007

• Affluent Working Women
• Prime-time women ages 50 are the healthiest,
  wealthiest and most influential generation of
  women in history.
• Can be the primary marketing target for travel,
  autos, real estate, financial services,
  technology and home improvement.
• She values relationship stories prime-time women
  value connections with others above all else.
  Relationships are forged through storytelling
  use their life experiences to offer them guidance
  and information.
• Shes economically vital the number of women 55
  in the workforce is on the rise

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Trends to watch 2007Micro-marketing
Opportunities

• Increasing media fragmentation
• more advertising opportunities
• Specialty publications
• More competition for advertising dollars
• Easier to reach specific niches good news for
  small business
• Tailor your message to meet the needs of a
  specific group

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Trends to watch in 2007 Web Trends

• The web is a key source for consumer decision
  making before the sale. On an average day, nearly
  60 million people use a search engine. Thats why
  your web site must have deep, rich, relevant
  content that is easy to access.
• Search engine marketing was a 5.75 billion
  industry in 2005 and will nearly double by 2010.
  Local search online invest in a paid search
  campaign w/Yahoo or Google.

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Trends to watch in 2007 Word of Mouth

• Multiple, fragmented market messages can cause
  confusion to the consumer who can they trust?
• It is increasingly difficult for consumers to
  make a decision, so they ask friend/family/colleag
  ues for referrals. Especially for high-ticket
  items and complex decisions.
• Relationships are more important than ever.

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Integrated Relationship Marketing
Relationship Marketing
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How can we help?

• Find your unique value and tell the world about
  it
• Make the tough decisions about marketing
  opportunities
• Build relationships for your business in the most
  effective way

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