Relationship MarketingTactics and Trends

Today’s Topics

1. WHAT is Relationship Marketing?

2. WHY is RM a smart business strategy?

3. HOW do I start? Marketing best practices

4. WHO is successful? Real-life relationship marketing tactics - two local businesses

5. WHEN should I use it? How RM can work with trends for 2007

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."

Traditional vs. Relationship Marketing…

Traditional model*

four P's of marketing mix:

Pricing

Product Management

Promotion

Placement

Current relationship marketing model:

the 4 C’s

Cost to the Customer

Customer Solution

Communication

Convenience

*Replace with an alternative model where the focus is on customers and relationships rather than markets and products.

$$ 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.

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?

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 organization’s 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.).

Don’t 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!

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

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!

Integrated Financial Solutions, LLC - The Ultimate Relationship Marketers

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

Complex, high dollar product (fee-based financial planning). Sophisticated clientele.

Trends to Watch in 2007

1. Affluent working women

2. Micro-marketing opportunities

3. Web strategies

4. Word of mouth/relationships more important than ever

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.

She’s economically vital: the number of women 55+ in the

workforce is on the rise

Trends to watch 2007:Micro-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

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. That’s 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.

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/colleagues for referrals. Especially for high-ticket items and complex decisions.

Relationships are more important than ever.

Integrated Relationship Marketing

Communications

Advertising

Customer Service

Branding Relationship Marketing

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