Chapter 13
Building Partnering Relationships
The Value Of Customers

Maintaining strong relationships with the customer is important
(Existing accounts contribute a large portion of sales)

Selling to satisfied customers not only costs less than acquiring
new customers but also is easier

Customers are worth more in terms of revenue than some
salespeople recognize
 CVS – Customer lifetime value – combined total of all future
sales (typically discounted back into current dollars).
Value of Customers

Consultative customer-oriented sales
approach – shown to improve customer
retention & profitability
 Another study – finds average company
loses 20-50% of its customer base every
year, and the rate is increasing!
Relationships and Selling
Relationship marketing – many definitions
 For selling, it means creating the type of
relationship that best suits a customer’s
need
 Behavioral loyalty – purchasing same
product from same vendor over time (habit)
 Attitudinal loyalty – emotional attachment
to a product

Market exchanges

Solo exchange – one time purchase
Example: car trouble out of town

Functional relationships – long term
relationship characterized by behavioral
loyalty – (habit or routine)
Partnerships
Relational Partnerships – close personal
bond involved – know small details can be
worked out
 Strategic Partnerships – both make
significant investments to improve
profitability

Managing Relationships

Some companies want a market exchange,
some want a functional relationship, and
others want a strategic partnership.

Size, access & image, & access to
innovation help drive partnerships3
Choosing Right Relationships
Size – example: Keyser Group &
McDonalds – worked for decades -P.348
 OR J.C. Penney and Martha Stewart
 Access and Image – SRI (software
company)– can provide access to very
specific markets – P. 350
 Access to Innovation – Lead users face &
resolve needs months/years ahead of others
-HEB & (RFID)

Phases of Relationship
Development

Awareness
 Exploration
 Expansion
 Commitment
 Dissolution
 Note: Research shows the middle three
stages are the most important!
Characteristics of Successful
Partnerships

Mutual trust
 Dependability
 Competence
 Customer Orientation
 Honesty
 Likability
 Open Communication & Common Goals
Successful Partnerships

Commitment to Mutual Gain
 Organizational Support
– Structure & Culture
– Training
– Rewards
Selling Yourself Vignette

Deeper relationship – Student
Ambassadors!