Chapter 13

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
 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)
Relational Partnerships – close personal
bond involved – know small details can be
worked out
 Strategic Partnerships – both make
significant investments to improve
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
Phases of Relationship
 Exploration
 Expansion
 Commitment
 Dissolution
 Note: Research shows the middle three
stages are the most important!
Characteristics of Successful
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