Transcript What is business`s mission? - The Partner Marketing Group

Richard Mattson, The Partner Marketing Group
Let’s Make a Real Plan that Works!
RELATIONSHIP MARKETING
AGENDA
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Welcome & Introductions
A Glimpse at the Possibilities
Business’s mission
Back to the fundamentals
What makes a great relationship?
Contrast—SCM vs. CCM
A case that worked and one that didn’t
Phases of a relationship and
marketing’s role in each phase
Building a profitable RM program
A GLIMPSE AT THE POSSIBILITIES
Revenue of a Technology Company
Comparing Strong vs. Weak Relationships
Customers with stronger relationships
Customers with weaker relationships
4,000,000
64%
3,500,000
3,000,000
56%
50%
2,500,000
2,000,000
148%
1,500,000
1,000,000
500,000
0
Total Average Customer
Revenue
Business Unit A Revenue
Business Unit B Revenue
Business Unit C Revenue
Source: Proprietary Company Analysis
ONE ARGUMENT
What is business’s mission?
Business’s
mission is to
create and serve
customers!
Business’s mission
is to grow
shareholder value!
WHAT IS BUSINESS’S MISSION?
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To be successful, businesses must
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Create and serve customers
Grow shareholder value
If a business over-emphasizes one at the expense of the other, it may see
some short-lived “success spikes” in the direction of its focus, but it will
not survive long term
Huh?!
Whazza?!
ANOTHER ARGUMENT
What drives effective RM?
Effective Relationship
Marketing brings out the
humane side of the
business. It’s about the “R”
in “RM!
Naah! Effective
Relationship Marketing
relies on really nailing
the marketing basics. It’s
more about the “M” in
“RM!”
WHAT DRIVES EFFECTIVE RM?
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Relationship Marketing is not an alternative approach to marketing; it is
how effective companies in the 21st century will market.
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It calls for making hard, focused marketing decisions such as rigorous
customer selection and product portfolio
And it calls for infusing your marketing with powerful Human Factors
A business that over-emphasizes one at the expense of the other will face
sub-optimal performance compared with competitors who balance these
dimensions.
Aaaargh?!
#%!0#?!
THE PRODUCT-CUSTOMER BASICS
• Economic segmentation
• Profitable, unprofitable relationships
• Customer defections
• How will you adapt?
• Kinds of customers
• Nature of offerings
•Gap analysis
• Competitive opportunity
• Unmet opportunities
• Your strengths and
weaknesses
• What are customers
buying, not buying?
• Differences among your
competitors & their customers
• Where are your competitors
successful and not? Why?
THE SOFTER SIDE OF RM
Understanding the relationship piece is critical
to driving the customer value formula
 This is where “Human Factor Marketing” plays
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Not with
you, bozo
brain!
Is this going
to get all
touchy feely?
FIRST, LET’S DO SOME WORK TOGETHER
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What makes a great personal relationship?
(Think about your best friends.)
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What makes a great vendor-customer
relationship?
THE ROLE OF HUMAN FACTOR MARKETING
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Once you’ve done the work to refine your “customer value” strategy, you can
turn to the Human Factors in marketing.
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Human Factors activate your communications strategy, bringing the
emotional dimension into your strategy.
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Customer Value + Human Factors = The Total Entity…but it does not
describe how to effectively move that “Total Entity” into the market. That is
the job of your Relationship Marketing Strategy.
STEPS TOWARD HUMAN FACTOR MARKETING
Human Factor
Human Marketing Factor
1. Be Yourself and Be Real!
1. Ensure your company persona is
real—fully formed, genuine, trustworthy,
consistent, and interesting.
2. Find friends where they’re looking
for friends like you
2. Prospecting? Put your company out
there where prospects are looking for
vendors like you.
3. Building Relationships—To have a
friend, you’ve got to be a friend
3. Build business relationships, any
kind of relationship!
4. If built your friendship around
sports, don’t assume your friend will
like opera
4. Stay relevant; pose new directions
only after you’ve elicited interest
BRAINSTORM
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Identify some critical characteristics of an
effective relationship marketing program?
THINKING ABOUT AN RM STRATEGY
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It replaces start-and-stop campaigns with an ongoing engagement process.
It becomes the way you go to market.
It recognizes that prospects are at varying stages of the buying process at all
times (including those “resting” customers who have no immediate need).
It hinges on trust, providing value, relevance, and synching with customer
rhythms.
Soon, I
hope!
Is he going to
get to the
point?
COMPONENTS OF AN RM PROGRAM
Relevant
solution &
engagement
options
Relevant gifts of
value
LET’S BUILD A BASIC PROGRAM
Timeframe—about a year
Deepen
Solution
Awareness case study
Elicit
hidden
pains
Relevant
solution &
engagement
options
Relevant gifts
of value
Hold Live
Event
BANT
Elicit
hidden
pains
Relevant
business
insight
Offer onsite
assessment
Offer ondemand
webcast
based on
event
Quick
customer
stories
Tele
checkin
Relevant
business
insight
Offer ondemand
webcast based
on event
Relevant
business
insight
Business
Insight
Touches
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REVENUE, COST BENEFITS OF RM
Direction
Why?
Account Value
Customers look to vendor for wider range of needs;
higher cross-sell, up-sell potential
Customer Acquisition Costs
• Greater customer retention = fewer customer adds
required to sustain business levels
• Increased satisfaction & loyalty = greater advocacy,
referrals
Account Servicing Costs
Fewer customers in transactional learning curve,
know processes, less hand-holding
Price Sensitivity
Less price-shopping, less switching, more willing to
reward vendor for effective relationship = brand
premium
Employee acquisition/retention
costs
Strong customer relationships fuel enhanced
employee satisfaction
Shuddup, you
idiot!!
Is he finally
done?!
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