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Relationship Marketing (Benefits of relationship marketing (It is more…
Relationship Marketing
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Customer loyalty
Reichheld (2003, p. 48) no company can grow if its customer bucket is leaky, and loyalty helps eliminate this outflow’.
Loyalty, at its simplest, may be viewed as ‘repeat patronage accompanied by
a favourable attitude’ (Egan, 2011, p. 57).
The aim of customer relationship management is ‘to foster loyalty and repeat purchasing’ (Dibb et al., 2016, p. 223)
Types of relationships
‘30Rs’ (see Gummesson, 1994; 2008), Classic market relationships (R1-R3) – these form dyads, triads and networks / Special market relationships (R4-R17) – these are between various groups of stakeholders in the microenvironment; involve varying levels of commitment; and have various contexts / Mega relationships (R18-R23) – these can be personal and social networks; alliances with other companies; and relationships with stakeholders in the macroenvironment Nano relationships (R24-R30) – these are within an organisation (e.g. between centres, departments, functions) and with providers of marketing services
Dwyer et al. (1987, p. 15) 3 Types of relationships: seller-maintained (an asymmetric relationship) / buyer-maintained (an asymmetric relationship) & bilateral (in which both parties are highly motivated, for example, in business-to-business contexts).
Dwyer et al. (1987) Relationship Stages: awareness – recognition by one party that another party is a potential exchange partner / exploration – the potential exchange partners consider and conduct a trial exchange / expansion – the benefits from exchange and the interdependence of the exchange partners increase / commitment – loyalty emerges & dissolution – withdrawal or disengagement.
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Commitment, trust, customer orientation
and communication
Customer orientation/empathy is being able to understand and see things from the customer’s perspective, and is required by the seller initially although mutual empathy develops over time.
(Conway and Swift, 2000) Commitment encompasses an intention and a desire to continue purchasing from and maintain a relationship with an organisation, influenced through social bonding
Service-dominant logic
S-D logic (Vargo and Lusch, 2017) It re-conceptualises marketing as service-for-service exchange (rather than the exchange of goods for money).
It regards value as being co-created by both parties to an exchange, rather than being created and delivered by only one.
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