The Importance of Relationship Marketing

By Theo Muller

Why have 'The Professions" not embraced Relationship Marketing?

• Unwillingness to make internal changes
• Inability to effect internal changes

Three Topics:

• Client loyalty
• Practical hints
• Evaluate client portfolio

CLIENT LOYALTY CONCEPT

Marketing to existing clients

(Managing the Professional Service Firm - David Maister)

• Existing clients present higher probability prospects
• Lower marketing costs
• Follow-on assignments are more profitable
• Leverage opportunities
• Learning opportunities
• Raising internal awareness of existing clients
• Circulate profiles of key clients/contacts throughout the office
• Demonstrate importance of client to business
• Junior staff to make suggestions to enhance relationships
• Newsfile/newspaper clippings/magazine articles
• Develop marketing budget. Cash and time
• Reverse seminars
• Staff training

And, most important...

• A commitment from senior partners and managers to promote the client focus concept.

"People do business with people NOT with businesses"

MAJOR LESSONS FROM CASE STUDIES

• Develop multiple relationships
• Develop a passionate interest in the client's business
• Participate in the client's meetings conferences and seminars
• Introduce the client to other business leaders
• Invite the client to business breakfasts, lunches etc
• Obtain client's advice and feedback

"Quality merely provides the 'driving licence' for being in business" (Nick van der Walt)

ServQual

• Reliability
• Responsiveness
• Assurance
• Tangibles
• Empathy

RELIABILITY

The ability by the service provider to perform the promised service dependably and accurately.

RESPONSIVENESS

The willingness to help customers/clients and to provide prompt service.

ASSURANCE

The knowledge and courtesy of employees and their ability to convey trust and confidence.

TANGIBLES

The appearance of physical facilities, equipment, personnel and communication materials.

EMPATHY

The provision of caring, individualized attention to customers/clients.

Research by MMResearch ™

	Importance	Performance
1. Reliability	8.84	7.71
2. Responsiveness	7.65	7.39
3. Assurance	7.48	7.72
4. Tangibles	7.15	7.04
5. Empathy	6.88	7.28

The difference lies in the ability to develop multiple, effective and lasting relationships with key people in the client company.

Client loyalty manifests itself in three ways:

• Intent to re-purchase
• Primary behaviour
• Secondary behaviour

Measuring Client Loyalty

• Direct feedback
• "The stranger out of town with the briefcase"

Wrong clients I

Two opposing scenarios:

• All business is good business (vs)
• Resigning clients at the bottom of your market as a positive growth strategy

Wrong Clients II

• Client is involved in unlawful or unethical activities
• Personality mis-match
• Client is beneath your growing fee structure
• Client stops you from attracting the right people/talent/associates