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Relationships & Profits
This document provides an overview of relationship marketing strategies presented by Lisa Dennis, president of Knowledgence Associates. The presentation covers defining relationship marketing, understanding the anatomy of business relationships, relationship stages, engagement options, strategies for building relationships, tactics for executing strategies, and benchmarking relationship performance. The goal is to help organizations transform customer insights into knowledge that allows them to understand customers and build long-term relationships.
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Relationships & Profits
- 1. L I SA D E N N I S , P R E S I D E N T Building Stronger Relationships, Building Stronger Profits Workbook Copyright 2015, Knowledgence Associates
- 2. Today’s Presenter Lisa Dennis,President of Knowledgence Associates, brings over twenty-five years of marketing and sales to client engagements. She has hands-on experience with both the marketing and selling of business-to-business and business- to-consumer products and services. The focus of Knowledgence Associates is the transforming of marketing, sales, and customer service information into customer knowledge. That transformation enables clients to truly “see the world through the customers’ eyes.” The firm’s consulting practice includes marketing strategy, marketing campaign design & execution, value proposition development, relationship and partner marketing, customer service assessment programs, sales effectiveness assessments, and sales & service training. Copyright 2015, Knowledgence Associates
- 3. Knowledgence Clients Copyright 2015,Knowledgence Associates
- 4. Agenda Relationship Marketing, Selling Anatomy of a business relationship Relationship Stages Engagement Options Strategies to Build Tactics to Execute Benchmarking & Assessing Copyright 2015, Knowledgence Associates
- 5. Relationship Marketing, Sales& Service Definition: A set of strategies and processes that enables an organization to identify, acquire, retain, and nurture profitable customers by building and maintaining long-term relationships with them. Activities aimed at: • Building customer loyalty (winning and keeping customers) • Providing value to all parties involved in the relationship • Demonstrating customer knowledge and understanding Key Aspects: • Strategic approach • Tactics aimed at 1-to-1, 1-to-few • Process oriented and cross-functional • Value-creating for buyer and seller • Focus is building relationships over time • Relationships can be differentiator in highly competitive markets • Must have both qualitative & quantitative measures Copyright 2015, Knowledgence Associates
- 6. Relationship Marketing, Sales& Service What it is: • Moving a target along the RM continuum • Relationship has define-able stages • Marketers and sellers meet targets “where they are” • Blend-able with other marketing and sales approaches • Relies on internal partnership of marketing and sales organization What it isn’t: • Transactional • Short-term • Stand-alone • Marketing-only • Sales-only • Single campaign • Not a replacement for other marketing methods Copyright 2015, Knowledgence Associates
- 7. Inventory of RelationshipDevelopment Factor Meaning Awareness Pre- exchange, recognition, no interaction Exploration Testing period, search and trial activities, determine compatibility Expansion Increase in derived benefits, interdependence, risk taking, testing & reaffirming perceptions Commitment Achieved value, satisfaction, lower focus on alternatives Dissolution Can occur at any stage in the relationship development process Enhancers Communication, Cooperation, Conflict Resolution Source: Inventory of Relationship Development, Dwyer, Shurr and OhCopyright 2015, Knowledgence Associates
- 8. P E RS O N A L I Z I N G A N E M A I L S E L D O M A R E L A T I O N S H I P M A K E S . Anatomy of a Business Relationship Copyright 2015, Knowledgence Associates
- 9. Real Business Relationships: FactorMeaning Bi-directional 2 way response, mutual awareness Require behavior changes In tangible and intangible ways Benefit both parties Value offsetting costs of participation Interactive Exchange of information content Changeable over time Iterative – leading to increased efficiency, convenience, comfort Trust-based Both parties act in mutual interest Ultimately Unique Real relationships are not 1-to-many or 1–to-few. So programs have to feel 1-to-1 even no matter “how” you deliver them Copyright 2015, Knowledgence Associates
- 10. Relationships are ona Continuum - Discrete - No history - No defined future - Limited communication - Narrow content - Every interaction is “new” - Connected - Past transactions - Future transactions - Repeated, related communication - Broad content - Interactions build over time Transactional Collaborative Copyright 2015, Knowledgence Associates
- 11. Effective Relationship Marketing/Selling •Communicating with the account / individual “where they are”. • Understanding how needs/desires change as the relationship stages change. • Delivery of marketing/sales/service activities tailored to fit that path. • Assessing/knowing what stage the account/individual is in • Deciding the optimal mix of marketing / sales / service activities at stage (1 size does not fit all) • Executing the appropriate activities based on stage and on strategy (acquisition, or expand the footprint, retention) Requires: Copyright 2015, Knowledgence Associates
- 12. F I RS T B A S E , S E C O N D B A S E , A N D T H I R D B A S E S T I L L C O U N T ! Relationship Stages Copyright 2015, Knowledgence Associates
- 13. Considerations for Selecting/DefiningStages • Stages should reflect exterior reality, not internal desire • Buying cycle ≠ the relationship cycle • Actual progression of a relationship in your industry/sector • Trusted advisor status ►►► what are the stages of the buyer’s experience to get there • IMPACT - The language we use to name and define each stage impacts the application of appropriate marketing strategy and tactics for each stage Relationship Definitions Stages Copyright 2015, Knowledgence Associates
- 14. Relationship Stages Co-Creator Champion Collaborator Customer Explorer Not every Relationship Reaches EveryStage Copyright 2015, Knowledgence Associates
- 15. Relationship Stages -Definitions Explorer Customer Collaborator Champion Co-Creator Mutual awareness Attraction Pre-sale Highly exploratory Initial discovery Potential needs Expectations Applicable expertise Significant interaction Validation of the client's decision Industry knowledge Client knowledge Customer satisfaction Build Trust Mutual goals realized Intimate dealings Mutual credibility Increased Stability Revenue Growth Internal and external introductions References & Testimonials Relationship extends Overt supporter Willingness to represent to Other internal buyers, External professional network Deeper loyalty Collaboration Significant trust Aspirational in nature Bigger than the sum of individual relationships Embedded within respective businesses Cooperate at a highly strategic level, Driving mutual innovation Copyright 2015, Knowledgence Associates
- 16. Relationship Stages -Definitions Explorer Customer Collaborator Champion Co-Creator Mutual awareness Attraction Pre-sale Highly exploratory Initial discovery Potential needs Expectations Applicable expertise Significant interaction Validation of the client's decision Industry knowledge Client knowledge Customer satisfaction Build Trust Mutual goals realized Intimate dealings Mutual credibility Increased Stability Revenue Growth Internal and external introductions References & Testimonials Relationship extends Overt supporter Willingness to represent to Other internal buyers, External professional network Deeper loyalty Collaboration Significant trust Aspirational in nature Bigger than the sum of individual relationships Embedded within respective businesses Cooperate at a highly strategic level, Driving mutual innovation Copyright 2015, Knowledgence Associates
- 17. Relationship Stages -Definitions Explorer Customer Collaborator Champion Co-Creator Mutual awareness Attraction Pre-sale Highly exploratory Initial discovery Potential needs Expectations Applicable expertise Significant interaction Validation of the client's decision Industry knowledge Client knowledge Customer satisfaction Build Trust Mutual goals realized Intimate dealings Mutual credibility Increased Stability Revenue Growth Internal and external introductions References & Testimonials Relationship extends Overt supporter Willingness to represent to Other internal buyers, External professional network Deeper loyalty Collaboration Significant trust Aspirational in nature Bigger than the sum of individual relationships Embedded within respective businesses Cooperate at a highly strategic level, Driving mutual innovation Copyright 2015, Knowledgence Associates
- 18. Relationship Stages -Definitions Explorer Customer Collaborator Champion Co-Creator Mutual awareness Attraction Pre-sale Highly exploratory Initial discovery Potential needs Expectations Applicable expertise Significant interaction Validation of the client's decision Industry knowledge Client knowledge Customer satisfaction Build Trust Mutual goals realized Intimate dealings Mutual credibility Increased Stability Revenue Growth Internal and external introductions References & Testimonials Relationship extends Overt supporter Willingness to represent to Other internal buyers, External professional network Deeper loyalty Collaboration Significant trust Aspirational in nature Bigger than the sum of individual relationships Embedded within respective businesses Cooperate at a highly strategic level, Driving mutual innovation Copyright 2015, Knowledgence Associates
- 19. Relationship Stages -Definitions Explorer Customer Collaborator Champion Co-Creator Mutual awareness Attraction Pre-sale Highly exploratory Initial discovery Potential needs Expectations Applicable expertise Significant interaction Validation of the customer’s decision Deeper industry knowledge Deeper customer knowledge Customer satisfaction Build Trust Mutual goals realized Intimate dealings Mutual credibility Increased Stability Revenue Growth Internal and external introductions References & Testimonials Relationship extends Overt supporter Willingness to represent to Other internal buyers, External professional network Deeper loyalty Collaboration Significant trust Aspirational in nature Bigger than the sum of individual relationships Embedded within respective businesses Cooperate at a highly strategic level, Driving mutual innovation Copyright 2015, Knowledgence Associates
- 20. Y O UC A N ’ T M A N A G E W H A T Y O U D O N ’ T M E A S U R E Benchmarking & Assessing Copyright 2015, Knowledgence Associates
- 21. Picking Your Targets Which relationships in the account are worth the investment of resources in tailored relationship marketing, selling and service? Not all accounts need (or deserve) RM Remember, it’s a overlay to existing sales, marketing and service efforts Consider role, recency, access to budget, tenure in organization Copyright 2015, Knowledgence Associates
- 22. Understanding Targets andStages - Who are the targets? - Identified Accounts - Existing individual customers - Targeted new prospects - What imperatives do they have? - What do they typically respond to? - What stage are they at? Move them from a homogenous group to like groupings of relationships: 1. Select programs for the right targets AT THE STAGE THEY ARE IN. 2. Deliver a stream of marketing, sales and service activities that are stage appropriate and drive the relationship forward to the next stage. Copyright 2015, Knowledgence Associates
- 23. Assess What’s Relevant Copyright2015, Knowledgence Associates
- 24. Tracking the Relationship RELATIONSHIP MARKETING& SALES ACTIVITY RESULTS OCCUR OVER TIME. After benchmark, need to reassess on a periodic basis – quarterly or bi- annually. Way to gauge how your RM activities are moving the needle on the state of the relationship. PATIENCE IS KEY!! Copyright 2015, Knowledgence Associates
- 25. D O N’ T A S S U M E T H A T I W A N T T O D O W H A T Y O U W A N T T O D O . Engagement Options Copyright 2015, Knowledgence Associates
- 26. Key ‘Relationship’ Questionsto Ask Team/Peer Who else in the organization does the targeted relationship plug into? Rep/ Individual New sales rep? Or new player in the account, or both? What can be leveraged or captured from previous connections/relationships? Interaction How is the function interacting with other functions in the organization? Where do departments have to play together? Level What does the level of conversation need to be at each stage for this target? Value What relevant role value statements need to be communicated by stage with this target? Decision Role What role do they play in the decision making process that may impact messaging and approach? Copyright 2015, Knowledgence Associates
- 27. Engagement Types Relationship Marketing ,Sales & Service One-to-One One- to-Few Peer-to-Peer External Influencer Brand, Field, Corporate Marketing: One-to-Many Consider how your target typically engages – and make informed choices on the approach and the messages they want to hear. Copyright 2015, Knowledgence Associates
- 28. W I TH O U T A P L A N , A N Y R O A D M I G H T G E T Y O U T H E R E … O R I T M I G H T N O T . Strategies to Build Copyright 2015, Knowledgence Associates
- 29. Building Relationships isn’tEasy Barriers are inherent in the furthering of any business relationship Understand what the barriers are in your market or segment Take a look at any specific barriers by title or role Factor this into the selection of strategies you will apply to this target How will I overcome or leverage the barrier? Copyright 2015, Knowledgence Associates
- 30. Consider Potential Barriers BARRIERDescription C-Level Hard to engage. Work gets done below the C-Level. Key challenge to get regular access to these people. Finance Bi-directional relationship: Process (signature authority over others); and Commercial (possible opportunity in Finance).Also – have strong external consulting relationships that they go to for IT input Operations Bi-directional relationship: Process (signature authority or input over others); Commercial – (possible opportunity in Operations). Account vs. Individual Need to look at the relationship stages of both the overall account and the individuals. May not be at the same stage. Leverage changes New role within the same organization or moving to different department or division – difficult to leverage relationship in context of this type of change. Copyright 2015, Knowledgence Associates
- 31. Factoring a Barrierinto Strategy Copyright 2015, Knowledgence Associates
- 32. W H EN Y O U K N O W T H E “ W H A T ” , Y O U C A N P L A N T H E “ H O W ” Tactics to Execute Copyright 2015, Knowledgence Associates
- 33. Review/Consider Key Messages Makesure they are stage appropriate! Copyright 2015, Knowledgence Associates
- 34. Create a “Flow”of Tactics Copyright 2015, Knowledgence Associates
- 35. R E LA T I O N S H I P S T A K E W O R K . B U I L D I N G T A K E S T I M E . S T R O N G R E L A T I O N S H I P S = P R O F I T S Getting Started Copyright 2015, Knowledgence Associates
- 36. Building a RelationshipPlan Copyright 2015, Knowledgence Associates
- 37. S T AY T U N E D F O R A N O F F E R ! Questions? Copyright 2015, Knowledgence Associates
- 38. Knowledgence Offer 360 Degreesof the Customer Strategies & Tactics for Marketing, Sales and Service By Lisa Dennis, Charles Dennis and Lori Richardson Marketing, Sales and Customer Service are three disciplines that all overlap at the same point: the customer. All customer touch points should be integrated with each other, a theory that makes perfect sense in the abstract, but is hard to do in the reality. Presents strategies & tactics to keep the customer promise. Price: $20.00 plus shipping Available Today http://www.knowledgence.com/Ondemand.htm Copyright 2015, Knowledgence Associates
Editor's Notes
- #6 Key nuances to pay attention to as we work through this process: The view of the relationship we need to keep in mind is prospect / customer Challenge is managing the view from here, and balancing it so it doesn’t end up being mostly about us Strategy is important – tactics follow and lock with the RM strategy
- #7 So we are we ultimately trying to build with these accounts and individuals? satisfaction/experience, service quality, and communication, trust, loyalty, commitment That means that we have to recognize “where they are” i.e. what stage are they in – in our mutual relationship? We as marketers and sellers can set the stage and participate in that journey by tailoring our strategies & tactics to fit the relationship stage the prospect/customer is in, and earn their trust and commitment to move into the next stage. Everyone we deal with is at a different stage – and we need to think about the groupings of prospects and clients in each Relationship stage – and be able to address a 1—to-few approach by stage.
- #8 The basis of relationship marketing really started with research that defined the building blocks or a relationship. The key aspect of them as a whole is the b-directional nature of all of them. If you continue to participate, but the other part falters or stops, It can get stuck or frozen. We may keep communicating –hoping it will pass – but once the exchange slows or stops, the relationship Dissolves = unless we can work it back. Continuing to communicate with someone in the same cadence or vein when they have stopped is not a relationship enhancing move. So we need to refocus on the ”enhancers”. Use these areas can actually strengthen the original relationship to a better state than before. I’d add 2 more” Paying attention” and “Acknowledging the state” – even if you’re not in the state I want you in. Built on both past behavior and future promises
- #10 Orientation we need to have: Relationships are not 1 sided – seems obvious but many organizations view a relationship with a prospect when it doesn’t yet exist.
- #11 Even after a purchase, there are nuances to a relationship – running the gamut from pure transactional (low or no relationship beyond the actual purchase), to highly Collaborative, iterative, built over time – to get to “trusted advisor”. Becoming a trusted advisor in a real business relationship is just not about being the expert – it’s not even all about being a trusted advisor for others (though it helps). It’s about bringing to bear all of that to earn the status and for the customer to come to you expecting and participating that level of interaction. How we communicate with people along the continuum of these stages matters – and there are vast differences in what is appropriate and effective along the way. So we’re going to work through what is most appropriate for this sector and industry – and define the stages such that we can match them to the targeted accounts we want to build and grow the relationship to drive revenue over time. In particular –it’s important to understand that at the far right – collaborative state – all the communications and interactions are connected – like pieces of a quilt – to build the whole Relationship. That means that from day to day – that relationship and its status may ebb and flow. It’s a combination of all the positive, challenging, problems, resolutions, and insights, Recommitments that go with any relationship. So it isn’t static. Once you get to the end stage – you still have to monitor and work it.
- #12 The mantra of communication with targets “where they are” is an informing concept. You can’t move me, as a prospect, to D unless you know where I am starting? Am I at A or C? Your actions cue me to your understanding of me. If I’m at C – and you starting aiming A communication and behaviors At me – that tells me something. So we’re talking about “Pathing” of communications/content/interactions along the stages of the relationship to draw The target in – motivate them to participate (and I’m more likely to participate if you meet where I am, than force me to Come to where you want me to be). Starting point? Determining what stage the target(s) are in. Of my prioritized accounts for this quarter – where do each of them sit By stage?
- #14 First step we need to take is do define the stages for our relationship marketing program. Important to make sure that we use what fits for your targets – and now they interact with your company. So let’s look at and discuss some options. Then we can decide together what works to build our own relationship lifecycle.
- #23 An interesting question might be “Can we get targets to skip forward to a stage?” Do we have to take them through all the stages, one after the other? If we have no relationship at all to start – then the answer is yes. If the organization has a relationship with a peer of mine – but I do not – the urge to move me along More quickly is there. But I still have to cover all the stages. The time the target spends in each Stage may be shorter – but that depends on peer assistance, and the status of the account relationship. Again – an assessment that needs to be made up front in order to select the best mix of strategy and tactics.