Developing Better Relationships

Business and marketing relationships are often referred to in terms of marriage. The term was first used by Professor Ted Levitt in his HBR article 'After the sale is over'. The sale marked the consummation of the courtship after which the marriage begins. The relationship between business and customer and one business and another have also been analyzed in terms of stages of relationship building. Channel relationship between businesses often display features of channel dominance where one business dominates the others often for its own ends. Strategies can be developed to improve the situation for the smaller, less powerful businesses in the chain. Customer relationship management (CRM) can also be managed to benefit the customer. Amazon were the first to use relationship management software successfully. Now more and more online and offline businesses are developing CRM techniques profitably for both business and customer. The shift from subordination to intimacy is on.

The relationship does not end when the sale is made. Business relationships were once a transaction based relationship but RM and CRM methods are increasingly used to make the relationship lengthy and more intense with a stream of transactions between buyer and seller. Relationship management determines to an extent the quality of the 'marriage'. If it becomes and remains strained or troubled the relationship suffers and becomes tarnished and reputation suffers. As with marriage difficulties and marriage counsellors, businesses also have a range of alternatives to look to if their relationships hit the rocks. Business services and management consulting are two. Time with customers is important. Transaction marketing is dictated by supply and demand and the transactions are time-discrete. Relationship marketing emphasises building up knowledge of customers and their preferences and special requirements and selling not a product but a bundle of products each time as part of a stream. In taking better care of your customers you will avoid another problem identified by Levitt, that of 'marketing myopia', by familiarising yourself with their needs. If you know your customers well it may make it easier to overcome any difficulties. Strong business relationships will increase faith and give assurance especially when there is no coercion.