BUILDING RELATIONSHIP MANAGEMENTVELI BAHCECI
Relationship Development Strategies
RELATIONSHIP DEVELOPMENT STRATEGIES
1. Core Service Provision
2. Switching Barriers
3. Relationship Bonds
CORE SERVICE PROVISION• Perceived Service Quality• Perceived Value• Satisfaction
SWITCHING BARRIERS• Customer Inertia• Switching Costs
WHY SOME DISSATISFIED CUSTOMER STAY WITH THE FIRM?
HOW CAN FIRMS RETAIN THE CUSTOMERS?
SWITCHING COSTS• Time Cost• Effort Cost• Searching Cost• Setup Cost• Learning Cost• Contract Cost
RELATIONSHIP BONDS• Berry and Parasuraman
LEVELS OF RELATIONSHIP BONDS
• Financial• Social• Customization• Structural Bonds.
LEVEL 1 – FINANCIAL BONDS• Volume and frequently rewards;
• Lower prices for bigger volume• A more frequent purchase
• Bundling and cross selling
• Stable pricing
LEVEL 2 – SOCIAL BONDS• Personal Relationships• Continuous Relationships
SOCIAL BONDS AMONG CUSTOMERS
• Health clubs• Educational settings• Social groups and service environments etc.
LEVEL – 3: CUSTOMIZATION BONDS
• Customer Intimacy• Anticipation / Innovation• Mass Customization
LEVEL – 4: STRUCTURAL BONDS