The pitch: Customer relationship drives long-term business results

By MICHAEL CRANNA*

Every marketer knows that businesses are a lot more effective and deliver much better returns on investment when customers form long-term - hence profitable - relationships with the company's brand. But few know what drives and motivates customers to do that.

Sound relationships are more than business transactions, they're personal and emotional and have complex drivers that have to be understood before they can be used to nurture a long-term relationship.

If we're honest, many decisions are based on gut feel. But what are customers seeking from the relationships they have with businesses? What do businesses think customers want? And what do businesses deliver?

The first thing a consumer buys from a company is the brand value and its promise.

If the purchase process and the product don't meet the expectation created by the brand promise, the relationship isn't as strong as it should be because there's a level of disappointment for the consumer.

How many companies are concentrating on what their employees can do to enhance the relationships with their best customers? Or even identify who their best customers are?

According to Carlson Marketing Group's international research, the customer often seeks all those "soft" benefits: recognition; the feeling of being someone special; the human touch. But too often the business is concentrating on delivering technology-driven benefits such as websites and 24-hour access to call centres. Businesses often assume they know what customers want out of a relationship with that business. But they don't know.

The customer is savvy about business relationships and what they want from them. They know how loyalty programmes work. They know how people can be supported by technology to deliver those "soft" services, such as personal recognition. So don't try to fool them. Don't try to "bribe" them when they want special treatment and recognition.

Customers want authentic relationships. They seek the recognition, respect and intangibles that staff can deliver. A good relationship that is not valued is not a lasting one.

Companies that deliver excellent customer relationships understand the relationship from their and their customers' perspective. And they consider the role that major stakeholders can play in developing the relationship.

They have made the effort to know the customer, because relationships drive business results.

* Michael Cranna is Account Director, strategy, Carlson Marketing Group (NZ)

* The Pitch is a forum for those working in advertising, marketing, public relations and communications. We welcome lively and topical 500-word contributions.
Email Simon Hendery.