Relationship selling

From CEOpedia | Management online

Relationship selling - this is one of the sales methods that boils down to building strong customer relationships. Used very often in the sale of high quality items and individualised services. In addition, it is also used in long-term sales. In a business language it is also called a marketing process that involves educated employees, a trustworthy brand and the creation of a community of consumers who want to return to a particular place. In addition, under this action, gifts are often given to customers to keep them with a specific brand.

Trust and relationship selling

Trust in consumer sales is one of the most basic factors that develops over time. It is important in the case of direct sales. Usually people are much more reluctant towards direct sellers than e. g[1]:

  • buying products from websites
  • or catalogues sent to them by mail.

Therefore, it is important that each vendor inspires the right kind of trust. It can do this by, among other things, asking questions about customer needs or asking questions not necessarily related to sales.

Emotional Intelligence in relationship selling

Another basic assumption of relationship selling is to educate salespeople in such a way that they can adapt to each of their customers. For this reason, they shouldn't usually be insistent as they were with "hard sell tactics"; in the 1970s and 1980s. In connection with the above, the so-called Adaptive Selling Behaviour (ASB) was developed. It consists in the fact that sellers are required to adapt to sales situations depending on the characteristics that are strong for the customer they meet [2].

In the world of competition and dynamically changing offers of entrepreneurs, the emotional approach is very important. This is due to the fact that people no longer buy products themselves, but also emotions. For this reason, sellers must pay particular attention to the examination of their previous sales performances. Hence, they constantly improve their sales scenarios and try to play roles that are flexibly tailored to the specific type of customer[3].

Techniques of relationship selling

One of the most popular sales methods is stimulus response selling. It consists in the fact that the seller makes judgments, asks questions, takes action, uses audio-visual aids and demonstrates the product. On the other hand, the purchaser should express an interest or discouragement. In the event of a positive response, he will purchase the product [4].

Another important method is need satisfaction selling, which is mainly based on researching the consumer's needs and then applying the product to his subconscious in such a way that he thinks that it meets his expectations. Through constant stimulation of emotions and mind, sellers "decode"; their customers [5].

Examples of Relationship selling

  • Many companies have loyalty programs that reward customers for repeat purchases. For example, Starbucks offers customers rewards for buying coffee in the form of free drinks or points that can be used to purchase new items.
  • Many companies also use personalized customer service in order to build relationships with customers. For example, companies like Zappos have customer service representatives that provide personalized attention to customers in order to make sure their needs are met.
  • Companies also often use social media to build relationships with customers. For example, many companies have Twitter and Facebook accounts where they post information about their products and services as well as interact with customers.
  • Companies also use events to build relationships with customers. For example, Apple often holds events in their stores where customers can get a hands-on experience with their products and learn more about them.
  • Companies also use customer surveys to get feedback from customers about their experiences. This allows companies to get feedback on their products and services and make improvements accordingly.

Advantages of Relationship selling

Relationship selling has many advantages for businesses and customers. These advantages include:

  • Increased customer loyalty - Relationship selling helps to build customer loyalty by creating a trusting relationship between the customer and the company. This ensures that customers will return to the company for future purchases and services.
  • Improved customer service - Relationship selling helps the company to better understand the customer’s needs, allowing them to provide more personalized services. This leads to greater customer satisfaction and an improved customer experience.
  • Increased sales - By building relationships with customers, the company is more likely to make more sales as customers will be more likely to make repeat purchases.
  • Establishes a brand reputation - Relationship selling helps to build a good reputation as customers will be more likely to recommend the company to their friends and family. This leads to increased brand awareness and more customers.

Limitations of Relationship selling

Relationship selling is a powerful sales technique, however, it has certain limitations. These include:

  • The relationships that are developed with customers can be time-consuming and require a significant investment of resources.
  • The cost of long-term relationship building can be high and may not be financially feasible for smaller businesses.
  • It can be difficult to measure the effectiveness of the relationship selling since it is difficult to quantify the impact it has on customer loyalty and satisfaction.
  • Relationship selling can be difficult to implement in certain industries where customers are used to dealing with large companies, making it difficult for smaller firms to establish relationships.
  • Relationship selling is not always applicable to every customer and may not be the best strategy for certain customers.

Other approaches related to Relationship selling

Relationship selling is just one of the sales methods used to build strong customer relationships. Other approaches to relationship selling include:

  • Understanding the needs of customers: This involves getting to know the customer and their needs, in order to provide the best possible product or service.
  • Personalizing customer service: Customers should feel like they are valued and that their needs are met. This involves providing personalized customer service that adds value to the relationship.
  • Building trust: Trust between customers and businesses is essential for a successful relationship. This involves creating an environment of open communication and transparency.
  • Utilizing technology: Technology can help to streamline customer service processes and improve customer relationship management.
  • Creating loyalty programs: Customers should be rewarded for their loyalty. This could be in the form of discounts, freebies or other incentives.

In short, relationship selling is a marketing process that involves understanding the needs of customers, personalizing customer service, building trust, utilizing technology and creating loyalty programs. This helps to create a strong connection between businesses and their customers, which in turn leads to increased sales and customer retention.

Footnotes

  1. ↑ Poon P., Albaum G., Shiu-Fai Chan, 2012, p. 591-592
  2. ↑ Simintrias A., Ifie K., Watkins A., Georgas K., 2013, p. 419-428
  3. ↑ Wisker Z. L., Poulis A., 2014, p 32-52
  4. ↑ Ramon A, Scott A., 2017, p.3
  5. ↑ Ramon A, Scott A., 2017, p.3


Relationship selling — recommended articles
Customer loyalty — Customer benefits — Consumer orientation — Goals of marketing — Customer equity — Customer driven — Incentive marketing — Creative strategy — Concept selling

References

Author: Klaudia Urbańska

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