| Lesson 10 || Relationship management stage |
| Objective || Describe the relationship management stage. |
Relationship Management Stage
In the old world, product brand was the primary means of exchanging key product information. In the new world, the information is far more complex, sometimes created by the end users in community settings such as threaded discussion groups,
and other times viewed as peer purchasing data.
In the past, the product was king. The primary influence of the purchasing decision was the product itself. In an e-enabled world, the information content and the relationship around the product carries a far more significant influence in the buying decision.
If the relationship is the primary influence of the buying decision, we should be able to answer the question, "What is a relationship?" Having a relationship means that you can answer the following four questions:
In an e-enabled world, the information content and the relationship with the product influences the buying decision more significantly than ever before.
Definition of Relationship Management
A strategy employed by an organization in which a continuous level of engagement is maintained between the organization and its audience. Relationship management can be between a business and its customers (customer relationship management) and between a business and other businesses (business relationship management).
Relationship management is a focus of the financial and investing industries as a way to identify potential cross-sales of products and services.
In addition, relationship management aims to create a partnership between the organization and its audience rather than consider the relationship merely transactional. Consumers who feel that a business responds to their needs are more likely to continue using the products and services that a business offers.
Additionally, maintaining a level of communication with consumers allows the business to identify potential sources of costly problems before they come to a head.
Do not underestimate the Baby Boomers
Compared to the digital-first Millennial generation, it is reasonable to presume that Baby Boomers (born between 1946 and 1965) are less inclined to shop
online. However, the Baby Boomers surveyed in fact shopped online just as frequently as the Millennials. Furthermore, the Baby Boomers on average spent more per transaction than either of the two other younger generation groups This generation was more likely to buy healthcare products, wine, household goods and appliances, categories which tend to have higher price points