RELATIONSHIP MARKETING

3. Accountable Marketing
One of the ways for companies to remain competitive is to provide - At this level, the salesperson voluntarily contacts the customer
superior customer service. This, in essence, is relationship marketing- to ensure that the product is in perfect condition and asks if the
a company builds customer loyalty by making customer satisfaction its product met the customer's expectations.
top priority. - Also, the salesperson encourages the customer to provide
suggestions on how to improve the product or service.
Relationship Marketing
- is the process of building and maintaining profitable customer 4. Proactive Marketing
relationships by delivering superior customer value and - The company works closely with a group of regular customers
satisfaction, thus, brand loyalty is ensured. When customers who provide constructive feedback for the improvement of the
are satisfied, it is more likely that they will become loyal product or service. This group is a big help in the development
customers because they will keep on patronizing the brand. of new products or services.

A key factor in relationship marketing is customer loyalty or brand 5. Partnership Marketing

loyalty. This arises when a customer has had several positive - In the final level, the company has already built a loyal group
experiences with the products and services of the company. Thus, the of customers that can help in improving its performance and
customer is motivated to continue supporting the company and offerings.
patronizing its products and services. Customer loyalty tends to
persist despite the actions of the company or changes in the business Building Customer Value
environment.
Customer Value
5 Levels of Relationship Marketing - is the satisfaction derived from what a customer may
experience or is expected to experience by choosing a
Customer loyalty is founded on excellent customer services. The five particular action relative to the cost of that action.
levels of relationship marketing define the levels of interaction - The action can be a purchase, a visit, an order, or a sign-up.
between the customer and the company. It is also a guide for The cost refers to anything that can be given up to receive the
improving customer satisfaction. desired product or service which can be in the form of money,
time, knowledge, data, or others. For example, when a
1. Basic Marketing customer buys an iPhone, he or she may immediately feel a
- This is also called "direct sales", sense of satisfaction relative to the price he or she has paid to
- and is the most basic level of interaction between the company get it.
and the customer. In basic marketing, a salesperson takes
charge of selling the products or services to consumers. The creation of customer value does not rely on marketing alone.
It encompasses other functions such as:
2. Reactive Marketing a. sourcing, e. human resource services,
- The transaction moves to a higher level because the b. operations, f. administration,
salesperson tells the customer that he or she can be contacted c. processing, g. finance, and
to answer any inquiry about the product or service. d. communication, h. accounting.
These functions directly or indirectly affect customer value because a Types of Customers
product or service will not reach the end users without any of them.
4 Types of Customers
Levels of Customer Value (based on projected customer retention and loyalty to the brand)

The Levels of Customer Value 1. Strangers

- indicate what the consumers expect and do not expect from - are customers whose needs do not fit the offerings of the
their purchase decisions. company. The company does not need to invest and exert
effort to win them.
1. Basic and Expected Levels
- These levels include the basic requirements for conducting a 2. Butterflies
business. For instance, restaurants are expected to have a - as the name implies, are not loyal to a specific brand because
spacious dining area and clean tables and utensils. If these they keep on looking for the best deals which may lead to
requirements are not met by the business, it cannot provide patronizing other brands.
high-quality customer value. - The company can enjoy profits from these customers only for
a short period of time.
2. Desired Customer Value
- This involves what the customers want from the purchase or 3. True Friends
service experience. This is the first opportunity for a business - have needs that match the offerings of the company.
to get ahead of the competition. For example, a retail shop can - They make repeat purchases and patronize the brand so long
provide friendly and helpful staff who can assist the customers as it satisfies their needs. The company must invest in these
in making the right purchase. customers and strengthen its relationship with them.

3. Unanticipated Customer Value 4. Freeloaders

- It pertains to an unexpected purchase or service experience - are loyal but not profitable because of the limited fit between
that may go beyond the desire of customers. For example, in a their needs and the offerings of the company. For example, a
gasoline station, the gasoline boy cleans the car windows after few customers of a salon patronize its services regularly. It
filling up the customer's gasoline tank without an extra charge. cannot generate enough profit to sustain the maintenance
costs but it will earn only if it raises the prices of its services.
Relationship Development Strategies
Customer Service in the Philippine Business Enterprise
Recent research has shown that loyal customers prove to be more
profitable than ordinary customers. This is the reason why companies The success of our homegrown companies lies not simply on their
are challenged to maintain customer loyalty Companies should offerings but also in their customer service. Local businesses now
practice the following relationship development strategies to retain utilize customer service tools that fit our customer-oriented culture and
loyal customers: extensive technology usage.

1. Communicate with customers frequently and effectively. 1. Customer Hotline

- It is important to always get in touch with customers through e- - most companies provide this so that customers can call for
mail and social networking sites to sustain brand recall. Also, inquiries, concerns, and technical support. For example,
they should be provided with various means to give immediate customers can call PLDT to ask for assistance concerning
feedback, (such as online customer surveys, so companies their faulty Internet connection. The customer service
can promptly respond to them. representative (CSR) can provide a step- by-step guide on
how to troubleshoot the problem or schedule a visit from a
2. Offer customer rewards company technician, depending on the issue at hand.
- Customer loyalty programs, which include special discounts,
perks and freebies, may work well for various types of 2. Email and SMS
products and services. These encourage consumers to remain - help businesses communicate with their clientele more easily
loyal to the brand because they are rewarded for their as most consumers regularly check their inboxes. Online store
patronage. BeautyMNL sends texts and emails from the moment an order
is placed until it is on its way to the customer. This way, the
3. Conduct special events and provide sponsorships shopper can keep track of his or her purchase and contact the
- Companies can hold or sponsor parties, concerts, contests, company immediately if it does not arrive on time.
and the like to boost interaction among loyal customers and
company representatives. 3. Social Networking Sites
- aside from their primary function of connecting people, have
4. Enhance customer service become a channel for netizens to ask for customer support.
- Some companies outsource their customer services to third- Globe Telecom promptly responds to inquiries and complaints
party organizations to cater to complaints and inquiries, on Facebook and Twitter and redirects the customer to the
promote their latest offerings, and provide technical support. private messaging system of the site for further assistance.

5. Utilize languages to reach a wider customer base 4. Live Chat Support

- Marketers can create promotional materials in different - facilitates real-time correspondence between the customer
languages to cater to specific regions. Consumers can also and the company representative. Real estate developer
now choose the language they would like to use to Camella and payment service provider Dragonpay are some of
communicate with customer service representatives the companies that employ this tool.
 5. Creating Mobile Applications 2. Technology
- Given the amount of time that people spend using their - Technology companies have continuously updated their
smartphones, companies know that creating mobile technology, such as speeding up processes, to keep up with
applications increases their visibility and provides value to their digital breakthroughs. In a study made by Constant Contact in
customers. The Bank of the Philippine Islands (BPI) created 2019, small scale businesses are now using mobile apps for
the BPI Mobile app to make banking more accessible for their many of their management activities such as scheduling, time
clients. Using the app, one can check the balance of his or her management, GPS mapping, accounting, and invoicing.
account, transfer funds, pay bills, inquire about foreign Samsung has a mobile wallet app to help smartphone users
exchange rates, locate a BPI branch or ATM, and conduct with bill payments and other money transactions. Globe and
other online transactions. Smart have also introduced apps for money transactions.

SERVICE MARKETING 3. Banking & Finance

- Among the improvements brought about by technology to
Trends in Mobile Computing banks and financial institutions in the Philippines are online
and mobile banking. Online banking uses a desktop computer
Mobile technology, particularly mobile applications, has redefined the to access the bank's website while mobile banking uses an
meaning of customer service in many industries. It has improved how app to do transactions with a smartphone or tablet. The Bank
we avail of transportation services through apps like Grab. It has also of the Philippine Islands and Banco de Oro both have online
enabled customers to explore dining options through Zomato and Yelp and mobile banking apps. Banks also have automated teller
as well as organize their travels through Airbnb and TripAdvisor. machines (ATM). However, to avail of online and mobile
banking services, customers must first visit a bank branch and
Five industries have embraced technology and have prioritized open an account. Once they secure an account, they can
technological improvements, such as developing apps and digital proceed with their online or mobile banking transactions.
tools, to remain competitive. - However, mobile and online banking are different from a fully
operated digital bank, which does not have a physical branch
1. Media & Entertainment and all transactions are done over the internet. One example
- Former subscribers of cable television are now using is ING Philippines, ING is a Dutch financial service company
broadband internet and streaming services like Netflix to watch which started its operations in the Philippines in 1997, In 2019,
movies and TV series online. The popularity of online it introduced all-digital retail banking using a mobile app.
streaming services has affected some cable channels like
HBO. To compete, HBO Max and Disney acquired the 4. Healthcare
exclusive rights to distribute some hit TV series and movies on - Several companies in the US took advantage of technology to
Netflix after they expire in 2020 and 2021. provide better services in healthcare. One of the best
- Spotify has a huge selection of music in all genres. YouTube is healthcare mobile apps is Heal. It provides access to doctors
a video and music app which has been downloaded a billion in two hours or less on any day. This homecare app offers a
times worldwide in Google Play Store. more personalized service and provides a complete package
from booking to billing as well as a clinical care plan. It also
supports medical history and records on the Apple Health app.
 When patients need to be treated in hospitals or clinics, their can no longer be returned to the service provider for
health records are made available in the Heal On Call Ipad improvement.
app
4. Heterogenous/Variable
5. Education - The service in itself is the same but the way it is provided may
- The use of mobile apps in learning is considered a differ from time to time. A salesperson in a department store
revolutionary development in education. There are over a may be friendly and accommodating today but may also be
thousand apps that schools can choose from. One of the more rude and disrespectful the next day due to various reasons.
popular is Google Play Books, an app that offers educational
books, textbooks, and trade books, both fiction and non-fiction. Components of Service Marketing
Other apps similar to Google Play Books include Amazon
Kindle and Barnes and Noble Nook. The components of service marketing form the integrated service
management that is considered the ultimate satisfying delivery of a
Service service.
- is an act that is provided by a party that creates value and
provides benefits to the other party. Organizations that offer 1. Product and Its Elements
services include restaurants, hotels, airlines, banks, schools, - Some services only supplement the main product. The goal of
hospitals, and telecommunication companies, among others. the marketer is to create a bundle of supplementary services
that help increase the value of the main product. For example,
Characteristics of Service a high-quality appliance with superior quality has a higher
value if it comes with free delivery and extended warranty.
1. Intangible
- Service does not have a physical manifestation that can be 2. Time and Place
seen, touched, or described quantitatively. For customers to - The channel of distribution is crucial in service delivery. The
remember and rate the quality of the service, they must service should be rendered on time and in an appropriate
experience it. A vacation package in a resort will be venue or location. For example, fast food restaurants do not
remembered and rated by the customer based on the take a long time preparing and serving meals because they
accommodation, food, facilities, and staff. are expected to deliver speedy service. Also, these restaurants
must be located somewhere accessible and with high foot
2. Inseparable traffic.
- Service involves simultaneous production and consumption,
so there is an outright feedback. A haircut is done by the 3. Process
hairstylist and at the same time, the service is done to the - This is the method of service delivery. Marketers should be
customer. The customer can provide feedback to the hairstylist able to make the process of availing and receiving the service
during and after the service. convenient for the customers. For example, banks are now
offering online and mobile banking services for clients who
3. Perishable want to avoid the long lines in their branches.
- Because they are intangible, rendered services cannot be
stored or returned. A poorly done massage, once rendered, 4. Quality Service or Productivity
 - The kind and quality of service provided to a customer cannot
be separated from how the service is rendered. The quality of
a service is seen in how a service satisfies and meets the
needs, wants, and expectations of the customer. For example,
a couturier designs a wedding gown. The productivity rests on
how he or she transforms the raw materials, e.g., cloth, thread,
and embellishments into a gown on schedule.

5. People or Service Providers

- The ultimate proof of service quality manifests in the people
who provide the service to the customers. They must be
skilled, knowledgeable, friendly, accommodating, and
customer-oriented. For example, the quality of a dining
establishment does not depend on the food or the place alone.
The skills and attitude of servers towards the diners are also
taken into account.

6. Promotion
- Companies must use various means to inform the public about
the service and reach a wider customer base. This may be
through word-of-mouth and advertisements. For example, a
salon can benefit from customers recommending their services
to others as well as promo flyers distributed in crowded places.

7. Physical Evidence
- While a service is inherently tangible, there should still be
visible cues that will indicate its quality. For example, a hotel
with elegant furnishings and a beautiful landscape creates an
impression of quality service.

8. Price
- The price of service depends on its perceived quality. For
example, two salons in the same neighborhood with the same
services may have different price points because of many
factors. The first salon has a more sophisticated ambiance and
a group of well-known professional hairstylists, so they charge
more. The other one is an establishment with simple interiors
and self-taught hairdressers, so customers pay less for their
services.