The Definition of Marketing Series:Relationship Marketing. Learn how to use relationship marketing to improve your firm's performance. Relationship marketing is also a key factor underpinning success in social media marketing as it builds engagement with customers. For more information go to: http://hausmanmarketresearch.org

1. DEFINITION OF MARKETING SERIES Angela Hausman, PhD http://hausmanmarketresearch.org

2. DEFINITION OF MARKETING SERIES Relationship Marketing – Fundamentals of Social Media Marketing Angela Hausman, PhD http://hausmanmarketresearch.org

3. What is Relationship Marketing ? Relationship marketing is a strategy designed to foster customer loyalty, interaction and long-term engagement. This customer relationship management (CRM) approach focuses more on customer retention than customer acquisition.* *http://searchcrm.techtarget.com/definition/relationship-marketing Angela Hausman, PhD http://hausmanmarketresearch.org

4. How is Relationship Marketing Different ? Angela Hausman, PhD http://hausmanmarketresearch.org

5. How is Relationship Marketing Different ? Long Term Focus Angela Hausman, PhD http://hausmanmarketresearch.org

6. How is Relationship Marketing Different ? Long Term Focus Customer Satisfaction over Sales Angela Hausman, PhD http://hausmanmarketresearch.org

7. How is Relationship Marketing Different ? Long Term Focus Customer Satisfaction over Sales One on One Marketing Angela Hausman, PhD http://hausmanmarketresearch.org

8. How is Relationship Marketing Different ? Long Term Focus Customer Satisfaction over Sales One on One Marketing Understanding Customers over Predicting Angela Hausman, PhD http://hausmanmarketresearch.org

9. How is Relationship Marketing Different ? Long Term Focus Customer Satisfaction over Sales One on One Marketing Understanding Customers over Predicting Retention Angela Hausman, PhD http://hausmanmarketresearch.org

10. How is Relationship Marketing Different ? Long Term Focus Customer Satisfaction over Sales One on One Marketing Understanding Customers over Predicting Retention Data Driven Angela Hausman, PhD http://hausmanmarketresearch.org

11. What Relationship Marketing is NOT. Angela Hausman, PhD http://hausmanmarketresearch.org

12. What Relationship Marketing is NOT. Data mining Angela Hausman, PhD http://hausmanmarketresearch.org

13. What Relationship Marketing is NOT. Data mining Metrics Angela Hausman, PhD http://hausmanmarketresearch.org

14. What Relationship Marketing is NOT. Data mining Metrics Managing customers Angela Hausman, PhD http://hausmanmarketresearch.org

15. Who Gains Value in RM ? Angela Hausman, PhD http://hausmanmarketresearch.org

16. Who Gains Value in RM ? Companies Angela Hausman, PhD http://hausmanmarketresearch.org

17. Who Gains Value in RM ? Companies Gaining new customers is 5 times more expensive than retaining existing customers Angela Hausman, PhD http://hausmanmarketresearch.org

18. Who Gains Value in RM ? Companies Gaining new customers is 5 times more expensive than retaining existing customers A 5% increase in customer retention = 25-85% increase in profits (NPV) Reichheld and Sasser (1990) Angela Hausman, PhD http://hausmanmarketresearch.org

19. Who Gains Value in RM ? Companies Gaining new customers is 5 times more expensive than retaining existing customers A 5% increase in customer retention = 25-85% increase in profits (NPV) Reichheld and Sasser (1990) Customers are more loyal Angela Hausman, PhD http://hausmanmarketresearch.org

20. Who Gains Value in RM ? Companies Gaining new customers is 5 times more expensive than retaining existing customers A 5% increase in customer retention = 25-85% increase in profits (NPV) Reichheld and Sasser (1990) Customers are more loyal Customers spread positive word of mouth Angela Hausman, PhD http://hausmanmarketresearch.org

21. Who Gains Value in RM ? Companies Gaining new customers is 5 times more expensive than retaining existing customers A 5% increase in customer retention = 25-85% increase in profits (NPV) Reichheld and Sasser (1990) Customers are more loyal Customers spread positive word of mouth Often more expedient and effective when serving customers. Angela Hausman, PhD http://hausmanmarketresearch.org

22. Who Gains Value in RM ? Angela Hausman, PhD http://hausmanmarketresearch.org

23. Who Gains Value in RM ? Customers Angela Hausman, PhD http://hausmanmarketresearch.org

24. Who Gains Value in RM ? Customers Comfort Angela Hausman, PhD http://hausmanmarketresearch.org

25. Who Gains Value in RM ? Customers Comfort Sense of belonging/ community Angela Hausman, PhD http://hausmanmarketresearch.org

26. Who Gains Value in RM ? Customers Comfort Sense of belonging/ community More effective Angela Hausman, PhD http://hausmanmarketresearch.org

27. Relationship Marketing = Social Media Marketing Angela Hausman, PhD http://hausmanmarketresearch.org

28. Relationship Marketing = Social Media Marketing Require engagement Angela Hausman, PhD http://hausmanmarketresearch.org

29. Relationship Marketing = Social Media Marketing Require engagement Focus on the customer Angela Hausman, PhD http://hausmanmarketresearch.org

30. Relationship Marketing = Social Media Marketing Require engagement Focus on the customer Collaborative Angela Hausman, PhD http://hausmanmarketresearch.org

31. Relationship Marketing = Social Media Marketing Require engagement Focus on the customer Collaborative Integrates across marketing, sales, customer service, technology, operations management … Angela Hausman, PhD http://hausmanmarketresearch.org

32. Relationship Marketing = Social Media Marketing Require engagement Focus on the customer Collaborative Integrates across marketing, sales, customer service, technology, operations management … People, Processes, Technology Angela Hausman, PhD http://hausmanmarketresearch.org

33. How Can This Help You Succeed ? Angela Hausman, PhD http://hausmanmarketresearch.org

34. How Can This Help You Succeed ? Structural Issues Angela Hausman, PhD http://hausmanmarketresearch.org

35. How Can This Help You Succeed ? Structural Issues Cross functional teams Angela Hausman, PhD http://hausmanmarketresearch.org

36. How Can This Help You Succeed ? Structural Issues Cross functional teams Management support for customer focus Angela Hausman, PhD http://hausmanmarketresearch.org

37. How Can This Help You Succeed ? Structural Issues Cross functional teams Management support for customer focus Total quality management Angela Hausman, PhD http://hausmanmarketresearch.org

38. How Can This Help You Succeed ? Structural Issues Cross functional teams Management support for customer focus Total quality management Employee empowerment Angela Hausman, PhD http://hausmanmarketresearch.org

39. How Can This Help You Succeed ? Structural Issues Cross functional teams Management support for customer focus Total quality management Employee empowerment Employee satisfaction Angela Hausman, PhD http://hausmanmarketresearch.org

40. How Can This Help You Succeed ? Measurement Issues Angela Hausman, PhD http://hausmanmarketresearch.org

41. How Can This Help You Succeed ? Measurement Issues Databases Angela Hausman, PhD http://hausmanmarketresearch.org

42. How Can This Help You Succeed ? Measurement Issues Databases Develop appropriate metrics Angela Hausman, PhD http://hausmanmarketresearch.org

43. How Can This Help You Succeed ? Measurement Issues Databases Develop appropriate metrics Track retention Angela Hausman, PhD http://hausmanmarketresearch.org

44. How Can This Help You Succeed ? Measurement Issues Databases Develop appropriate metrics Track retention Model defection Angela Hausman, PhD http://hausmanmarketresearch.org

45. How Can This Help You Succeed ? Measurement Issues Databases Develop appropriate metrics Track retention Model defection Customer Lifetime Value Angela Hausman, PhD http://hausmanmarketresearch.org

46. More questions? Check out other videos in The Definition of Marketing video glossary series See the definition of essential marketing terms and phrases at: http://www.MarketingThatWorks.TV