Relationship Management

AAA

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.

INVESTOPEDIA EXPLAINS 'Relationship Management'

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.

RELATED TERMS
  1. Relationship Manager

    A professional who works to improve a firm's relationships with ...
  2. American Customer Satisfaction ...

    An index that provides information on how satisfied U.S. consumers ...
  3. Customer

    An individual or business that purchases the goods or services ...
  4. Relationship Banking

    A strategy used by banks to enhance their profitability. They ...
  5. Asset Management

    1. The management of a client's investments by a financial services ...
  6. Customer Relationship Management ...

    The principles, practices, and guidelines that an organization ...
RELATED FAQS
  1. What factors go into determining a business's shutdown point?

    Three main factors help determine a business' shutdown point: how much variable cost goes into producing a good or service, ... Read Full Answer >>
  2. How do interpersonal skills influence a business culture?

    Interpersonal skills influence business cultures because they affect job performance, which in turn helps to decide the outcome ... Read Full Answer >>
  3. How is minimum transfer price calculated?

    A company that transfers goods between multiple divisions needs to establish a transfer price so that each division can track ... Read Full Answer >>
  4. When would a vendor care about its accounts payable turnover ratio?

    Vendors can act as suppliers or manufacturers, so they must pay attention to accounts payable and accounts receivable. An ... Read Full Answer >>
  5. What are key factors that are generally considered in demographic studies conducted ...

    Key demographic factors that a company might examine to assess a potential market and more effectively target potential customers ... Read Full Answer >>
  6. What are some examples of debit notes in business-to-business transactions?

    Debit notes are a form of proof that one business has created a legitimate debit entry in the course of dealing with another ... Read Full Answer >>
Related Articles
  1. Mutual Funds & ETFs

    Active Management: Is It Working For You?

    There are guidelines to be followed when comparing an actively-managed investment strategy with a benchmark.
  2. Professionals

    Be A One-Stop Shop For Your Clients

    Offering comprehensive financial services can bring in business, but coordination is the key to success.
  3. Professionals

    Preparing For A Career As A Portfolio Manager

    Find out what it takes to win a spot in one of the most coveted financial careers.
  4. Entrepreneurship

    10 Ways to Loosen Up Your Cash Flow

    Cash flow is king. Here are a few ways to fatten it up.
  5. Fundamental Analysis

    How Are eBay And Amazon Different?

    Learn how eBay differs from Amazon in the e-commerce environment for both buyers and sellers, and understand why each operates under a specific model.
  6. Investing Basics

    How Southwest Airlines Has Won Over Travelers

    Understand what Southwest Airlines' competitive advantages are and how they manage to edge out other airlines.
  7. Professionals

    Why Advisors Should Focus on Relationships

    Successful financial advisors share a secret: It's about the people, not the numbers.
  8. Economics

    What's Involved in Customer Service?

    Customer service is the part of a business tasked with enhancing customer satisfaction.
  9. Entrepreneurship

    Cold Calling Vs. Networking

    Why networking is taking over from cold calling as the best way for financial advisors to grow their client base – and where cold calling fits in.
  10. Professionals

    Tips for Breaking the Ice with New Clients

    Tips and methods to ensure a successful start to client/advisor relationships.

You May Also Like

Hot Definitions
  1. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  2. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  3. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  4. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  5. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  6. Current Account Deficit

    A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!