What is Relationship Management
Relationship management is a strategy in which an organization maintains a continuous level of engagement with its audience. This management can happen between a business and its customers or between a business and other businesses. Relationship management aims to create a partnership between the organization and its audience, either customer or business, rather than consider the relationship merely transactional.
BREAKING DOWN Relationship Management
Relationship management involves any process or strategy used to build support for a business and its offerings and increase brand loyalty. Most often relationship building occurs at the customer level, but it is valuable at the business level as well. While a business may choose to hire a relationship manager to oversee these tasks, it may also integrate these duties with other positions, such as marketing or human resources.
Consumers who feel that a company is responsive to their needs are likely to continue using the products and services of that business. Additionally, maintaining a level of communication with consumers allows the company to identify potential problems before they come to a costly head.
Customer Relationship Management
Customer relationship management (CRM) focuses on building a solid rapport between a business and its customers. The communication will involve significant data and sales analysis and seeks to maintain the customer's interest in the company and its associated products. CRM can include marketing techniques and post-sale support.
Businesses will use written media to communicate including sales announcements, newsletters, and post-sale surveys. Video media communication ranges from commercials to tutorials try to build on the customer relationship experience.
Because it is more costly to acquire a new customer than it is to maintain a current customer, marketing is of great importance. Marketing allows the business to gauge consumers' interests and needs, and develop campaigns to increase their interest and loyalty. Involvement customer support helps to stimulate sales and provide post-sale support.
Business Relationship Management
Business to business relationships with vendors, suppliers, distributors, and other associates can also benefit from relationship building. For example, relationship management aides with dispute resolutions, contract negotiations, and cross-sale opportunities.
Just as with customer relationship management, business relationship management (BRM) is vitally important. It consists of behaviors that promote a positive and productive relationship between a company and its business partners. Furthermore, BRM seeks to build trust, solidify rules and expectations, and establish boundaries.