Sunday, November 29, 2009

Transaction vs Relationship

We can look at Marketing on two side, transaction view and relationship view.

Transaction view:
-Purpose of Marketing is to make a sale
-Sales is the result and measure of success
-Business is defined by its products and factories
-Objectives: to make the next sale
Relation view:
-Purpose of Markeing is to create a customer
-Sales is the beginning of replationship; profit is measure of success.
-Business is defined by its customer relationship
-Objectives : satisfy the customer you have by delivering by superrior value

These tell us the differents definitions of Marketing, related to customer relationship.
It makes sense to focus as much attention on customer retention as you do on customer acquisition.
Here is a topic about relationship marketing benefits.
According to customer relationship marketing experts, companies can increase revenue by 50% if they retain only 5% more of their customers.

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