Relationship Marketing:Your “Secret Weapon” to Dramatically Increase

Membership and Retention

@RonRosenbergTwitter:

What Business Are You In?An Important Question:

Everything Seems So…Impersonal• ACD / Phone Trees• “Talking Head” Customer Service• Merge-Field Letters• Texting to Someone Next to You!• One-Size-Fits-All Responses

Customer Service CommunicationsDear Dreft,

It was great to receive a sample of your product in the hospital when I had my first baby a few weeks ago. Unfortunately, the coupon with it expired 9-30-04. I know the coupon is not good. Is the sample still safe to use?

The hospital was (name of hospital and location).

Thank you,Sallie

Customer Service CommunicationsThank you for sharing your disappointment with our product. Our goal is to produce high quality products that consistently delight our consumers and I’m sorry this wasn’t your experience. Please be assured I’m sharing your comments with the rest of our team.

Thanks again for writing.

P&G Team

Customer Service CommunicationsDear Dreft/Proctor and Gamble,

Thank you very much for your automated, prewritten reply that had absolutely nothing to do with my question. It certainly makes me feel like your company cares about its consumers when you take the time to send me an irrelevant answer to my question when I have taken the time to visit your website, find out how to contact you, write a letter and then read a reply.

You can be sure I will share this experience with the 2,500 women who visit my blog each week.

Sincerely,Sallie

Apps for Everything!

Apps for Everything!

Apps for Everything!

Apps for Everything!

3 Components of Customer Service• Mental• Physical• Spiritual

Customer Service Statistics• The #1 reason businesses lose customers is…

Customer Service Statistics• The #1 reason businesses lose customers is

perceived indifference

Customer Service Statistics• The #1 reason businesses lose customers is

perceived indifference• On average it costs 5 times more to get a new

customer than to keep an existing one

Lifetime Customer ValueAverage Plane Ticket: = $500Trips per Month: x 2 = $1,000Months per Year: x 10 = $10,000Number of Years: x 20 = $200,000

Lifetime Customer Value = $200,000

Lifetime Customer ValueAverage Amount of a Transaction

x Times Number of Transactions Per Year

= Subtotal: Annual Customer Revenuex Number of Years as a Customer

= Lifetime Customer Value

Why Is Lifetime Value Important?Lifetime Customer Value: = $200,000# People You Tell: x 10 = $2,000,000Months per Year: x 25 = $50,000,000

Why Is Lifetime Value Important?

1. Treat Me Very Well2. Find More People Like Me

Customer Service Strategy:• The key to providing outstanding service

every day is to establish an emotional attachment to Customer Satisfaction

• This approach is not manipulative as long as it’s done with integrity

Your Customer ExperiencesGood Experience• Respected• Taken Seriously• Wanted to Help• Feel Good

Bad Experience• Frustrated• Angry• Boiling Over• Homicidal

Two Important Rules:1. People move towards pleasure and away from pain.2. When people are in a heightened emotional state,

their bodies make a physiological impression of how they’re feeling and link it – unconsciously – with whatever made them feel that way.

Effective Communication Skills

1. Good vs. Bad Communications2. First Impressions3. Interest and Empathy

Why Is Rapport So Important?1. People do business with people they like2. People do business with people who are like them

Three Ways to Build Rapport

1. Common Experience2. Matching, Pacing, Leading3. Representational Systems

Common Experience• Hobbies• Activities• Children• Music• Food

• Home Town• Schools• Employers• Common Friends• Travel Destinations

Matching, Pacing, Leading• Voice Tone• Tempo• Inflection• Breathing

• Movement• Rhythm• Posture• Acknowledgement

Representational Systems

1. We interpret the world through our senses2. People have different ways of processing

information

Representational Systems• Visual• Auditory• Kinesthetic

Visual Representation• I see what you mean• That’s becoming clearer• Can you draw me a map?

Auditory Representation• That rings a bell• Tell me how to get there• I hear what you’re saying

Kinesthetic Representation• That feels right• Let me try it myself• I have to walk this off…

Representational Systems• Understand the Preference• Frame the Information• Communicate in the Right

Language

Relationship Marketing Examples• Newsletters• Loyalty Programs• Mailing Lists & Special Offers• Personal Relationships

Newsletters

Loyalty Programs

Loyalty Programs

Loyalty Programs

Loyalty Programs

Mailing Lists & Special Offers

Personal Relationships

Personal Relationships

Personal Relationships

Personal Relationships

Additional Tools You Can Use

• Video E-Mail Messages• Personal Cards

Video E-Mail Messages

Personal Cards

Personal Cards

Personal Cards

Personal Cards

Bonus Marketing Strategy:

Take Action

Chinese Proverb:A hungry man can sit on his front porch for a long time

waiting for a roast duck to fly into his mouth.

What’s Your “Big Aha”?

Relationship Marketing• Get More Members• Increase Revenue• Have More Fun!!