Relationship Marketing: What It Is And
How To Make It Work For You
By Tom Egelhoff
 If you've read anything about marketing at
all you know that relationship marketing is nothing new. But
in recent years it has become more and more important to small
town business owners. Let me use my current hometown of Bozeman,
Montana as an example. Bozeman is a small town. About 25,000
people depending on whether or not you count the students at
Montana State University. When I moved to Bozeman about 7 years
ago the only name brand store that was here was K-Mart®.
Since that time, in fact in just the past three years, we've
received a Wal-Mart®, Target®, Old Navy®, Gap®,
Victoria's Secret®, Eddie Bauer® and Costco®. As
time passes I'm sure we'll be the proud home of many more and
it will be time for my wife and I to move to another small town
that doesn't have these retail behemoths.
Don't get me wrong. It's not that I'm against mass merchants
or don't appreciate a wide selection of merchandise. But the
whole purpose of this web site is to support the local business
owner. What good is it to work hard and support your community
only to have that money end up in New York or Japan or who know's
where?
Even in small towns the competition of small business can
be fierce. In small towns there is a smaller customer base and
retaining these people is truly the life blood of any company.
Every customer you lose to a Gap® or Wal-Mart® is a customer
that's very hard to earn back. And, as I'm sure you have all
heard before, it takes as least six times the cost to get a new
customer as it does to retain an old one.
What does the customer really want?
You might want to shout out SERVICE here. In my opinion you'd
be wrong. No one I know of goes to Wal-Mart® or K-Mart®
expecting to find exceptional service. That's not a slam of those
businesses. That's just not their purpose. They run mean and
lean with part time employees and strict cookie cutter procedures.
But something they do have is consistent service and that's
one of the most important aspects of a successful business. The
best example I can think of in this case is McDonalds®. Can
you tell me the very best McDonalds you ever visited? The Big
Macs were like New York steaks and the drinks tasted like fine
wine. Most people feel if you've seen one you've seen em all.
We go to McDonalds® pretty much knowing what to expect. There's
a good chance that a Big Mac in Rhode Island is very much the
same in Oregon.
Now, having said that let me add one more wrinkle to the mix.
Price and convenience will overcome a fair amount of bad service
and rude clerks or salespeople. We as customers will put up with
a lot not to have to drive extra miles or pay more for the same
product. For more on this see: Understanding
Why Customers Buy. also see
How To Advertise Against The Big Guys
And Win.
How do
you retain customers and keep them coming back
The answer to this question is know your customers better
than the competition and fill the needs they have. If you can't
do this then you are going to lose them to some other company.
It's that simple. Let's look at some ways to keep them coming
back to your place of business.
Many of you may remember the old TV sitcom "Cheers".
It was set in a neighborhood bar in Boston. At the start of the
show each week was the theme song. Which in part said, "You
wanna go where everybody knows your name." In short what
made this particular bar popular was that there was comfort there.
You were known, welcome and appreciated for who you are. No one
took into account the price of the drinks or the location. It
was the friendly feeling of the bar.
Now I know what you're saying. Hey, that's just a TV show.
The real world is different. Every small town has a bar like
Cheers. And every small town has a merchant that has built his
business by making the extra effort to get to know and make friends
with each and every customer. Not just appreciate their business
but truly make them a friend of the business. This doesn't mean
that you invite each one to your home to take them fishing every
weekend but in a business sense they are known and appreciated
by you for their business.
- Find ways to thank
your customers consistently for their business. Every time I take my car into a local
repair shop a thank you card shows up in the mail a few days
later. The cost is extremely low but the result is that I appreciate
that I'm appreciated by this business.
- Know what customers
buy and keep in touch with them about what interests them. When
I was a boy growing up in a small Illinois town. We had a neighborhood
grocery store. The owner would often phone my mother to let her
know that some high quality pork chops had arrived and "could
he" put some aside for her? I know what you're going to
say. I have way too many customers to keep up with that. No problem.
Your competitors will be happy to take care of that task for
you and put you out of business. You can know your customers
with computers and databases. Learn what they are and how to
use them. Let people know about products or services that interest
them.
- Let them know about
other changes in your business. Ever try a new food
and find you love it? Well, your customers want to know about
new products and services you offer too. Let them know if you
have an companion item they might be interested in. If you have
a lawn mowing business why not let customers know that you now
trim hedges too?
The last
word in relationship marketing
As we move into the 21st century it is tougher than ever for
small businesses and startup businesses to survive. Not only
is there local competition but there are catalogs, online shopping,
mass merchants and direct mail to name just a few.
If your local market has the potential numbers to support
your business then there is no reason not to make it in most
small towns. The key in this article is building and maintaining
relationships. One businessman here in town has a very simple
philosophy. "Make a promise, keep a promise." All that
means is do what you tell the customer you're going to do and
DO IT!!
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This article may be reproduced for your non-profit
group or organization provided it is not altered in any way and
the following is attached:
©1998 - 2004 Eagle Marketing PO Box 271 Bozeman, MT
59771-0271
http://www.smalltownmarketing.com - (406) 585-0219 - Toll FREE
(888) 550-6100
email: tommail@smalltownmarketing.com
Based in Bozeman, MT, Tom Egelhoff is the author of How To Market, Advertise & Promote Your
Business Or Service In A Small Town, and The
Small Town Advertising Handbook: How To Say More And Spend Less.
He is also a seminar and workshop presenter
and trainer. He may be reached at 888-550-6100 or PO Box
271 Bozeman, MT 59771-0271
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