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Client-Based Relationships marketing

    Client-Based Relationships

    Client-service providers aim to build a level of trust with clients that leads to long lasting buyer-seller relationships.


    Discuss how relationship-building helps retain customers in a competitive marketing environment


    Key Points

    • Providing customer-oriented services builds long lasting consumer -provider relationships, leading to repeat sales and reduced client turnover.
    • Building service-oriented relationships involves carefully listening to the needs of the customer and fulfilling them through appropriate service offerings.
    • Customer retention has become increasingly important due to fierce competition between service providers.
    • Marketers can leverage service offerings to differentiate themselves from the competition and attract consumers.

    Key Terms

    • customer retention: An assessment of the product or service quality provided by a business that measures how loyal its customers are.
    • Homogeneous: Of the same kind; alike, similar.
    • Consumer: The consumer is the one who pays to consume the goods and services produced. As such, consumers play a vital role in the economic system of a nation. In the absence of their effective demand, the producers would lack a key motivation to produce, which is to sell to consumers.

    Client-Based Relationships

    Relationships are a key factor when it comes to the marketing of services. Since the product is intangible, a large part of the customer’s buying decision will depend on the degree to which he or she trusts the seller. Therefore, the service provider should listen to the needs of the customer, fulfill them through the appropriate service offering, and build a long-lasting relationship that will lead to repeat sales and positive word-of-mouth.

    Given today’s highly competitive scenario, in which multiple providers are vying for a limited pool of customers, retaining customers is even more important, and more cost-effective, than attracting new ones. Since services are usually generated and consumed at the same time, they actually involve the customer in the service delivery process by taking into consideration his or her requirements and feedback. Thus they offer greater scope for customization according to customer requirements, potentially offering increased satisfaction and leading to higher customer retention.

    Building Relationships

    Building client-based relationships is also important due to the increasing homogeneity of product offerings. For example, many beauty salons that offer homogeneous, or similar, services such as a haircut, coloring, and styling. Having an unkempt and unsanitary salon will ensure the client will never come back. Something as simple as cleanliness is a good way to increase client confidence, especially since a client does not know how a haircut will turn out until it is done. Due to the increasing number of salons available, it would be very easy for a client to go elsewhere. However, being friendly, professional, and listening to the needs of the client will help ensure that the client will be a repeat customer.

    A Rolls Royce airplane.

    Competitive Success: Rolls Royce PLC maintains a competitive edge in the airplane engine industry by adding valued services to improve the quality of its engine.

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