Why a Business Wants Relationship with its Customers? with example

Here is  Why a Business Wants Relationship with its Customers? with example Being social animals, we are naturally inclined towards interaction. The bonding that takes place when we communicate in a healthy manner paves smooth ways for many difficult challenges.

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 In the role of customers, we interact with salespersons, dealers, wholesalers, and suppliers.

In the term CRM, ‘R’ stands for relationship, but can a relationship between a customer and a business exist? Let us discuss more about the term relationship and its role in businesses.

What is the meaning of  Relationship ?

The Oxford Dictionary defines relationship as, “the way in which two or more people or things are connected”.

Investment of time, trust, transparency, care, and communication are vital for any relationship to build and survive. This is applicable to human relationships.

 As far as a formal business domain is concerned, the definition goes as follows −

“Relationship is a series of repeated interactions between dyadic parties over a time.”

If a person on his journey stops at a roadside eating joint and buys a burger, it is a transaction; not a relationship. 

But when a person goes to a particular shop repeatedly, because he likes the store’s ambience, quality of products, 

or the way he receives service at the shop, then it can be quoted as a relationship.

Every business regards its customers as a lifetime stream of revenue; losing a single customer can cost the business very high.

 Lifetime Value (LTV) for a customer is considered to analyze the effectiveness of a particular marketing channel.

For example, if the Churn Rate of a business X is 5% and that of business Y is 10%, then in the long-term, business X would have a larger customer base than business Y, which places business X at the position of competitive advantage and directly influences profit of both the businesses.

A business can generate greater sales volume and in turn greater revenue if it knows its customers well and have good relationship with them.

 Thus, solely for the economic purpose, every business wants to have healthy relationships with their customers.Releationship with customer is the key of sucess for your business in long run