How to build profitable customer relationships

So you developed a product and you think you are ready for the next phase? After all, when designing a new product it is all about meeting the customers’ needs. Because why offering a product which the customers doesn’t consider as a need. In the process of developing a product, the need of the customer gets concretized into a specific concept which meets up to the wishes of the customer and there by the customer gets pleased. When it’s all about the customers’ needs, what about the advantages for the provider of the product/service? That’s what this article is about; How to make sure your customer relationships will deliver YOU profit?

When speaking of profitable customer relationships it is key to not just build a relationship. You need to keep outseeing the needs of the customer by overwhelming them with your next improvement. When they assume the best has come already, start offering even more. There are a few steps how to actually gain profit out of relationships with customers.

Step 1 — Customer relationship management
The first step of the process is to recruit customers, hold them and develop them. An option to manage your customers and your prospects (potential customers) is by attending the CRM-system. A CRM system is a tool to organize all the information of the prospects, including moments- and information of contact. In this way you are able to re-use the information to interact with the prospects in order to transform them into customers. Later on, the CRM system can be used for cross- and up-selling to hold and develop the customers.

Step 2 — Added value for the customer
What makes your product the most interesting on the market? What does your service includes that differences itself from the competition? That is what you have to communicate very clear from the very first moment! There are probably dozens of products/services similar to yours, communicate why to pick yours! The purpose of every entrepreneur is to persuade the customer of your benefits in contrary to the competition.

Step 3 — Selective relationship management
As explained earlier, your product has to meet the needs of the customer. This can only be done properly by adjusting the relationship you build on the customer needs. In this way each customer relationship is unique and adapted to their specific demands. When the suited relationship has been formed, the focus should be held on maintaining the customer by providing more added value. You need to exceed the expectations of the customer by delivering more and more.

step 4 — Consumer generated marketing
Interactive relationships are key to holding and building customer relationships. A way of interacting and branding your product is consumer generated marketing. In this form of marketing the strategy is based on the input of the customer. They provide you with feedback on your product and by responding on this, online you get interacting and attention towards your product. In this way you get promotion in a very pro-active and low-cost way! Win-win situation.

Step 5 — Customer equity
The final step of the process would be to build customer equity. Customer equity is the total value of the entire customer base. The higher the customer equity, the higher the future revenues you are likely to gain from your customers. Customer equity is built by building, maintaining and improving each separated customer relationship.

Benefits
Let’s clear out the specific benefit of each step.
1. By using a CRM system, information is being organized which makes sure you know how and when to approach prospects/customers.
2. By communicating the added value towards the customer in a very clear way, helps persuading the customer to choose YOU over others.
3. Selective relationship management makes sure you meet the needs of each customer.
4. Consumer generated marketing increases the popularity of your brand without any crazy costs.
5. And eventually customer equity will deliver you the actual profit out of the customers.

By following these 5 simple steps, you are a million steps closer by gaining profit out of the relationship with your customer. The relationship is based on the effort you put into it by exceeding the needs of the customer and their expectations. Building mutual trust and dependency is the fundamental for the customer relationship. It will produce repurchases on the short-term and on the long-term these repurchases will transform into customer equity, which will deliver you the actual profit.