Relationship Marketing Essay

1025 Words5 Pages
Relationship Marketing: Explain how Relationship Marketing can be applied to a selected business I am going to be explaining how relationship marketing can be applied to Tesco’s. Firstly there is the ladder of customer loyalty and there are four steps to this. The first step is known as the Prospect. This is when the person who buys your product who hasn’t become an official customer yet but could potentially be one. ‘Prospects’ are drawn into in to making a sale because of the transactional marketing techniques the business uses. One example of these for Tesco’s would be some of the offers they frequently offer, such as buy one get one free, or there would be some products that would have a price drop which would also attract buyers. The second step in the ladder of customer loyalty is ‘Customer’. This is a person who has been a customer to your business once, but they wouldn’t necessarily recommend your product or service. There is quite a bit of relationship marketing done at this point, and what the business would like to do next is make the ‘Customers’ into ‘Client’ ( next stage of the loyalty ladder) by offering loyalty cards etc. For Tesco’s this is when their Clubcard system is a huge advantage for them, because they offer so many loyalty programmes that customers can take part in once they have enough points on their Clubcard. Every time a customer makes a purchase the Clubcard is scanned so when they get enough points they can choose from a number of different rewards. The third step in the ladder of customer loyalty is ‘Client’ as mentioned in above. A client is a person who would support your organisation very passively. Although they would come buy your products or use your services they still wouldn’t make recommendations to friends or family about it. A lot of businesses would provide excellent and efficient customer service to try and change
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