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Retaining customers – What forms a high quality relatioship?

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Retaining Customers - What forms a high Quality Relatioship? Because of the wide knowledge of what forms a high quality relationship and because of the assignments limited extent, the author has been compelled not to make in-depth analysis about the areas, and therefore not be able to cover it all. What forms a high quality relationship? To give a suggestion of what forms high quality relationship from the business to business point of view the author of this paper has looked relationship marketing and quality service, what it means and furthermore how it can be improved. " Relationship marketing is to identify and establish, maintain and enhance and when necessary also to terminate relationship with customers and other stakeholders, at a profit, so that the objectives of all parties are met, and that this is done by mutual exchange and fulfilment of promises" (Gr�nroos 1994) Tubull and Wilson advocate that a long - term relationship is build on bonds. It can be ether social or structural bonds which keeps the relationship together. Social bonds are more healthy for the company because both parties are in the relationship on their own will, not because they are trapped by some investment or switching costs. ...read more.


Most services are inseparable in production and consumption ( Regan 1963, Gr�nroos 1978) e.g. Services which are labour intensive, the quality occurs during the delivery process. This is normally in the interaction between the buyer and the salesperson from the company ( Lehtinen and Lehtinen 1998). One main part of quality is the delivery system, how the firm deliver service to their customers, which are seen as a competitive advantage in today's marketing environment. Therefore it has to be controlled and managed right by the company if the firm want to be leaders in servicing their customers. When talking about the delivery process, we mean all the service encounters. Lynn Shostack defines service encounters as 'A period of time during which a customer directly interacts with a service'. Service encounters are divided in three: - The remote encounter, e.g. mails, catalogues, machines, all of no human interaction; - Indirect personal encounter, verbal but no face to face interaction, e.g. the operating service for the company; - direct personal encounter, involving only human interaction. The service encounters are very important, it can help the firm to manage and control the service encounter quality in greater extent, when paying closer attention to what the customer sees and hears, one of the five senses. ...read more.


service personnel have to have consideration for the customers and their belonging; - Communication, The salesman has to ask about the customers needs for service and weather they are satisfied with the service they are getting or not, feedback ; - Credibility, means that the firm has to show the consumer that they are trustworthy, otherwise it could mean the termination of the relationship; - Security, the customers physical safety and financial security; - Understanding the customer: They need to make an effort to understand the customers needs as in spending more time with they; - Tangibles, the customer must have some proofs of the service they have been given. Conclusion There is no golden rule what forms a high quality relationship. The reason is that no relationship between the selling company and their customer are the same. Every interaction, which involves the two parties, is different, and therefore the way customers are served can be an important source of competitive advantage. However, the author means that the most important buyer - seller relationships are built with mutual exchange and trust. Another important thing is for the company it understand their customers needs and expectation in order to give them what they want, high quality service. ...read more.

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