Exporting Your Services

Relationship Marketing

When you are new to a market, it can be hard to become the firm that is recommended. And there are lots of occasions – like receptions at conferences, or other networking events – where you are trying to meet new potential customers. So…how can you build that trust and confidence? The answer is “relationship marketing.” The following ten questions and answers provide tips on how to use relationship marketing for export success:

What is relationship marketing?
How is relationship marketing different from product marketing?
Why does relationship marketing work better for services than product marketing?
What is the two-step process of relationship marketing?
What is the goal of my first meeting with a prospective customer?
How would an hour meeting be structured in relationship marketing?
What about the structure of a short informal meeting?
Why is it important to first listen to the customer’s needs?
What does the Rule of Six mean?
How do I get a prospective customer’s attention?

What is relationship marketing?

Relationship marketing is a form of marketing where the key goal is to build a trusting relationship with a potential customer, out of which a sales will develop. Just as with the network exporting™ model, the initial emphasis is on relationships rather than market or product characteristics.

How is relationship marketing different from product marketing?

Relationship marketing is different from traditional product marketing because the initial focus is on building relationship rather than on the features and benefits of your service. By first establishing a relationship and understanding your potential customers needs and frustrations, you can customize the description of your service capabilities to show exactly how your firm can meet their needs.

Why does relationship marketing work better for services than product marketing?

It focuses on the very real needs of your prospective customer.
It forces you to listen – really listen – to your prospective customer.
It gives you credibility with your customer because you offer services that your customer really needs.
It allows you to identify opportunities for innovation – and potentially a greater profit margin.
It is the easiest marketing style for your staff to learn because it is the same as good communication.
Because it establishes trust, it can lead to lots of referrals, which in turn leads to increased sales.

What is the two-step process of relationship marketing?

Selling services is a two-step process: Step #1 is to build a trusting relationship with a potential customer. Step #2 is the marketing or promoting of your particular service or service capability. This sequence is critical because the customer has to believe you can deliver before they will consider buying anything from you.

What is the goal of my first meeting with a prospective customer?

The goal of the first meeting is to start to build the relationship, not necessarily to sell the service. Remember the potential customer does not need to hear about everything you do. You need to shape your marketing message around the customers’ needs.

How would an hour meeting be structured in relationship marketing?

10 min	Building rapport with the potential customer…small talk, gaining trust.
15 min	Gathering information from your customer...asking open-ended questions about the issues facing them in their operations – in other words, listening and getting the potential customer to talk.
10 min	Reflect on the information you have gathered by asking questions such as, "If I understand you correctly, you have a problem with managing change within your organization."
10 min	Talk about your services, shaping the way you describe your service capabilities to address the needs of the customer
10 min	Ask for a commitment: "What if my firm were to…, would you be interested?" or "How about if I send you a proposal to do the following…" Address any concerns the customer may have.
5 min	Verify the commitment and end the meeting.

What about the structure of a short informal meeting?

You can use the first part of the formal process very effectively in short encounters, like at a networking event. Spend five minutes asking questions, three minutes clarifying and reflecting on what they have said, and then present your own service capabilities.

Why is it important to first listen to the customer’s needs?

With product marketing, the customer can see what you are selling so you can talk about the features and the benefits of the product right away rather than listening and gathering information. But with relationship marketing, you want the opportunity to adapt the way you present your service capabilities to their actual needs. So first you need to learn what those needs are.

What does the Rule of Six mean?

The Rule of Six means you will usually need to make contact six times before you attract a prospective customer’s attention or get a response. This is usually not due to lack of interest; rather, it could be the customer is focusing on other issues with higher priority for them, or they may not have immediate access to budget.

How do I get a prospective customer’s attention?

You need to find ways to keep getting to the top of their list. Remember…you are building a relationship, and relationships don’t happen through just one meeting! The reasons for getting in touch need to make sense in the context of building that relationship. If you think about things from the perspective of the Rule of Six, you’ll see why you may not want to load people down with lots of literature at the first encounter. If you give your business card and promise to send more information, this gives you one good reason to make contact. You may use other ways directly related to the business you were discussing – e.g., sending an article related to their needs. Or you might follow up on another interest of theirs. For example, if, while in their office, you notice a photo or some indication of their interest in soccer, you could send an interesting article on soccer, or a magazine subscription.

Finding ways to follow up and doing so regularly are critical for success. Too many service exporters go into a market and give up after a couple of months, and all their efforts are wasted. Unfortunately, one of the things we hear all too often is, “Oh, yes. I met with them – an interesting firm, but I never heard from them again.”