Four Examples and Rewards of Running a Relationship Business

Great customer relationships that develop into trust define the health and growth potential of your business. Trust results in repeat business and referrals, and there are also many other rewards associated with strong relationships.
The following sections provide four windows into the kinds of benefits you can expect in return when you focus your email marketing on building toward trust instead of just promoting transactions. Each section includes a benefit and a real-life example of a business that has derived the benefit using email marketing to develop trust.
These are the same benefits we strive for at Constant Contact, and they have made us very successful. Use our experience, and the following examples, as a guide so you can start recognizing and building valuable relationships of your own through your email marketing.

YOU’RE FIRST

When you invest in building relationships with your customers, they return the favor by thinking of you first when the time comes for making a purchase. Customers who have a relationship with you will also go out of their way and ignore the competition.
I lived in New York City in the late 1980s, and at that time I began shopping for clothing at a men’s clothing store called Rothman’s. The store offers high-quality clothing at reasonable prices with the added benefit of store employees who really go out of their way to provide their customers with a great shopping experience (see Figure 2.3). Over time, the store owner, Ken Giddon, and I became good friends because he made every shopping experience special and nurtured our relationship with ongoing relevant and valuable communications. To this day, when it comes to shopping for clothing, I put most purchases on hold until travel takes me from Acton, Massachusetts, to New York where I do all my shopping at Rothmans.
Email marketing is not only about trying to sell more product, it’s also about extending the shopping experience and building trust. Rothmans’ email marketing campaigns continue the Rothmans experience by sharing tips on men’s fashion, advice on how to select a well-made suit, or ways to spruce up an old suit with a new shirt and tie. The emails not only build trust, they make their customers think of them first and foremost.

PRICE IS PETTY

Customers who value your relationship are less price-sensitive than customers who only value the transaction. That doesn’t mean you can charge anything you want for your products or services, and it certainly doesn’t mean you should reward loyal customers with higher prices. What it does mean is you won’t have to spend too much of your valuable time bargaining with customers or worrying too much about how your competition is pricing their products and services.
I have one of those major home supply stores right by my office, but I prefer to go to the local Acton ACE hardware store for most of my hardware needs. The primary reason is the connection I have with the people who work there. I realize that I am probably paying a little more for a certain piece of hardware; however, they take the time to find me when I walk in the door and ask me what I am looking for, versus the major home supply store where I spend half my time in the store trying to find someone who knows where the stuff is that I need. Time is money, and it’s more important for me to quickly find what I am looking for than for me to save 20 percent on a box of nails, and in addition it feels great to be able to support our local business community.
Figure 2.3 Rothman’s extends the shopping experience.
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CUSTOMERS RETURN MORE OFTEN

The stronger your relationships, the easier it will become to draw your customers back to your business. Repeat business usually starts out of familiarity or convenience, and then grows as trust develops. When you develop trust, your repeat business starts to come from a sense of obligation or even emotional attachment. Those feelings are valuable to your business because they generate very loyal customers. They are also very fragile, however. When you have relationships of trust in your business, be extra careful not to take advantage of those relationships and make sure you are thanking your loyal customers often.
Il Forno is my family’s favorite local go-to restaurant. Whenever we talk about going out for dinner, it is the first restaurant that comes to mind. It’s our first pick because the food is great, and more importantly, the wait staff recognize us when we walk in the door. In fact, it was actually the actions of one employee, Jenn, that won us over on our first visit. She learned the names of our children, asked us what we wanted for dinner, and had the kitchen create her favorite salad, which was not on the menu. She also made sure to welcome us back each time we returned to the restaurant. When you have this type of relationship, email marketing is all about making your audience feel like part of your family.

CUSTOMERS SPREAD THE WORD

When you develop trust in your relationships, you’re going to get more direct referrals, and your customers are going to spread the word about your business without giving you a direct referral.
Here’s how it works: It comes down to basic human nature. When your customers trust you and frequent your business, they will share stories about their interactions with you through the course of normal human interaction. It’s human nature to want to be perceived as being smart, connected, and knowledgeable. People will talk about your business with friends, colleagues, and co-workers because they like to share knowledge that adds value to conversations. Your job as an email marketer is to make sure your customers have knowledge that is worth sharing with others. At Constant Contact we have learned that leads that come from our existing customers convert at the highest rates of any of our new customer sources. There is nothing like one business owner saying to another, “You should be using Constant Contact.”
Figure 2.4 Flyte shares knowledge with its audience.
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Flyte news media’s (www.flyte.biz) “flyte log” newsletter contains a wealth of information on how to succeed online (see Figure 2.4). In this edition, the company president and author, Rich Brooks, dedicates the entire body of the communication to helping his readers learn how to leverage online video for fun and profit. In sharing his knowledge with his readers, Rich is not only reinforcing his reputation as an expert in the space, he’s also greatly increasing the likelihood that his readers will share their new-found source of great knowledge with others.
When I ask business owners where the majority of their business is going to come from in the next month or quarter, the reply I typically receive is “from my existing customers.” At this point I usually borrow a quote from Warren Buffett, who said “In the business world the rear view mirror is always clearer than the windshield.” While I am not sure of the context of Mr. Buffett’s statement, the point is that by focusing your attention on the satisfied customer walking out the door you will find a clearer path to success. Harnessing the power of relationships is all about tapping into the rear view mirror through ongoing communications with people that already know who you are. In the next chapter we will explore why email marketing is the most cost-effective way to continue an ongoing conversation with your customers.
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