RELATIONSHIP MANAGEMENT

Relationship marketing, with focus on "best customers", uses loyalty programmes like frequency marketing and club membership. These reward-based schemes, like Air Miles and Discount Cards, give the customer some reward for continued usage or loyalty, as a way of saying "thanks for being with us". In India, such schemes are becoming popular with the operators. These include Skycell's Smart Club (and Member-get-Member scheme) and Ushafone Reward Card which offers discount of 15-20 percent in hundreds of restaurants and shops.

In order to retain the "most valuable" customers, one has to identify and target them by gathering and analyzing information on their needs, attitudes, and behaviour including those pertaining to business/profession, lifestyle, preferences, hobbies, etc. Then one can carefully prepare loyalty schemes in partnership with other organizations, with similar objectives and target customers. This synergy and sharing knowledge about the customer can lead to leadership for all the partners in their respective businesses.

A powerful example from the UK is the partnership of the cellular operator Cellnet with Barclaycard, the leading credit card. The partnership provides customers with an integrated package, including customized Alcatel handset and payment facility on the Barclaycard account. Cellnet considers this relationship with Barclaycard as having exceeded expectations and a key component of Cellnet's success story.

Since the customer is usually not so keen to carry many cards in his wallet, such partnerships can be extended among credit cards, airlines, hotels, petrol pumps, and retail stores, each one presently having its own card scheme. One such "SMART" loyalty and reward card in UK has partnership among leading brands viz. Cellnet, Shell, Ford, Allied Domecq (food retail), Next & J Sainsbury, all benefiting from Smart Card technology. With other leisure and entertainment companies joining for redemption of points, the scheme is already a great success with over four million users.

In Japan, where competition is fierce with increasing churn—expected over 40 percent during one year—Tu-Ka Phone Kasai, a PDC cellular operator, has introduced a unique dial-up information service on restaurants, with focus on young as well as female subscribers, believed to have the highest disposable income, greatest propensity to eat out, and highest penetration of cellphones. Tu-Ka does not charge the restaurants which
on presentation of Tu-Ka branded handsets, give 20 percent discount to the customers: a very effective strategy for the ever-growing "young" segment. However, "business" segment requires different kinds of information: stock prices, air and train timetables, entertainment guide, etc.

In Mumbai, MaxTouch provides information about hotels and restaurants (kind of food, locations, telephone numbers), cricket updates, airline schedules, and subscribers can even order a flower-bouquet or a box of chhappanbhog sweets, at a discount, from their cellphones all adding to airtime usage.  

Communication being our business, we must communicate with our customers as often as possible. Be it through phone calls, newsletters, customer-contact or cultural programmes like theatre, music, dance, cinema, etc. Essar's newsletter "Hello" is a trendsetter in India. A simple birthday wish or an anniversary card too can win many hearts!

"The Discipline of Market Leaders" advises, "The customer intimate companies are more than happy to make investments in building relationships, but to receive an eventual return on their investments, they have to retain their clients. A steady client is a lasting asset, a one-time client is a poor investment."