Relationship Marketing Ladder

COMM2385

CLIENT MANAGEMENT

Lecture 3: The Relationship Marketing Ladder Developed by Melanie Casul (2012)

Based on the original Melbourne materials by David Fouvy and Caroline Van De Pol (2010)

Learning objectives for today:

• #2 Construct strategies that build long and

successful agency/client relationships.

• #4 Demonstrate professional skills required for

effective advertising client and account

management.

7/4/2014 RMIT University Vietnam 2

You will learn to

• Describe different levels on the relationship

ladder and steps to move up on it.

• Explain how Client’s Perspective is important to

Great Work.

• Analyse the foundation of client service: Work,

Relationship, Trust and the links among them.

• Articulate ways to Negotiate with client’s difficult

request.

• Describe approaches to build Trust


3 Key Concepts for Topic Writing

• Triangle 1: Cost-Time-Quality

• Triangle 2: Great Work-Relation-Trust

• Ladder: Marketing Relationship


Client & Agency Expectations…

6/26/2012 RMIT University Vietnam 5 5 6/26/2012 RMIT University Vietnam 5

• What are some of the problems in this relationship? • http://www.youtube.com/watch?v=R2a8TRSgzZY

Quality-Price-Time Triumvirate Model


Source: Reproduced with kind permission from Monica Morelos, River Orchid Vietnam, 2012.

“The Relationship Marketing Ladder”

7

Source: Reproduced with kind permission of Butterworth-Heinemann from Payne, Christopher and Peck (1995), Relationship Marketing for Competitive Advantage, p.viii

Prospect/Contact

Acquaintance/Customer

Expert for Hire

Steady Supplier/Supporter

Advisor/Advocate

Trusted Partner

Emphasis on winning

new customers

(customer catching/

client acquisition)

Emphasis on developing

& enhancing

relationships (customer

keeping/ client retention)


Trust is at

the ladder

top

8

Level Activity1: How a client would describe it

L1 CONTACT We’ve met. I think he works for ….

L2

ACQUAINTANCE “I’ve know her for a while. We have some things in common

and know some of the same people”.

L3 EXPERT FOR

HIRE “He’s very knowledgeable in that area and did excellent work

for us on a project”.

L4 STEADY

SUPPLIER “We’ve had a relationship for a while now. She and her firm

consistently deliver and I’ve recommended her to a few

colleagues. For this type of work, we’ll continue to use them”

L5 TRUSTED

ADVISOR “I have known him for a long time. He’s superb at what he

does and has great business sense. I really trust his

judgement and I will definitely use him as a sounding board

for tough issues”.

L6 TRUSTED

PARTNER “I view them as a long term partner in growing our business.

They’ve built many strong relationships with our people and

they consistently add value. I feel we get the best that their

firm can offer”.


9

Level How a client would describe it

L1 CONTACT We’ve met. I think he works for ….

L2

ACQUAINTANCE “I’ve know her for a while. We have some things in common

and know some of the same people”.

L3 EXPERT FOR

HIRE “He’s very knowledgeable in that area and did excellent work

for us on a project”.

L4 STEADY

SUPPLIER “We’ve had a relationship for a while now. She and her firm

consistently deliver and I’ve recommended her to a few

colleagues. For this type of work, we’ll continue to use them”

L5 TRUSTED

ADVISOR “I have known him for a long time. He’s superb at what he

does and has great business sense. I really trust his

judgement and I will definitely use him as a sounding board

for tough issues”.

L6 TRUSTED

PARTNER “I view them as a long term partner in growing our business.

They’ve built many strong relationships with our people and

they consistently add value. I feel we get the best that their

firm can offer”.


Solomon’s Triangle


RELATIONSHIP

GREAT WORK TRUST

Apply to your group work

Activity 2: Group Discussion

• Group1: Work vs. Relation “Great work Wins Business; a Great Relation

Keeps it.” (Solomon, ch38)

– Do you agree with “The work is the only thing that matters”.

– Why did agencies with great work lose clients?

– How is relationship defined by Solomon?

– Why has relationship become so important in keeping client?

• Group2: Great Work Builds Relationship “In Writing the Brief, Provide the

Client’s Perspective” (Solomon, ch9)

– What was the “Washing Planes” advertising concept and how was it

created?

– What links connect this chapter with ch3, “Live the Client’s Brand”?

– How can you become the expert on client’s products, people, and culture?


Activity: Group Discussion

• Group3: Persuading “Make No Commitment without Consultation

“(Solomon, ch40,41)

– What is the issue in terms of Quality-Time-Cost triangle?

– Why was the client labeled as from “hell”?

– Facing the client’s request, Solomon had 3 options: “Yes”, “No”, “Hold on”,

which one did he choose and why? What was the result?

– How did he persuade the client to agree on his proposal?

– What lessons do you learn in terms of how to deal with difficult clients?

• Group4: Building trust “Do Not Sell” (Solomon, ch17)

– Why buying (by client) is preferred to selling (by agency), according to

Solomon? Agree?

– How do agencies gain client’s trust? Give example of someone you trust.

– Does serving client’s interest mean following client’s request? Why?


6 Signposts of a great relationship (individual level)


©2010 by Andrew Sobel

TRUST

• Does your client think you are professionally competent?

• Does your client think you have Integrity?

• Does your client think you are willing to always focus on

their agenda?

• Can you work informally, without constant checks,

controls, and updates?

• Does your client require extensive documentation and

analysis to support everything you say, or are they…

• Willing to consider your judgment and insight without

challenging it?


THOUGHT LEADERSHIP

• Are you perceived as a trusted business advisor who

brings both subject matter depth and broad business

knowledge and judgment to the table?

• Are you shaping and leading the client’s agenda, or

simply reacting to it?

• Would your client say that you bring them new ideas on a

regular basis?

• Do you have strong “share of mind” in terms of the group

of individuals who are shaping how your client thinks?


INNER CIRCLE

• Do you have a “seat at the table” for significant strategic

and operational conversations and decisions?

• Does your client call you and say, “We’re just thinking

about this idea and I wanted to bounce it off you at an

early stage…”


TRANSPARENCY

• Does the client openly share information with you about

their plans, programs, priorities, and upcoming initiatives?

• Or does your client keep you in the dark, at arms length?


LOYALTY

• Will the client always use you and the firm in areas of

acknowledged competence?

• If they frequently shop around, or would be willing to drop

you in favour of a slightly cheaper alternative, you may not

have the high quality relationship that you thought you

enjoyed.


REFERENCE-ABILITY

• Would this client simply provide a passive reference if

asked, or…

• Are they actively promoting you and your organization to

colleagues and friends and creating referrals for you?


Activity 3b: “Client Relationship Ladder”

1. What would you as an

agency do to climb the

ladder?

2. Write down at least 2 for

each ladder level from the

agency perspective.

3. Share findings with the

class…


Relationship Ladder topic suggestions for Assessment 3

• More topics to explore with your interviews:

1. Finding the right agency = client fit

2. Which is more important client acquisition or retention?

3. “Once a client, always a client”


Next: Video Discussion

• BRANDBOX “Leadership in Creative Industries”
