How would you define a sales relationship? Sales relationships are about building long-term relationships with customers and the process does not happen overnight. Sales relationships can be built by reaching out to customers, offering rewards and incentives to come back to the company to purchase more products, and offering the type of customer service that customers love to receive. This paper will discuss sales relationships and compare and contrast the cost of customer retention verses customer acquisition.
Business-to-Business Retention and Acquisition
Business to business sales can be astronomical. An example of a business to business transaction is a small ...view middle of the document...
Since most of Sam’s Club business comes from small businesses the organizations desire to keep those businesses coming back is very important to Sam’s Club. In order to retain customers Sam’s Club will send out flyers on a monthly basis of new products and sales available in the store. Small businesses are allowed to receive a higher discount off of products if they hold business accounts. In turn, Sam’s Club will charge an annual fee to small businesses in order for that business to shop at Sam’s Club. The idea is somewhat ingenious. Customers are generally very loyal to Sam’s Club because they offer such a unique package and ability to purchase items that would be very hard to come by in small cities.
On another note, is customer retention the right route for Sam’s Club or is customer acquisition better? Customer retention means being able to keep loyal customers that shop at Sam’s Club on a daily basis. On the other hand, customer acquisition is the idea of bringing in new customers or prospecting for new customers. Is the cost of keeping customers at Sam’s Club worth the risk? Keeping customers loyal to company’s like Sam’s Club is an advertisement a very unique genre. If the customer sees something that is worth telling other businesses about loyal customers can in turn bring in new customers. Therefore, in a business-to-business environment customer retention is often more important that customer acquisition.
Business-to-Consumer Retention and Acquisition
Businesses to consumer transactions are more unpredictable than business to business transactions. Businesses are unable to predict if a customer is going to come back and purchase more items. This is especially true at specialty stores such as swimming pool stores or shoe stores. This is why customer retention and customer acquisition is equally important to in a business to consumer relationship. Business can spend half the cost on retaining customers by offering excellent customer service, loyal customer...