Relationship Capital that works can be measured in real dollars because when done effectively, it will generate a return in multiples of what a marketing investment alone will produce. You must still invest in marketing to promote your business; what I am suggesting is that Relationship Capital can increase your return and reduce your expenses.
Relationship Capital is gained through networking and is achieved by leveraging your quality relationships into business profits.
Relationship Capital is generated by identifying your value to existing as well as potential customers. Your value will be measured in proportion to how well you identify and address their unresolved challenges or their unachieved aspirations.
Successfully communicating to your customer how your product or service resolves a challenge or assists them in achieving an aspiration is the foundation of Building Relationship Capital.
5 Ideas to Remember about Relationship Capital
1.) Every Opportunity to prosper flows from Relationships.
2.) Relationships are only successful when you both mutually benefit.
3.) Relationships always begin with "Hello."
4.) Most Relationships end over hurt feelings.
5.) The Quality of your Relationships will be determined by the Quality of the People in the Relationship.
As Small Business owners we should approach every relationship as though we want it to last for the rest of our lives.
6 Caveats To Remember About Relationship Capital & Networking
1.) No one owes you their business, so earn it!
2.) Be a Friend to Make a Friend!
3.) Maintain your boundaries with Customers!
4.) Relationships are fragile; handle with care.
5.) The customer is not always right, but they do pay your bills.
6.) Document every contact whether successful or not in a way that is easy to reference later, because "No!" right now is not "No!" forever.
You may believe that your customers understand your unique value to their business. The truth is often just the opposite.
Many times your customers have no clue what your unique value is, aside from the fact that you contacted them at a time they needed your product or service. If this is the case, then you simply benefited from their position in the "Looking Zone".
You are on thin ice with your customers, if your value to them is based upon your timing alone. You will lose customers to cheaper competitors unless you communicate the real value of your business to your customer in a way that resonates with their interests and needs.
Learn to effectively communicate your value to customers and you will successfully retain them.
Keep Your Existing Customers!
Customer Retention must always be a priority for business owners.
The cost of retaining an existing customer is often less than gaining new customers. Depending upon your type of business; retaining a customer could mean an improvement in your margin of profit.
Gain New Customers!
Remember that new business is the life blood of every growing business, particularly if you are adding new clients to an existing customer base. Refreshing your business with new customers keeps your business healthy and growing.
Keeping existing customers and gaining new customers requires a plan.