Marketing Musings: Preserving Business Relationships

I’m becoming more and more convinced that our Grandparents are more equipped to find success in today’s economy than we are.

-Gary Vaynerchuk

I was stunned when I first read this in his book “The Thank You Economy”. But once I read the explanation it made complete sense. The basic premise was that the economy in our grandparents’ era was based on long term relationships developed through close knit communities and superior customer service. Businesses in small towns know they have to provide superior service because everyone talks to everyone in small towns. (Anyone else feel this describes Cedar City perfectly?) Shortly after World War 2 the economy began to shift (in conjunction with the rise of suburbia) to an economy based upon convenience and low cost. (see big box stores) And we as consumers allowed that to happen, because that’s what we told businesses was most important to us.

So what does all of this mean have to do with our Grandparents? The economy has come full circle. The new economy is based upon long term relationships developed through close knit communities (the city commons, is now the Internet) and superior service. Businesses today know that they need to provide superior service because your reputation is one post, tweet, or yelp from being destroyed. If you don’t believe me here are some of results from a recent survey, done by Right Now, a customer service consulting company:

-85% of consumers say that they would pay 5-25% more to ensure superior customer service.

-76% of consumers say that they appreciate it when a brand shows a personal interest in them

-66% of consumers say superior customer service was their primary driver for greater spending

-55% of consumers cite great customer service, not product of price, as their primary reason for recommending a company.

-40% of consumers switched to buying from a competitor because of it’s reputation for superior customer service.

With each consumer now having many different avenues to express their displeasure with your business, it’s important for you to show that you care by providing not only superior customer service, but by also developing long term relationships with your clients.

Derek Morton has been in the Title Industry for 9 years. Currently he works for Mountain View Title and Escrow in charge of Market Development for Cedar City, Utah. He is currently the Chairman of the Board for the Cedar City Area Chamber of Commerce. He also owns the blog www.cedarcityrealestate411.com , and can be found on Twitter @cdrrelestate411