Sellers today are more focused on developing relationships with customers as this increases the possibility that the customer will buy. This has become very important in recent years because of the competition among sellers. In this respect, customers are providing value to the seller because the seller is deciding whether the relationship is worth developing.
A Welcoming Atmosphere
Customers enter into relationships with sellers because of several factors – commitment, trust, reciprocity norms, and exchange efficiency. A customer is committed to the relationship with the seller because he values the relationship in some way. For example, a business man may have breakfast every morning at the same coffee shop because of the opportunity to enter into an interesting conversation with other patrons.
Because the customer has an opportunity to express himself with someone with whom he has something in common, he will continue to frequent the shop. Additionally, there may be other regular patrons who return for the same reason. Therefore, the seller has created an atmosphere customer satisfaction which attracts the kind of customer he needs to keep himself in business.
Reliability Means Loyalty
Trust involves ensuring the customer that you are acting with integrity and that the seller’s actions in the future will involve the same level of integrity. For example, a customer likes to buy pastries at the bakery at the center of town because they are baked fresh each day. Because he has always bought fresh pastries there, he does not expect to find stale ones.
Many customers will frequent a store for many years because of this level of trust. When a seller is diligent about providing quality products, he attracts loyal customers who will continue to buy from him for many years. The customer will in turn refer his/her friends and families because of the great customer service.
One Hand Washes the Other
Buyers and sellers establish reciprocity norms when they agree to give and receive certain items or services from one another. For example, a seller may give a customer a free pen and pencil set when he buys a briefcase from a seller. In return, a customer may recommend a friend or relative to avail themselves of the seller’s services.
The notion of providing free items or services has become very popular on the Internet. People who do their shopping on the Internet are seeking bargains. The customer may have to search far and wide, but there is a bargain to be had if he/she is patient. Developing a relationship through reciprocity norms takes a significant amount of time because it involves providing a high level of quality.
Networking
Robert Palmatier, author of Inter-firm Relational Drivers of Customer Value, says exchange efficiency is the assessment of the time, effort, and resources needed to maintain a relationship.” Customers and sellers alike are assessing whether the current relationships are worth their time, money, and effort. They will sever ties with those that are not profitable. For instance, if a seller is not available to answer questions at the appropriate time, the customer may sever the relationship.
A seller who is able to maintain a wider source of contacts with others is able to be more effective in gaining knowledge and sales opportunities as well as establishing relationships. This undoubtedly increases his opportunity to gain profits.
In conclusion, the quality of the relationship between the buyer and seller determines the amount of profits the seller earns.
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