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By
Kathleen
Cassedy
 Keynote speaker Richard Metzner,
president of Brierley & Partners, spoke about the “Art of Relationship
Management”, a subject for which he is uniquely qualified.
Metzner helped start Targeted
Marketing Systems Inc. in 1985, the parent company of Brierley &
Partners, which is a full-service direct marketing company that specializes
in the design and implementation of Customer Relationship Management®
programs. For two decades, Metzner held a variety of marketing and strategic
roles, including vice president of marketing for Continental Airlines.
He returned to Brierley & Partners in early 2000 to lead the company’s
efforts in developing and implementing customer loyalty programs in
the electronic marketplace.
Metzner’s topic focused
on the six major building blocks that are necessary to create a customer
relationship management program. While people sometimes think of these
programs as rewards programs, those are only components of relationship
programs, he said. These also are not marketing programs, he pointed
out. “You don’t market relationships. You have relationships.”
1. Building the Framework
Companies need to know more
than the number of its customers and the percentages of who are buying
particular products. Companies need to develop databases to identify
their best consumers and track their behavior.
“Ask consumers what
they want. Track what they actually do. What should they do?”
2. Establishing the
Relationship
Once consumers have been
identified and their behaviors tracked, a relationship program can be
developed. It should provide opportunities to involve consumers. This
can involve providing customers with personal service, or recognizing
best customers with special events or amenities, such as premier check-in.
3. Developing an Ongoing
Dialogue
Companies need to create
ongoing communication that is relevant and provides a sense of expectation.
Consumers must perceive that the relationship provides value for them.
Communications in all media should have the same point of view, which
does not mean that they are identical.
Organizations must respect
the consumers’ privacy or they will violate consumers’ trust.
If a business is communicating on the Web, it must provide a response,
even if it’s just an acknowledgement, within 72 hours or sooner.
4. Maximizing the Value
of the Relationship
The relationship must be
valuable for both the consumer and the company. If a company develops
targeted offers, what will it provide back? Customer Loyalty?
In developing preferred customer
programs, companies need to estimate the value of their customers. Will
the rewards hook customers and become something for which they aspire?
For example, Frequent Flier programs have evolved into three levels.
5. Rewarding Loyalty
Rewards can be the most powerful
tools to build and sustain loyalty, but if they become unattainable,
then customers start resenting them and the company, Metzner noted.
A rewards program needs to
be structured, he said. “It does little good to give a whole lot
of things to people who are going to buy from you anyway.” he said.
Before launching a rewards program, answer three questions.
• What will be the
company get back?
• What advantage does the company have if other businesses copy
the program and it becomes a zero sum game?
• How can a company shut down the program?
6. Sustaining the relationship
Relationship programs must
be continually monitored to determine customer satisfaction, and to
respond to lifestyle changes. A relationship program should include
benchmarks for improving. A company can build partnerships or alliances
with other companies if its loyalty rewards are things that other people
want.
In closing, Metzner reviewed
basic points to initially consider in developing a customer relationship
program.
• What does the business
want to accomplish with its program?
• What is happening in the marketplace?
• Identify the best practices in relationship programs. Do not
be ashamed to steal, borrow, or copy. Trade
off things that the company did before that worked.
• Identify financial opportunities. What is the payoff?
• Study available research. Is more customer research needed?
• What can the company offer customers that will generate their
desired behavior? People will take anything that you give them, that
doesn’t mean that it is motivating them to be loyal to the brand.
• Create an overall strategy, not just a series of promotions.
• Identify what the company needs to do to implement the program.
• Design the model, test it, then launch the relationship program.
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