What is a relationship and how do you know if you are in one

What is a relationship and how do you know if you are in one?  Companies and customers may have different reasons for entering into long-term relationships; identify where the common ground lies, that is in which circumstances it is in the interest of both parties.  Why are long-term, loyal customers often companies’ most profitable customers?  Identify four generic strategies for increasing the lifetime value of a customer.

Solution

The state in which two or more people connected through a relation or through effective communication can be termed as a relationship. There are some relationships which are pre formed like the relationship with mother, father, family members, etc. and there are some relationships which we form in our life span like friendship, love life partner, and many more. While speaking about the relationship between an organization and its customers we observe various reasons for the formation of such a bond and the basic or primary objective is business or known as mutual profit which both the party expects from each other. A customer generally becomes along term customer when the person has got what he expected from the company like quality product, quality service, cost effective product and friendly behavior which is the most important of the lot because even if the quality does not vary behavior can make a huge difference between companies and I consider this as the clinching factor.

Long term, loyal customers are often the most profitable customers because the healthy relationship that they possess has made the customer recommend the same organization to his known ones and has even insisted family members and friend to opt for this company as he has been benefitted and once the company is aware that people are using the reference of one of his loyal customers the organization may adopt a different strategy in this case by providing the best quality at low cost in order to attract more and more quantity of business which will result is huge profit on a whole.

There are various strategies which are used by organizations in order to increase the life time of the customers. They are: