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“Treasure People and Exploit Tools”

What is relationship marketing?

For our purposes, we’ll call it “events, activities and nontraditional sponsorships that create lasting public goodwill and shared experiences among individuals.” This is absolutely the most critical message that we, the industry players devoted to optimum commercial internet use, have to deliver. Bluntly put, we’re not in the seminar business, the consulting business or the product business. We’re in the people business. No business ever sells to the general public. We sell a result to bosses and potential transferrable knowledge gain, or other benefit, to individuals.

Because we know families’ and individuals’ trends, traits and habits, we can build personal relationships unavailable through media buying power. Russell Conwell, successful Boston attorney and founder of Philadelphia’s Temple University, said much the same thing more than 110 years ago in his timeless classic Acres of Diamonds. Much more important, We cross the chasm from lost customer to “powerful marketing ally” (read friend) by building personal bridges with customers. That's the secret weapon we use to recover from sales or service errors that occur in any organization composed of people.

Counterintuitive “Stealth” Strategy: l = c3


Logistics Equals Communications Cubed

Traditional business generation techniques take gobs of money many small businesses don’t have—to produce a 97+% failure rate! To solve this, let’s reverse the traditional advertising perspective. When we view business communications, lead generation, etc. "advertising" as a whole, from the customer/client/partner’s perspective an almost inverse correlation appears between information efficiency and effectiveness.

Broadcast media define the efficient distribution of a message as the lowest cost per thousand impressions. Traditional advertising studies, such as by Cahner’s Corp., demonstrate that we can affect decision making through advertising.

The Information Loop: You, Me, You

We know a powerful rule of thumb from warfare logistics: doubling our throughput, whatever it is, people, cars, bombs, fresh produce, requires not a doubling of our communications, or “message traffic” but rather cubing it! If we’re giving c amount of sales messages now, it takes not 2*c but rather c*c*c to double the resulting closings on our product! (This model assumes a free-market economy, skirmishes about which we won’t address here.)

Our purpose with relationship marketing: Speak directly to our customer. Because today’s sales channels are full, our message is drowned out or delivered in degraded form. Madison Avenue’s response has been simply “buy more of our product.” Buying advertising space is like renting; there’s nothing but receipts to show for our investment. Coca-Cola, Microsoft and AmericaOnline have proven millions of people can be persuaded to buy almost anything if we repeat the message long enough and loud enough.

Thankfully, we can achieve our results by a saner path. Not only does relationship marketing actually work better than advertising; it also returns piles of cash formerly spent on vaporous ad messages back in our pocket. This money then is available for staff incentives, equipment updates and upgrades, and whatever noble purposes we choose.

The reason for the diversity of messages and formats in this relationship marketing campaign is to fill communications channels with “new” messages, rather than just “more” messages. The process of scaling your revenues is by no mean easy. But it is very simple, very straightforward.

Inverse Effectiveness Graph of Traditional vs. Relationship Marketing

Our challenge: how to achieve brand loyalty in today’s ad-saturated world. We want more than business volume. We want client, partner, associate loyalty. We also want to invest in appreciating assets, not consumable media messages. That’s just good business sense.

The more effective, yet stealthy, message, is also cheaper in terms of money, not in terms of human effort.

Implementing a Relationship Marketing Campaign… 

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