How does customer relationship affect business profits?

[Etini]

Customer relationship is simply when a business builds a viable relationship with customers beyond the transactions. When a business focuses on building strong customer relationships, it helps the business in so many positive ways which include:

1) It breeds loyalty from the customers towards the business: When a customer perceives that strong relationship with a business, they tend to be loyal to that business and brand. Humans are emotional and they connect more with things they have relationships with. Same applies to their patronage. They would always repeatedly patronize businesses that they have relationships with.

2) Customer Relationship leads to a positive reputation for the business and brand. Customers would always have positivity about a business that they have a relationship with. They would be ready to speak for the business and defend it because they have a positive reputation about the business.

3) The business would have more sales from referrals. That's because the existing customers who already have a positive relationship about the business would share their testimonials and recommend the business for their friends.

 

[Holicent]

Just like I said in the previous post, many things can go wrong or right depending on how you treat your customers, don't think your products are top notch so you don't care about your customers. People don't want to buy from where they won't be valued even while they give you their money. If they don't buy, you don't sell and there are countless places they can buy from. So before you choose to be on a rough part with your customers, think about the money, think about your business sustainance. If you have low customer, you have low inflow and have more tendency of losing more customers which will affect your profit.

 

[Leah Kelvin]

The most important thing in business profit-making is to maintain a good relationship with customers:

1. If a client is retained, there will be repeated purchases and the problem of customer defection will not come up.

2. Regular customers buy more products and are also receptive to supplementary sales.

3. Satisfied customers will spread word about products positively and become loyal representatives of the brand.

4. The marketing budget can be reduced through a strong alliance of this kind, since it is possible to make advert via targeted approach.

5. A satisfied customer facilitates feedbacks which enhance satisfaction and improve reputation.

6. Building strong ties with clients helps companies gain competitive advantage and high barriers to entry for others.

7. Effective support services and simplified operational processes lead to low operation costs when compared with competitors’ costs. In conclusion, investment in customer relationships can result in higher sales revenues, improved CLV (customer lifetime value), cost savings, as well as enhanced competitiveness for sustainable success and growth opportunities in the long-term future

 

[SHAHID123]

Customer relationship markedly effect on business profit or business loss. If this relationship is good then definitely it will results in good profit lest bad relationship with customers will always gives marked loss. I remember my general store business, when I started it my relationship with my customers was not good, I was bringing my home problems and stresses in my business so my dealing with my customers was not remaining good. Once I realized it then I changed my style and started smiling and dealing with them in very polite way soon the result started coming in extra ordinary sales of my products.

 

[Mikes smithen]

There is nothing interesting in business apart from making sure that you develop good and career relationship with your customers and clients. Customers and clients in business absolutely matters because, it is only when they come into a business to purchase what the business has to offer or to patronize the business that is of course when the business will make profits and stand the chance to grow and develop. However as a business owner it is important at you build and maintain cordial relationship with each and every potential customers because doing so will make them to trust you and to interact with you more informally about what your business can do for them.

 

[Phantasm]

It is vital for the profits of a business to develop strong customer relationships. Loyalty is important because it makes customers buy again from the same company and tell others about it. Every firm’s lifetime value of customers can be increased by creating sustainable relationships that increase spending and profitability. Word-of-mouth referrals can save on marketing costs while attracting new clients. To cross-sell or upsell businesses must understand customer needs hence improve revenue streams. Businesses with strong ties have pricing power thus enabling them to charge premium prices, resulting in healthier margins of profit.Above all, a company should build and maintain relationships with its customers, which will ensure constant revenues flow and long-term success.