RELATIONSHIP AS AN ASSET

Doing business is not an easy exercise. It needs focus, time, resources and above all, good strategies. In these days of increased competition, mergers and acquisitions, high attrition of employees, continuing need for business process re-engineering and heavy impact of new technologies, the business leader is always on his toes.

Is that all? There are other possible difficulties such as tough customers seeking best deals (in price, quality, service, warranty etc.), short term horizon of employees, suppliers getting acquired, investors selling out, tough corporate governance, strict independent board of directors, very tough neighborhood and community etc are other impediments that the business leader has to face. Communication means such as Internet, e-mail, mobile phones, laptops and palmtops are revolutionizing the way business is done. Communication revolution is ensuring that everybody is getting connected and all have equal access to information.

Business ecosystem today goes beyond company, employees, customer and suppliers. Other stakeholders including investors, financiers, government and public at large have become very much part of the ecosystem. These multiple stakeholders are all wanting to be treated well.

All businesses are becoming more and more competitive. This calls for companies to spend plenty of time, energy and resources to come out with strategies for building and sustaining competitive advantages that help market leadership. Product, service and solutions are fine tuned, packaged and positioned well for the customer to buy and use them. As market become more and more developed and mature, the product differentiators become thinner and thinner. When everything looks the same, how would an offer of a company differ from that of its nearest competition?

It is here that Relationship comes in. When all offers look the same, it is the relationship that the company has built up with its stakeholder becomes a true differentiator.

Relationship is a unique strategic resource that cannot be appropriated, duplicated or stolen (which happens to product, process and technology). Thus, it becomes an irreplaceable asset.

When organizations manage the unique asset called the relationship it helps by building connections with people for reaching at mutually beneficial deals. Building the network of long term relationships through trust helps to form win-win outcome for both stakeholders. Relationship asset management helps to attract, retain, motivate valuable employees, boost effectiveness of sales, improve investor confidence (and therefore better access to funds), strengthen community relations, maintains positive media coverage, broaden available business opportunity and in all, strengthen the company.

HOW DOES RELATIONSHIP ASSET WINS FOR CUSTOMERS?

. Superior products and services that meet their needs and deliver value.
· Personal attention to individual needs and interests.
· Greater ease in doing business as suppliers and merchants come to know their needs and characteristics.
· Meaningful recognition for loyalty in the form discounts or useful premiums.
· Appreciation and if appropriate rewards for referrals, recommendations and introductions. · Lower “switching cost due to a reduced need to search out, comparison-shop and get to know vies suggestions and suppliers.
· Suppliers who will go the extra mile on rush orders, equipment breakdowns, or inventory shortages, and who will do everything possible to assure product availability.

HOW DOES RELATIONSHIP ASSET WINS FOR COMPANY?

· Lower sales costs due to an improved stream of referrals and reduced “churn” in the customer base.
· Improved ability to outmaneuver competitors due to better information on customer needs and closed integration with their processes
· Improved market intelligence from customers willing to share information on their peers and your competitors
· Increased sales on improved market share and greater “share of wallet”.
· Higher profits thanks to lower sales costs, higher volume in purchasing, and improved economies of scale in production.
· Customers who will understand and work with your during supply shortages, power outages, transportation breakdowns, or other disruptions.
· More opportunities to make friends and to help other parties in your Relationship Web.

Thought it is fact that each product, service or solution will deliver some value to customer, competition decreases the gaps between offers of participating companies. In such a situation, what delivers a deciding value will be the relationship between the customer and the company. It is therefore imperative that companies and organizations build and sustain relationship asset with its stakeholders, particularly the customers.