April 25, 2013

Guest Post: Improving Relationship Connectivity

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Many companies, organizations, and sole-practices plan to expand at twice the rate of their underlying market - they intend to acquire a larger share of the market, rather than take on newer competitors. In the "battle economy" we currently exist in, everyone is battling it out for growth, an increasing base of valuable and loyal consumers; thereby, becoming a company or organization of strong value - an arsenal of loyal customers and in-house human capital.

To become the top competitor, whether as an individual or a multi-national corporation, you need to realize the full potential of your customer relationships and relationships with other institutions. Studies show that a 5 percent increase in customer retention can expand profitability by 75 percent. Beyond customer retention, companies need to foster a corporate culture that strategically plans to turn loyal customers into customer advocates. Creating a business system that encourages investment into customer retention and relationship management, improving relationship connectivity.

The main principle that echoes throughout these sentiments is "loyalty," which can stem from many areas of business practice. However, some CEOs and upper-management executives have stated that a company's loyalty stems from managing client and consumer relations. Profiting from relationship management is not a new concept, nor a ground-breaking notion that should cause shock and awe. It's a daily practice that, over time, increases consumer loyalty and fosters an environment of increased engagement and customer advocates.

There is real, quantitative potential in sustaining relationships with small, medium, and large clients. Through these practices you can generate lasting customer relationships and maintain an outstanding level of business to consumer engagement. Become a leader in customer relationships and loyalty and you will be at the front-lines of business engagement practices.

Bennett Resnik is a consultant on social capital and networks; teaching companies how to build, grow, and sustain social capital. He is an expert in networking strategy and has helped start-ups, small businesses, non-profits and individuals develop a comprehensive strategy to build and cultivate their social capital. Bennett advises his clients on how to locate and access social capital within their present networks and create a framework for future network strategy. Find him at www.thehandsweshake.com and Twitter