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Sunday 25 March 2012

Relationship Marketing: Beyond the Happiness (Part 1)

What is happiness? How can we make people happy? Does money bring happiness? These questions are important since at all senses people live seeking for this big thing. There is no absolute answer to define happiness as it differs for each and every person. Thus the way to make people happy would also be  different. Nevertheless, there is one powerful thing that people might consider be able to bring happiness. Yes, that is money. But why are there some rich people who are not happy and meanwhile yet the other poor people seem to be happy enough?

In Economics, one of three basic concepts is utility. The law of diminishing return shows that to consume a same product/service will bring increasing utility to a certain point and then decreasing afterwards. (Eating ice cream brings a person more utility until, for example, three ice creams, then the utility decreases). Utility is a very essential thing because that is the ultimate goal of all economic activities. To bring more happiness to people is for sure the final objective for all businesses on earth.


Drawing back to the issue about money stated at the beginning, I would like to give an illustration. Toyota Alphard is considered to be one of the most luxurious cars available in Indonesia. If one is given that car, will he be happy? Yes, you are right, it depends. With an income less than $6000 a year, I will be immensely happy indeed to have that car as a gift. Yet my friend who earns more than $100.000 a year will have a different increased level of happiness. The difference lies on expectation. I would never expect to have such a luxury car, but my friend must expect more than Toyota Alphard!
In Marketing, utility and happiness are related to satisfaction. Most of marketing activities will bring expectation for customers. Advertising gives promises. Brand gives a good image. Thus, a customer expects a certain amount of satisfaction for a product or service. The only way to make customers satisfied is to give more than they expected! It is a good thing that people expect that the food is delicious at a restaurant, but the great marketing would deliver more than delicious food (e.g. live music, charming waiter, etc.) and the customers must get more than they expected.

Interestingly, the job of a great marketer does not end at the deliverance of satisfaction. “Beaute’s Salon is great! I would come again to this place!” said a woman. That saying must be a result of satisfaction gain. However, that same woman might say, “Beaute Salon? Umm.. I am not sure how good the service is!” The possibility is there. There is a chance that a customer forget how satisfied she was after a period of time.

Therefore, this is the next marketers’ job: creating a customer relationship program. Price, advertising, and brand make promises. The product/service delivered enables promises. At last, customer relationship keeps promises. The goal of this program therefore is to maintain long lasting relationship between the business and the customers.

How can they make it? There are various ways and techniques. The traditional ones include direct mail, targeted e-mail, or telephoning (it is now important to have permission should they would like to receive any of those). However, maintaining relationship is not always about communication. There are several other ways. Marketers might design a member club card that charges but gives benefits to customers. Supermarkets and sport centers often use that method. Marketers can also offer points reward for every purchase made by customers. Transportation business such as airlines and travel sometimes use this method. At last, sales promotion and advertising (a general one that reminds audience of its business) will also do their roles in customer relationship program.

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