Service Relationships and How to Build Customer Relations
The story of Ming Hua, the rice merchant, demonstrates significant aspects of a service perspective on business, and includes all basic elements of a relationship approach to customers. Service is support for customers individual processes in a way that facilitates their value creation, and this support is enabled when knowledge and skills are used on resources.
The ultimate goal of service-based business is to facilitate value creation for the customer, which in return enables the service provider to capture value from the relationship,
To become a service provider, the resources of the firms offering can be of any kind, such as physical goods service activities information, or combinations of these and other types of resources.
It means that value creation is both sided process if customer don’t support the value creation process then value is not been created.
Key relationship characteristics
The service provider and customer engage in long-term business contact.
The relationship requires that the service provider gains customers everyday processes.
Rice Merchant changed his role from a transaction-oriented channel member to a service providing, value-supporting relationship manager.
Transaction means we buy the product and then use it whatever it provides like a product purchasing with money in the other with the product service is attached and value is created by delivering service
The commercial outcome of a business can be described with three elements, namely revenues, costs and capital. A firms profitability is a function of all three elements, whereas the profit level is a function of the revenue generation capability and the cost level
A marketing strategy