Consumer Relations

Posted in Marketing and Strategy Terms, Total Reads: 303
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Definition: Consumer Relations

Consumer relations are the relations which a company has with its consumers. Once an individual buys a product or a service form a company, the kind of bonding between the company and its consumer is the consumer relation. Consumer relations are important for companies for having a long term relationship, getting a feedback, spreading positive word of mouth, increasing brand loyalty, having a positive brand image etc.


In today’s world, customer is the king. All the strategies in every organization are customer centric strategies. Although firms want to earn huge bottom line, but they understand the role of customer if they want to achieve the profits. This is the reason why many firms (including top fortune 500) are shifting their focus from product centric to service centric. Although, good products sell a lot but, with good service even an average product can be a winner. This is the reason why once a product centric firms like IBM, Otis, Caterpillar are equally focusing on services they offer.


The reason why services are most important now is because it’s the point where customer interacts with the employees of an organization directly or indirectly. Therefore, stronger customer relationship gives organization a competitive advantage over others. Customer relationship has been so important because a lot of information about the customer’s perception about the organization/product can be easily collected.


Few advantages of good customer relationships are:

1. Collection of grievances/complaints of customers.

2. Easily collect the response of any new product launched.

3. Get idea about the latest needs of the customers.

4. Retain more customers and builds loyalty.

5. Helps in building a brand.

6. Easy to promote.


Nowadays we see firms calling/mailing to rate the service provided, this is also a part of customer relationship. Whether, the business is a large multinational or a mom and pop store, customers are deal with those businesses that offers best customer service. So, it is necessary to understand that in order to retain customers for longer period, businesses should interact with the public and also cultivate good relations in order to achieve higher topline and bottom line.

Hence, this concludes the definition of Consumer Relations along with its overview.

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