Consumer Relations - Meaning, Importance & Example
Published by MBA Skool Team, Last Updated: September 07, 2021
What is Consumer Relations?
Consumer relations are the relations which a company has with its consumers in order to have a long term relationship, getting a feedback, spreading positive word of mouth, increasing brand loyalty, having a positive brand image etc. 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.
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.
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. The entire field of CRM (Customer Relationship Management) is built around this concept.
Consumer Relations Example
After you buy a product or use a service, the companies give you discount in case you buy again from to strengthen the relation.
Many a times if you refer a new customer, you get a gift or additional benefits to use the service further. There are multiple examples where the companies try to improve or build relationships with customer to enhance the experience and improve the product.
Advantages of Consumer Relations
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.
Hence, this concludes the definition of Consumer Relations along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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