As you can see there are various forces acting on customers to make them more or less close relationship-oriented. It’s the combination of these different forces that will inform you whether your customer is really close relationship-oriented, or simply looking for transaction.
The important point to remember is this. Not all customers want a close relationship. It depends on what they’re buying.
In my experience, the answer to this question typically is immediately apparent. For example, if what you sell is 1) not strategically important to a customer, 2) is not mission critical, 3) requires very little switching costs, and 4) is modular, then you are likely dealing with customers who don’t want or need a close relationship. They want a transaction…and the driving force of choice will likely be the best price.
But if these factors point to a customer who wants a close relationship, well you must be prepared for being a great partner in that relationship.
Now you might be able to understand the limitations of these auctions for all business transactions. Customers buying products and services that make them close relationship- oriented are not going to be interested in an auction. Auctions put the emphasis on price, but that’s not what close relation- ship oriented customers are interested in.
What they want is a partner who is willing to be there with them (remember they are now dependent on the seller), and such customers are typically willing to pay more for a good partner.
The follow-up question is what it takes to be a great partner of a relationship oriented customer, and this we will discuss in a future tutorial.
