Relationships Marketing: a new paradigm for marketing of schools

Transcription

1 Relationships Marketing: a new paradigm for marketing of schools Lawrie Drysdale University of Melbourne Published in Principal Matters: The Official Journal of Secondary Principals Association of Australia September pp36-37 Relationship marketing is based on the realization that it is just as important to keep current customers as it is to attract new customers. This is particularly important for schools; parents and students exercise their right to move to a school that achieves their desired outcomes. In developing a marketing strategy it is important for a school to keep a balance between both retaining and attracting students. The Emergence of Relationship Marketing as a Key Strategy Relationships marketing is currently seen as the dominant and most effective approach to the marketing of services. It is said that it is the biggest shift in the development marketing for fifty years. It is especially relevant to non-profit and service organisations such as schools, but it can equally apply to goods and industrial marketing. While it is regarded as a new term it is in reality an old phenomenon. It is a rediscovery of an ancient practice the building and maintaining of relationships. What is relationships marketing? Relationships marketing is a strategy that attempts to establish, develop, enhance, and maintain relationships and involve people over the long term so that they are loyal and supportive of the organisation. The key aspects of relationships marketing revolve around three core aspects: Building relationships Retaining current customers

2 Recognising internal and external markets Building relationships Building relationships is a central component of relationship marketing. The essence to building relationships is the way the members of an organisation interact with their customers (students and parents) with the emphasis on relationships as opposed to transactions. The important difference between marketing as a transaction compared with marketing as a relationship is highlighted in the table 1 Transaction marketing Relationship marketing Focus on single sale Focus on customer retention Orientation on product features Orientation on product benefits Short timescale Long timescale Little emphasis on customer service High customer service emphasis Limited customer commitment High customer commitment Moderate customer contact High customer contact Quality is primarily concern of Quality is concern of all production Table1 Adrian Payne (1993) The Essence of Services Marketing p. 32 Retaining customers In relationships marketing keeping current customers is just as important as attracting new customers. It is far more cost effective to look after the customers you have than to seek new ones, in fact, winning new customers can be up to ten times more expensive. In relationship building the focus shifts to building long term relationships where the customer is encouraged to continue their involvement with the organisation. This provides the opportunity for an institution to maximise its interaction and enhance the opportunities for mutual benefit. Today numerous organisations have established a range of loyalty programs, such as credit points, discounts and fly-buys to lock people into the organisations. To foster this loyalty in schools requires

3 commitment, trust, diligence, reliability, honesty and benevolence. Yet the payoffs can be substantial, for example, to build a strong relationship with a current student can result in that student becoming a life long customer adviser, influencer, supporter, life long learner, donor, future parent and candidate for other services offered. The customer loyalty ladder (Figure 1) illustrates the benefits of relationships marketing and the importance of establishing a balance between keeping customers and seeking new customers. The ladder shows how it is possible to turn customers into regular clients and then through building sound relationships, progress up the ladder to where they can become strong advocates who will promote and support the school.

4 Figure 1 Peck, H., Payne, A., Christopher, M., Clark, M. (1999) Relationships Marketing Page 45 Internal and External Markets The third important feature of relationships marketing highlights the need to recognise internal and external markets. A school has an internal market that is made up of teachers, staff members, associates, committee members, and supporters of various kinds who are essential to a school s success. Relationship building needs to happen on this level as well as with the customer markets. There are a number of other external markets besides the all important customer market (students and parents). For example, there are influencer markets - political groups, pressure groups, the media, unions, and various associations that have an interest in the school. The referral market is another market that may consist of existing customers but can also include people who may steer customers your way such as past students, real estate agents, consultants, local traders, feeder schools, and service organisations. Another market, which is often neglected, is the recruitment market. This market maybe identified as the scare resource of highly skilled administrators, teachers and consultants who are potential employees. To establish and maintain relationships within this market is critical in ensuring a school s success. The supplier market is also important. This market refers to the suppliers who under the principles of cooperation are often brought into the organisation as partners, collaborators and sometimes joint-venturers. Sound relationship building with computer suppliers, clothing manufacturers, furniture manufacturers, sporting goods retailers, service clubs, and sponsors etc are vital. Conclusion There are three key messages that relationships marketing can offer a school: build and maintain relationships over the long term; pay as much attention to keeping current customer as to attracting new customers; and finally recognise that there are a number of markets which require a attention. Over and above this school

5 administrators should recognise that relationships marketing is not just the domain of an individual, small group or committee within the school, but is everybody s business. The most effective from of relationships marketing is where there is a culture of respect and concern for building genuine relationships where the needs of people become paramount. References Payne (1993) The Essence of Services Marketing Englewood Cliffs NJ Peck, H., Payne, A., Christopher, M., Clark, M. (1999) Relationships Marketing Butterworth Heinemann Drysdale, L. (1999) Relationship Marketing: A New Paradigm for Marketing of School, Principal Matters: The Official Journal of Secondary Principals Association of Australia September pp36-37