Crash Course Business: Nurturing Customer Relationships

Introduction

• Importance of nurturing the relationship between business and customers
• Customers have expectations; delivering on these is key to success
• Various types of customer-business relationships

Types of Customer Relationships

Transactional Relationship

• Minimal interaction, often automated (e.g., credit card machine)
• Both parties have limited involvement

Self-Service Relationship

• No direct contact, but equipment provided for self-use
• Examples: self-pump gas stations, self-serve frozen yogurt shops

Automated Services

• Personalized using customer profiles
• Examples: Goodreads book suggestions, Hulu movie recommendations

Personal Assistance Relationship

• Real human interaction for help during or after sales
• Examples: Live chats, skywriting, emails

Dedicated Personal Assistance

• Specific representative for each client
• Creates deeper, long-term bonds
• Examples: Local tax accountants, insurance agents

Loyalty Programs

• Retain customers through rewards and incentives
• Examples: Gym memberships, loyalty punch cards for free items

Long-Term Relationship

• Built over time with regular interactions and emotional connection
• Examples: Patagonia fans

Co-Creation Relationship

• Companies collaborate with customers to develop products
• Example: YouTube creators

Community Building

• Customers exchange knowledge and interact, strengthening bonds
• Example: Online communities

Deciding on Customer Relationships

• Businesses should determine which type of relationship fits their needs
• Relationships can be multifaceted and aren’t mutually exclusive
• Example Comparison:
  • The Running Company: Personal assistance, loyalty programs, community building
  • Salesforce: Dedicated personal assistance, high switching costs, loyalty programs

Case Study: Ashlyn’s Bike Repair Service

• Natural personal assistance relationship initially
• Transitioned to promoting self-service through clinics and DIY sessions
• Developed community through free rides and clinics

Conclusion

• Plan customer interactions and be ready to adapt to feedback
• Next session will cover marketing strategies

Sponsorship

• Crash Course Business is sponsored by Google
• Promotes Patreon community for support

Additional Resources

• Crash Course Sociology for broader understanding of social groups and relationships