plz explain me 4Rs(marketing)
plz explain me 4Rs(marketing), what are the 4Rs, and some details about it.(in English plz)
plz some more details
- 2 decades agoFavorite Answer
ok, so I tried to find the explanation for 4Rs and I found several of them :p
This one is the most clear one that explains 4Rs, so I post this for u...
"4Rs" -- relationships, retention, results and rewards.
The sequence is important…relationships lead to retention; retention improves business results; and superior business results generate superior rewards for shareholders, employees, channel partners and customers
Relationships always drive business results. Buying decisions, and more importantly, repeat buying decisions, are made based on individual and brand relationships. When an authentic, emotional bond is forged between buyer and seller it creates a powerful marketing tool for repeat business, referrals and up selling.
Relationships cannot be bought or easily achieved. They take time, consistency and a strategy to nurture and capture individual preferences and habits. In the end, relationships will overcome most competitive threats, like a lower price or better product. If you are not investing in relationship-building strategies and programs with your employees and customers, chances are your competitors are. After all, relationships are the primary asset of the enterprise. Retention of valuable customers and employees is the hallmark of most successful companies.
Retention is the most critical driver of profit expansion. The cost to replace lost customers and employees is astronomical. Studies indicate that it costs five times more to gain a new customer than to keep an existing one, and ten times more to get a dissatisfied customer back. And every employee replacement costs an average of 50 percent of annual compensation. In addition to the cost factors, loyal employees and customers become advocates for your company, creating new sales opportunities with newly referred customers.
The popularity and success of loyalty programs is evidence of the importance of retention. Consider the 80/20 rule; 80 percent of a company's business is sold by 20 percent of their salespeople, managed by 20 percent of their employees and purchased by 20 percent of their customers. You can't afford not to create special offers, promotions and packages to ensure ongoing service and patronage of these key groups.
Results are all that matter. In real estate it is location, location, location. In business it is results, results, results. Innovative thinking, solid sales presentations, teamwork and new processes are all important business ingredients, but at the end of the day they are only as good as the results they generate. Was a sale created, is the sale or customer profitable, was the customer retained, did the product or service exceed expectations? The answer to these and other critical questions determines marketing results. Determining those marketing results is no easy task. Yet, if marketing programs are not measured, then they are not being effectively managed and stand a good chance of being reduced or cancelled.
Rewards and recognition are like oxygen. Rewards and recognition leave a lasting imprint with people. Jack Welsh, past CEO of General Electric, once said, "any company trying to compete must figure out a way to meaningfully engage their employees and customers." Rewards are an ideal engagement tool. It is common sense, and good business sense, to reward faithful and loyal employees and customers who contribute to a company's success and have the potential to offer much more in terms of future growth. Rewards based on results, and incremental results, are cost effective and self-funding, creating a win-win relationship and improved retention.Source(s): Clarkson Mkt. Group