Discuss about the Relationship Marketing In The Service Sector Of Australia.
In this particular paper, a comprehensive review on the relationship marketing in the service sector of Australia has been provided. Some of the implications of market segmentation and loyalty of customers as relational strategies are evaluated. Service quality is one of the critical factors in determining the success of organization and in gaining competitive advantage. For conducting research on the importance of relationship marketing on the organization operating in service sector, a service organization named Speedcast International limited has been selected. Speedcast International limited is the company based in Australia and is one of the most trusted communication technology service providers to the advanced industries. The organization operates at global level and has its officers in countries such as Europe, Middle East, Asia pacific, North America and Australia (Speedcast 2018). It is found from research on this particular organization that a few relationship marketing initiatives have been undertaken for creating relationship that focuses on the development and advancement of technology within the IT services and communication sector. It is required to develop the relationship marketing initiatives for organization by targeting a particular segment. A relationship marketing programme for twelve month has been developed by taking into account some of the strategies of retaining customers (Motamarri et al. 2016).
Relationship market is exponentially more important in business to business because the number of viable and potential customer shrinks as the value of sales increases. The approach of relationship marketing in business transaction helps in generating leads that helps in maximizing the opportunities for making increased sales. Speedcast International limited is regarded as suitable choice for development of relationship marketing programme because in the current scenario, organization does not have a fully developed relationship marketing program in place (Speedcast 2018). However, organization has developed strategic partnership with the largest global platform for innovation and accelerator of start up. Such strategic partnership development depicts the commitment of organization towards innovation and accelerating business model development. Development of such marketing initiatives would help organization in building strategy that helps in alignment of lead generation activities and communication based on the target market. Therefore, it is required by organization to implement the initiatives of relationship marketing that would help in enhancing their business development.
The energy division of Speedcast International limited is expected to represent approximately 45% of the core service revenues and it is believed that company is well positioned to benefit from recovery of the sector. A 22% increase in service revenue is generated year on year despite the challenging economic conditions and a declining market. A multiyear service agreement was signed by a leading global energy service and this was the first implementation of service for an energy customer in China. Speedcast was also selected by a leading global energy services to provide support services and field engineering to areas across Asia, Europe and Asia. However, an extremely difficult situation is experienced by the energy sector and despite this fact, organization is well positioned for the upturn and winning the market share. The long term goal of Speedcast is to consolidate its position as leader in services of remote communications at global level with strong market share (Grönroos 2016). It is ascertained from the annual report that serving energy division by organization would add value in the long term. Therefore, Speedcast should target segment of energy division for development of relationship marketing programme.
The energy business of Speedcast International limited experienced limited growth in year 2016. In emerging low cost players in maturing industry of information technology services provider, it has been found that satisfaction of customers is becoming a way out to understand from low cost rivals. Any transactions that involve business to business as in the case of Speedcast International are complex because of the complex buying pattern of customers (Conradie et al. 2014). Therefore, it is required by company to develop specific strategies via the customer experiences for differentiating their services from their competitors.
The business activities of organization such as Speedcast International limited become complex because they are required to accommodate the special needs of small client base. Such relationship with the customers requires business to provide customers with extra services, specific tailoring and additional checks. The complexities of majority of clients can be minimized by splitting the journey into standard leading to significantly lower cost and easy journey for clients.
Before the implementation of relationship market programme, business to business marketers are required to understand the need of clients. The service companies under the energy sector are targeted using the programme of relationship marketing for providing a global connectivity to service companies located in different parts of world. In order to ensure continual connectivity, the relationship marketing programme should incorporate the function and operations that support customer service and focus on reliability.
One of the most important characteristics of B2B markets is a limited number of potential customers firms that encourages the development of long term relationship with their clients. The programme of relationship marketing encourages increased level of interactions among the partners in association with the individual requirements. Energy division of organization is the core service revenue of the group. In addition to this, the program of relationship marketing would be to offer customized products. The program can also incorporate the efforts that focus on serving customers who desires to be environmentally conscious. It will be provided by such certifiers that the organizations operating in energy sector such a service companies will be distributing and purchasing energy from green sources. Such program will be providing information related to energy conscious through the websites, newsletters and interactive voice messaging system. Function of customer service can leverage information to provide relevant product specifications, set up process and supporting the installation, providing customers with the level of support requested by them, customizing products and services (Roy et al. 2016).
The relationship marketing programme has been developed for Speedcast International limited that has the objective of consolidating the competitive advantage of organization in exploiting market trends in the service companies of energy sector and providing customers with additional offerings to carrying out their business in an environmentally friendly manner. This particular value proposition in the form of building relationship marketing programme includes a contribution in the development towards modernization and industrialization. The brand value of organization is clearly emphasized through its offerings of services and products and the organization is uniquely placed as strategic business partners that helps in tailoring the digital, information technology and communication for enabling the transformation of business.
The development of relationship marketing plan of Speedcast International limited some of the steps such as analyzing the current market, determining the objectives of business, key strategies, and steps for achieving the objectives, proposed budget and timing of the budget.
Analyzing the current market of organization- Speedcast International limited is positioned as the largest provider in the IT services and remote telecommunications in the world by providing multi access technology, extensive ground support and interconnecting global terrestrial network. However, all such services are common to all the business divisions that organization is serving currently. Development of unique offer is a key challenge for Speedcast limited in a bid to gain competitive advantage and potential threat from any large organizations offering similar services.
Objectives of business- It can be seen that the main relationship development strategy employed by organization has been the appointment of partnership approach for developing relationship with the clients and providing them with different services. For companies operating in energy sector, the factor that is affecting the customer relations are energy management and building automation. Large industrial and commercial customers want to get the benefits of better solution of communication and energy control system. The go to market strategies are framed by customer based on insights gained from market instead of only relying on the simple backward facing insight (Payne and Frow 2017). Therefore, the objective of organization under the relationship development program intended to energy division would be to develop the mechanisms of enhancing communication and energy control system. Hence, customers would be targeted with special offers that are the integrated control system and communication. Therefore, the customers of energy sectors are targeted with special offerings.
Key strategies- Speedcast International limited can employ the strategy of using the customer relationship management software. This software would enable organization to view the history of customer purchase that can determine what kinds of offerings are most attractive to customers for increasing relevancy. Another strategy can be the recognition of energy ecosystem on the board that is interconnected for navigation purposes. Therefore, the best value creating strategy is to remain largely focused on their existing products excellence.
Traditionally, there has been lack of planned marketing approach at Speedcast International limited. The strategy under the program of customer relationship program is selected with the aim of developing value of any single customers and thereby gaining competitive advantage in the market place. Such marketing strategies would provide benefits to authorities by providing better chance of maintaining customer base. Retention of customer is cheaper than the acquiring new customers. Improving the retention of customer through improve service could have the significance of improving life time value for customers (Ruben and Paparoidamis 2015). However, for increasing the lifetime value of customers, some other strategies that can be employed by organization are as follows:
Making existing customer advocates- One of the most powerful methods of advertising is creating customer referrals through promotions and advertising.
Extending lifetime value through brand value- Brand loyalty is one of the measures through which the lifetime value of customers can be extended. This makes them avail the service offerings from the same organization.
The marketing tactics employed by organization for creating relationship with their customer’s base is employment of approach of strategic partnership. Such strategic partnership helps in the development of business models and new technologies. For instance, the relationship of Speedcast International limited with Plug and Play demonstrates the commitment to innovation. Such relationship helps in accelerating the innovative capabilities of organization and building a collaborative environment by focusing on technological innovation (Payne and Frow 2017).
The existing marketing tactics is mainly focused on development of strategic partnership with some external clients. It is required by organization to convert the intuition into energy and marketable knowledge that signals differentiation in experiences of customers along with expanding customer relationship and generation of enhanced revenue streams. With reference to the energy division on which Speedcast International limited intends to create sustainable relationship (Wirtz and Lovelock 2016). It is indicated by the fact that customer relationship and energy management becomes far reaching due to the automation of energy management and enhanced communication.
The relationship marketing program that is incorporated by Speedcast International limited targeted to energy division is providing customers with customized options for energy management and enhanced communication. The key marketing metrics that can be determined by well aligning with the identified strategies of relationship marketing program of energy division. The energy division of organization is facing some challenges in the current scenario that can be addressed by collecting the metrics across the value chain of organization. The strategy will help organization in unlocking a new environment for management of energy for empowering the business to leverage the opportunity of sustainable investment within their value chain (Chesney et al. 2017). Therefore, some of the sustainability marketing metrics can be added by business in their efforts for energy management for its target segments.
Some of the marketing metrics are listed below:
Development of such market metrics would provide benefits to organization by management of energy so that an automated platform is developed by company. The market of energy management is advanced by development of relationship marketing programme by seamlessly integration the data across the systems of working (Nasution et al. 2014).
Conclusion:
From the research conducted above on Speedcast International limited, it can be inferred that the energy division is one particular segment of organization offering greatest value. Hence, it is required to enhance the relationship with customers by development of relationship marketing programme. Such relationship can be enhanced by development of mechanism of energy management. This is so because service companies operating in energy sector are environment conscious and they want to keep a track of their operations on environment with energy management efforts most valued. Therefore, the relationship development programme intends to offer customized service by offerings measures to manage the resources such as energy. In addition to this, some strategies also include development of specialized platforms for increasing speed of flow of communication to serve them in an adequate manner.
References list:
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