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Sales Relationship

In: Business and Management

Submitted By squeakums
Words 1004
Pages 5
Sales Relationships How would you define a sales relationship? Sales relationships are about building long-term relationships with customers and the process does not happen overnight. Sales relationships can be built by reaching out to customers, offering rewards and incentives to come back to the company to purchase more products, and offering the type of customer service that customers love to receive. This paper will discuss sales relationships and compare and contrast the cost of customer retention verses customer acquisition.
Business-to-Business Retention and Acquisition Business to business sales can be astronomical. An example of a business to business transaction is a small company selling a large amount of product to the Wal-Mart Corporation for Wal-Mart to market in all of the organizations stores. Wal-Mart strives in selling the merchandise for a low price but wanting to make a profit in bulk. The benefit about Wal-Mart is that the company can be very beneficial to other patent holders because of how fast Wal-Mart can sell an item once the item enters the company’s doors. Another company that should be explored is Sam’s Club (which is owned by Wal-Mart). Sam’s club on the other hand allows consumers to purchase in bulk for his or her small business. The point that needs to be brought up is that at least half of the profit that Sam’s Club brings in the doors is from small business accounts. Sam’s Club offers bulk refills to candy machines and the ability to even purchase a vendor or candy machine. But, that is just beginning of Sam’s Club sales. “Year to date, Sam’s Club estimates it has identified more than $233 million in savings for Small Business and since the launch of its Small Business Savings Drive last month, Sam’s Club associates have contacted more than 80,000 small businesses to help them identify ways they could be saving” (Sam’s Club, 2009, π 6). Since most of Sam’s Club business comes from small businesses the organizations desire to keep those businesses coming back is very important to Sam’s Club. In order to retain customers Sam’s Club will send out flyers on a monthly basis of new products and sales available in the store. Small businesses are allowed to receive a higher discount off of products if they hold business accounts. In turn, Sam’s Club will charge an annual fee to small businesses in order for that business to shop at Sam’s Club. The idea is somewhat ingenious. Customers are generally very loyal to Sam’s Club because they offer such a unique package and ability to purchase items that would be very hard to come by in small cities. On another note, is customer retention the right route for Sam’s Club or is customer acquisition better? Customer retention means being able to keep loyal customers that shop at Sam’s Club on a daily basis. On the other hand, customer acquisition is the idea of bringing in new customers or prospecting for new customers. Is the cost of keeping customers at Sam’s Club worth the risk? Keeping customers loyal to company’s like Sam’s Club is an advertisement a very unique genre. If the customer sees something that is worth telling other businesses about loyal customers can in turn bring in new customers. Therefore, in a business-to-business environment customer retention is often more important that customer acquisition.
Business-to-Consumer Retention and Acquisition
Businesses to consumer transactions are more unpredictable than business to business transactions. Businesses are unable to predict if a customer is going to come back and purchase more items. This is especially true at specialty stores such as swimming pool stores or shoe stores. This is why customer retention and customer acquisition is equally important to in a business to consumer relationship. Business can spend half the cost on retaining customers by offering excellent customer service, loyal customer rewards (such as reward cards), and overall customer satisfaction. Basic tools such as this are used to retain customers. An example of a business to consumer transaction is through companies such as (an online company that is dedicating to offering the best cost of flowers and fast delivery service). Consumers may use FTD on a regular basis, or they may use FTD just once. FTD has a unique advantage in keeping customer retention. In order to purchase from the company FTD requires an email address. Once that email address is put in FTD then sends on a daily or weekly basis an email of their special offers for special arrangements. Woman all of the world may be receiving these emails and taunted by the idea that they must order flowers. This type of retention may not be the best type, but it is often the cheapest.
Customer Retention Verses Customer Acquisition T o break down the process in a nut shell here are pros and cons between customer retention and customer acquisition:
1. It is often more difficult for businesses to acquire new customers and more costly.
2. Happy customers will often tell their friends of their experiences at the business.
3. Customer acquisition is very unpredictable.
4. A percentage of new customers will make a large purchase as a first time buyer at a business.
5. Although, loyal customers will purchase more in bulk over a year or two compared to new customers.
6. Loyal customers can offer the benefit of word of mouth.
After comparing and contrasting between customer retention and customer acquisitions the resolution seems to be focused more on customer retention. Even though customer acquisitions are new and can be profitable, customer retention can offer so much more to businesses in search of higher profits.


Sam’s Club. (May 18, 2009). Press Release: Sam's Club® Simplifies Small Business Membership Offering. Article retrieved on October 12, 2009, from http://pressroom.Sam’

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