Blogs tagged "relationship"

Mark D. Flanagan • April 20, 2016 • price, relationship

Arthur Middleton Hughes of the Database Marketing Institute has written a article that suggests that companies should make a clear distinction between two types of customers: Transaction Buyers, who buy only based on price, and Relationship Buyers, who buy based on the quality of product, service, and reputation.

Hughes points out that the concept of attracting new customers solely with low prices rarely works: those new customers will always hop to the next low price vendor, and never contribute much to profits.