Through the case study of Kiwi Insurance to clarify the importance of relationship marketing for an organisation.

Essay by stella2004cn May 2004

download word file, 7 pages 3.0


In recent years, an increasing number of firms have recognized the importance of establishing and maintaining relationship with their customers. Many of them have begun to change their emphasis from transactions toward long-term and mutually beneficial exchange relationships. People prefer to call it "relationship marketing" which is "based on talking with consumers, listening to them, learning their wants and catering to them." (Bellas. 1994) Customer relationship is one of the essential factors in the whole relationship marketing. This essay will discuss the importance of the customer relationship and how to satisfy the customers.

Case Analyze

According to the case, Kiwi Insurance should take the responsibility to concern and control the complaints from site. Just like members in Group 2 mentioned that negative word of mouth might make distrust to their company. As the time goes, all the customers will get information from instead of listen to them. "In business, timing is everything, and in today's ultra-competitive, technology-driven environment, there's only one acceptable speed: fast."

(Proctor. 1996 p186) Therefore, the earlier the Kiwi Insurance obtains the complaint from site, the quicker for them to repair the relationship with dissatisfied customers, as well as give their marketing or customer service departments a jump on formulating or revising long-term satisfaction and loyalty plans, then avoid the unexpected results come. They should choose 2 or three persons who have sound understanding of customer's expectation to form a group to deal with the complaint from web site.

As to the word of mouth, it is very powerful, often more powerful than the planned communication from marketing organizations, it often influence the customer's future buying decision. "Personal influence usually carries great weight for products that are expensive, risky or highly visible." (Kotler., Brown., Adam., & Armstrong. 2001 p215) Bad word of mouth travels farther...