Explain Relationship selling with one example.

 Relationship selling refers to the sales technique that focuses on the interaction between the buyer and the sales person, rather than the price or details of the product. Arguably, all three remain critical for any sales activity, but the status of the relationship can increase consumer loyalty as a result of familiarity and personality of the sales person.

“This sales technique is prominent for companies selling products and services that rely on repeat business from customers, such as insurance policies, or private instructors, such as dance or music. These individuals are forced to compete on the level of quality and price; however, it they make good relationships, their customers will continue to buy from them as a result, sometimes regardless of price. 

“In the traditional sales approach, the goal is to make the sale, and that is the end point of the buyer/seller relationship. Marketers realized that the sale is not the end point and, in many situations, is not the end goal either. In actuality, the sale is the beginning of what many companies are looking for: a long-term relationship.” These long-term relationships turn to profitability for companies and are referred to as ‘ongoing relationships.

For example, real estate agents or lawn care services are not seeking one point of interaction with you. They strive for a longer relationship that produces future interactions (not to mention recommendations) and profitability for their business.) Relationship sales are often used for high-ticket items where customers might want to spend more time thinking about the product or service. The seller would wait until they’ve built up a trusting relationship before attempting to close the sale. 

Importantly, relationship-based sales can also help sellers stand out from others, especially where perhaps their price is more than competitors, or their pricing is very similar. Let’s say you’re a company that relies on repeat business; the best way to get it tends to be to form a strong relationship. It’s a point of difference (and hopefully a competitive advantage!) that you now have.

This works for products or services that aren’t necessarily high-ticket but might have a number of competitors, too. Why do you choose to stick with the same gym year after year? Or the same music or dance teacher? If you’re not under any sort of contractual obligation, you’re making a choice to stay and that often comes down to the relationships you have built.

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