Many Factors Leverage the Effects of RM on Gratitude: Enhancing Returns (Palmatier, Jarvis, Bechkoff, and Kardes 2009)
Together determines effectiveness of RM See The Role of Customer Gratitude in RM to understand how it works (experiment and survey)
Higher Payoff when RM Program Operates in the “Social” vs. “Financial” Domain
RM Investments Factors Leveraging RM Investments (Palmatier, Gopalakrishna, and Houston 2006)
180% ROI Negative ROI 100 to 120% ROI [313 customers across 34 different firms]
Social RM Structural RM Financial RM Controls Interaction Frequency Customer loyalty CRM use Profit share by salesperson Incremental customer return (CLV)
Other Factors are Also Critical When Building Interfirm Relationships
Selling Firm Customer Firm Contact density- number of relational ties with an exchange partner
(network density)
Relationship quality- caliber of relational ties (tie strength)
Contact authority- decision making capability of relational contacts (attractiveness or social capital)
(Palmatier 2008)
Social Network Perspective of RM
Density and Authority of “Relationship Portfolio” Impacts B2B Performance
Relational Drivers Customer Factors Leveraging the Impact of Relational Drivers (Palmatier 2008)
[313 B2B relationships matched to objective performance data]
