Customer Relationship

From Open Risk Manual

Definition

Customer Relationships describe the types of ongoing interactions a company establishes with a specific Customer Segment.

This Business Model component recognizes that in many cases the interaction with clients is not an instant and anonymous transaction (as it is for example in a trading business model) but is instead an ongoing process.

The types of customer relationships include approaches such as: Personal assistance, self-service, automated service, communities, or co-creation.

Customer Relationships are supported by company processes and are contributing to the Cost Structure. Relationships enable or enhance client acquisition and retention thereby contributing to the Lifetime Value of the client (See Revenue Streams). They contribute also to the Value Proposition for customers. For example, trust and loyalty to the brand or status of the firm is an aspect of the customer relationship and loss of such trust can severely impact the business model performance. Better customer relationships will in general lead to more clients and revenue.

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