Customer Relations: Definition & Concept

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  • 0:02 What Is Customer Relations?
  • 1:01 Example
  • 2:48 Lesson Summary
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Lesson Transcript
Instructor: Shawn Grimsley

Shawn has a masters of public administration, JD, and a BA in political science.

Cultivating customer relations is crucial to the success of any business. In this lesson, you'll learn about customer relations including some of its key concepts. A brief quiz follows the lesson.

What Is Customer Relations?

Customer relations is the process and manner by which a business develops, establishes, and maintains relationships with its customers. Businesses rise and fall through the support of their customer bases. Consequently, it is absolutely essential that you develop effective customer relations. On a practical level, customer relations is effectively communicating with your customers and promptly addressing complaints and treating them as opportunities for improvement. In other words, listen to your customers!

On a more strategic level, many believe placing customers at the center of all of your business activities - including product design, quality, and pricing - is a central component of building effective customer relations. In other words, you need to see the world through the eyes of the customer, with them at the center and your role as serving the needs of your customers.

Example of Customer Relations

Let's say you're able to retire a bit early at 55. You really don't want to retire, you just want to do something more to your liking and become your own boss. You love fishing, so you decide to start a fishing equipment company with a focus on the manufacture of both bait and fly casting rods and reels. Before you even begin, you utilize a rather informal focus group consisting of ten of your fellow anglers to discuss what they like and don't like regarding the current selection of fishing rods and reels. You also find out what they think is missing. You use their responses to develop a product line that you feel will meet your customers' needs.

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