Staff Writer 
Yolanda Malunga
A staggering 96 percent of unhappy customers never voice their complaints. Many silently leave and go to competitors, this is according to 1st Financial Training Services, which is often cited in customer experience studies.
The remaining four percent are filtered through the User Journey experience, which involves the step-by-step interaction that a customer has from hearing about the product, comparing it with competition, considering and eventually, purchasing the product.
In other words, during this decision-making process, it is very possible to lose the remaining percentage. Apart from an excellent product, people buy the experience, which is convenience and feeling.
If a product is excellent, but the salesperson is rude or the online purchasing process is faulty, the product itself fails.
Markets are often viewed as statistics of numbers, pricing and competition. There is a tendency to overlook the fact that beyond statistics are human beings who consistently deal with and rely on relationships. For any relationship to function, it requires Trust, Emotional intelligence and reliability.
Loyalty is recurring revenue
Seeing a potential customer return and become a regular depends on deliberate work done to retain relationships with the client. The inability to maintain relationships with clients and stakeholders’ impacts how the organisation is remembered, valued and eventually results in loss.
Client relationship retention is the link that affords businesses access to guaranteed repeat business. When an organisation knows how to engage with clients, product or brand loyalty roots deeper into personal loyalty. Equally with stakeholders, the business gains access to platforms and opportunities that they would otherwise spend resources on. This decreases their Marketing expenditure, while exposing them to greater potential growth.
Trust is Social Capital
When an organisation manages relationships, the clients and the stakeholders begin to care more about the brand. Trust inclines them to offer feedback whether they are happy or disgruntled. This allows the organisation to make necessary adjustments ahead of time.
A trustworthy organisation is reliable and predictable. An example of trustworthiness is honesty about whether a deadline can be met or not. If a client suggests a deadline that is not feasible, an organisation gains more credibility by being open about it. This means that they value the client’s interests more than income.
Such trustworthiness results in positive word of mouth, and as a result, the clients become powerful marketing networks. This results in social capital.
Reputation as Market Value
The question “What is a business known for”, does not only apply to their product or how much they have made. When a business is discussed, clients tend to refer to a personal experience they had or feedback from “reliable sources”.
One of the most widely cited pieces of research on the power of word of mouth is by the Keller Fay Group, whose studies have shown that word of mouth drives between 20 percent and 50 percent of all purchasing
decisions. Additionally, the seminal work by Jonah Berger, Contagious: Why Things Catch On, explores how word of mouth and social transmission are primary drivers of product popularity and brand reputation.
Berger’s research demonstrates that people are far more likely to trust recommendations from friends and family than traditional advertising, making word of mouth a crucial factor in market value and growth.
Attaining trusted feedback from people or businesses can impact reputation positively or negatively. Organisations must invest in ethical practices, transparency and customer satisfaction. These are not marketing adverts, but they communicate louder about how an organisation views their clients and community.
These values can either give market advantage or a negative perception. It is always easier to work on a positive market reputation than to repair one. Decisions that organisations make can plant defining memories in clients, even for years to come.
An example can be applied to an insurance company. When a client entrusts savings into an insurance company, they have invested into the client and invested into their future, sometimes for generations to come.
Failing to honour contracts with clients can gravely affect their dependents and reduce the organisation’s market value over time.
Stakeholder Retention as Organisational Memory that Benefits Clients
A business that constantly changes stakeholders resembles a person who cannot maintain friendships. One clear sign of loopholes within relationships is a high turnover rate. When a business neglects relationships, clients or staff-members consistently pull out. This results in loss of organisational memory, which typically addresses two different factors:
Structured Memory: Documented knowledge such as procedures, reports, databases, and policies.
While technology effectively stores documentation, continuously changing individuals who handle the documents can dilute the weight of information, especially when the originator is no longer present.
In some cases, there is a greater risk of losing confidential information to competition or the public when a key stakeholder changes organisations. While individuals naturally resign over time, positive relationships with the organisation retains loyalty to prior agreements.
When an organisation retails stakeholders, it retains information, clients really benefit. They get steady service, quick solutions, and a hassle-free experience. This consistency helps clients feel confident because they know their needs are understood and taken care of, even as the business evolves.
Over time, this builds trust and loyalty, making clients see the business as a dependable partner that cares about their success. While an organisation may be confident that they can always replace a stakeholder, in the long-term this becomes expensive and time-consuming. Clients begin to question the stability or reliability of the organisation.
They find themselves having to readjust to new faces and different approaches to working that inconvenience them. When retention of stakeholder relationships fail, it results in a weak brand reputation and consequently, reduced long-term profitability. Retention is cheaper than replacement.
Conclusion:
Building relationships is a powerful tool that is rooted from human connections to financial success. The good news is that these relationships, like any other marketing vehicle, can be strategised. These vehicles include relationship-building skills and specific marketing tools that show genuine appreciation for clients. Leveraging these tools not only deepens trust but also helps businesses anticipate client needs more effectively.
Malunga is a marketing specialist
