Why I Prioritize Relationships Over Business

When I used to work in healthcare, we sent out a monthly newsletter to hundreds of thousands of people. This newsletter included items such as recipes, tips for preventing cancer, car seat safety, and much more. It was a resource for health and wellness, not just a promotional advertisement for the services we offered like hip replacements and being a nice place to get your appendix out.

At first, I thought this was odd. If people stay healthy, then they won't need a doctor, right? If they don’t need a doctor, then we don’t get paid… but this was an example of relationship-first business. The goal was to build a relationship with the public, not just to sell them services. The aim was to have people trust that the network was looking out for their best interests, not just trying to make a profit. Then, if people trust the network, they will turn to them when the time comes for that hip replacement.

I firmly believe that relationship-first business matters. That’s why, when I started my company, I prioritized meeting people where they are, listening to their needs, and creating the best possible product for them.

What is Relationship-First Business?

Relationship-first business focuses on building long-term relationships with customers rather than just making quick sales. This strategy is about understanding what customers need, providing consistent value, and creating loyalty. The goal is to build meaningful connections with customers that go beyond just buying and selling.

Key Characteristics:

1. Customer-Centric Approach:

   • Focuses on understanding and meeting customer needs and expectations.

   • Uses personalized communication and tailored solutions.

2. Long-Term Engagement:

   • Aims to build trust and loyalty over time.

   • Involves ongoing interactions through social media, email, and events.

3. Value Provision:

   • Offers valuable content, resources, and exceptional support.

   • Ensures customers feel appreciated and understood.

4. Emotional Connection:

   • Creates a sense of community and belonging.

   • Develops a brand that resonates emotionally with customers.

Why I Concentrate on Relationship-First Business

1. Sustainable Growth:

   • Building long-term loyalty leads to sustainable growth. Loyal customers are more likely to make repeat purchases and recommend the brand to others.

2. Enhanced Customer Retention:

   • Focusing on strong relationships improves customer retention. A loyal customer base means less need to constantly find new customers, which saves on marketing costs.

3. Positive Brand Image:

   • Investing in relationships builds a positive brand image. Customers who feel valued share their positive experiences, enhancing the brand's reputation and attracting new customers.

4. Increased Lifetime Value:

   • Customers who feel nurtured tend to have a higher lifetime value, meaning they spend more money over time compared to one-time buyers.

Drawbacks of Sales-First Business

1. Short-Term Focus:

   • Sales-first business focuses on quick sales, often ignoring long-term relationships. This can lead to high customer turnover and the need to constantly find new customers.

2. Lower Customer Loyalty:

   • Aggressive sales tactics can drive customers away. Without strong relationships, customers are more likely to switch to competitors for better deals.

3. Potential Brand Fatigue:

   • Frequent promotions and high-pressure sales can exhaust customers and damage the brand's reputation. Customers may see the brand as pushy and insincere, hurting long-term trust.

While sales-first business can quickly boost revenue, relationship-first business is better for long-term business success. By focusing on customer relationships, businesses can achieve sustainable growth, improve customer loyalty, and build a positive brand image.