Consumer/Customer Relations

Public relations and consumer relations share many commonalities. In fact, some may argue that these two functions are “first cousins” because they both seek not only to develop relationships between organizations and their key stakeholders—but also to maintain and strengthen such relationships. To observe how this era of concern for relationship management has escalated, one needs only to channel-surf via the radio or television or to skim the headlines of magazine and newspapers advertisements.

Everywhere, people are blasting out “relationship” cries of some kind. Banks, credit card companies, hotels, hospitals, automobile dealers, and the like promise that they are committed to offering “the right relationship” for you. Or type in “customer service” or “relationship management” as key words for an online Internet search; the hit count results are overwhelming.

The heightened concern for consumers can be traced to the early 1960s, when President John F. Kennedy mandated four bills of rights: the right to safety, the right to be informed, the right to choose, and the right to be heard. According to Robert J. Lampman (1988), two more have since been added: the right to enjoy a clean and healthful environment and the right of poor and other minorities to have their interests protected. Subsequent presidents have also joined forces to encourage Congress to institute policies that serve to safeguard consumers. During his 1962 congressional speech in which he declared the Consumer Bill of Rights, President Kennedy explained the important role consumers (publics) play in our society: “Consumers, by definition, includes all of us. They are the largest economic group in the economy, affecting and affected by almost every public and private economic decision. But they are the only group whose views are often not heard.”

This era of consumerism has escalated throughout the years to more than just a plea from consumers to be treated fairly and ethically by corporate America. Today, consumers seek more interpersonal communication among the organizations [Page 187]they patronize. In tandem, organizations have a better understanding of the tremendous financial benefits they can potentially reap by maintaining relationships with the publics they serve. Market research consistently demonstrates that consumers no longer want to be treated as part of the “masses.” They desire individualized, personalized service in combination with individualized, personalized information. And, if they aren't pleased with the product or service the organization provides, they are empowered to “move on.”

But what is the value of a loyal consumer? That question can be answered in a variety of ways and addressed from an array of perspectives. In the business world, success is measured in dollars, one way or another. From a quantifiable standpoint, the value of a faithful consumer equates to repeat business—business that is much more cost effective to capture compared with the costs associated with generating new business.

Let's look at an example. In the lodging industry, nearly 55 percent of the business is represented by repeat customers. This means that more than half of the hotel industry's client base revolves around the “maintenance” component. Without the implementation of strategic public relations strategies and tactics to safeguard relationships among its client base, this industry risks falling below the profitability level.

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