Jill Avery

A Peruvian apparel company struggles to position itself against a global brand.

A Peruvian apparel company struggles to position itself against a global brand.

Reprint: R1407E Despite the $11 billion spent on CRM software annually, many consumer companies don’t understand customer relationships at all. They aren’t aware of the variety of relationship types and don’t understand what kind their customers want. Through research in a wide variety of consumer industries, the authors have identified 29 types of relationships. For example, some customers want to be best friends with a brand; others are looking for a passionate fling; still others find themselves as ex-friends and would welcome a closer bond. To understand the current portfolio of relationships, companies must pick up on signals from multiple sources. Companies can then build a strategic mix of connections by bolstering desired relationships and shifting customers to more-valuable types. There are many issues to consider: For example, some relationship types are more profitable than others. No actions will bear fruit unless a relationship orientation pervades not just the marketing function but every