The "customer" of brokerage business is the object of broker's work and the source of brokerage business profit. The increase of customers will have the effect of gathering customers, and the reputation of customers is an important factor for the success of securities firms, so we should pay attention to establishing good customer relations.
According to the maturity of customers in brokerage business, customers can be divided into three categories (three levels), namely "current customers", "target customers" and "potential customers". The current customer is a customer who is doing business, the target customer is a customer who is in contact with and may become the next current customer, and the potential customer is a customer who may have a transaction in the future.
The types of customer relationship in brokerage business mainly include "buying and selling (supply and demand) intermediary relationship", "priority relationship", "cooperative partnership" and "strategic alliance".
(1) "Intermediary relationship between broker and customer (supply and demand)"
The relationship between brokers and customers is maintained at the intermediary level of buying and selling (supply and demand), which is the primary level of customer relationship. At this level, the customer regards the broker as an ordinary employer, which is just a fair deal between the two parties. The purpose is very simple. There is only low-level contact between brokers and customers, brokers are not well-known among customers, and the two sides rarely communicate outside the transaction, so customer information is extremely limited. The cost of maintaining the relationship and the value created by the relationship are very low. Whether the broker loses the customer or the customer loses this intermediary channel, it does not have much impact on both parties. Such a relationship can be called the primary relationship between brokers and customers. (2) the "priority relationship" between brokers and customers.
In this level of relationship, brokers have a good relationship with many key figures of customers. Both supply and demand sides can get many preferential or even exclusive opportunities, which expands the information sharing with customers. Under the same conditions, even when competitors have certain advantages, transactions will be conducted, that is, customers have a preference for brokers or intermediaries. This is the hierarchical relationship between market brokers and customers.
At this relationship level, brokers need to invest more resources to maintain customer relationships, mainly including giving preferential policies to key customers, giving priority to meeting their delivery needs and strengthening exchanges between the two sides. At this stage, the performance of relationship value is mainly limited to the elimination of contact obstacles and the reduction of transaction costs. The use of customer information by brokers is mainly manifested in the tactical level. By transferring some value to customers to achieve the purpose of long-term trading, it can be said that it is a model of tilting value to customers in exchange for long-term value, and it is an "unequal" relationship. Customers are reluctant to leave a particular broker because of preferential and friendly relations. (3) the "partnership" between brokers and customers.
When the relationship between the two parties exists between the top managers, the relationship with customers is long-term, and the two sides reach a high degree of cognitive agreement on brokerage services, the two sides enter the stage of cooperation. This is the relationship between the middle-level market broker and the customer.
At this stage, brokers deeply understand the needs of customers (especially institutions) and can actively provide services to customers, which has formed a high entry barrier for competitors. Customers regard this relationship as a vertically integrated relationship, and they acknowledge their special relationship. They are aware of the significance of brokerage services to them and have strong loyalty. In this level of relationship, value is created and shared by both parties, and both parties will pay a huge price for abandoning the relationship. In this case, the broker's use of customer information is at the strategic level. (4) the "strategic alliance relationship" between brokers and customers.
"Strategic alliance" refers to the formal or informal alliance relationship between the two parties. The short-term goals and long-term wishes of both parties are highly consistent, and both parties may have equity relations or establish joint ventures. Both sides strive for greater market share and profits through the same arrangement, and it is extremely difficult for competitors to enter this field. The competition in modern market is no longer the competition among institutions, customers and brokers, but the competition between one industrial chain system and another. After the brokerage business matures, brokers will move towards alliances. The further development is that brokers move towards strategic alliances between buyers and sellers, and even form joint-stock companies. This is the high-level relationship between market brokers and customers.
There is no difference between these four types of relationships, and not all brokers need to establish strategic alliances with customers. Only when it is of great significance to each other, the negotiation ability is not enough to completely control each other, and the transfer cost is high, it is suitable to establish a relationship of "partner" or above. For most brokers and clients, the relationship of "priority" level is enough. Because the establishment of a relationship needs resources, if the resources pay more than the benefits, then this relationship is "extravagant" and inappropriate.