Relationship marketing is the kind of marketing approach that is primarily developed from direct response marketing campaigns that emphasizes customer satisfaction and retention. As a practice, this differs from other kind of marketing approaches since it recognises long term value of a relationship to their customer. It even extends communication beyond intrusive sales promotional messages and intrusive advertising.
In this kind of marketing approach, more products are being customised based on the preferences of the customer in mind.
In this sense, the company could set a price based on their relationship with that customer. Direct marketing is also favored thus decreasing the role of middle men in your business, for example sales people and to a point account managers. There is also individual communication and a more personal dialogue happening between the customer and the business owners.
For any business or company that is practicing relationship marketing, it is a must for them to practice important activities that is related to this kind of marketing approach and that includes the following:
- Emphasis on customers, products, services and business partners
- Put more focus on customer growth and retention and not only more about the acquisition of customers
- Cultivate more cross functional teams that are considered to be multitalented within the business organisation
- Learning and listening to the feedback of the customers in order to keep up to date and respond to their needs as and when they happen
- Be willing to adapt to the changing needs of your customers if appropriate for the business
With relationship marketing, you are not just given the chance to obtain a successful and profitable business but you are also given an opportunity to strengthen your relationship with your customers, potential and current.
10 perks of the Relationship Marketing Approach
There are several benefits that relationship marketing offers and these are as follows:
- Happy customers who always get in touch with your business products and services will become your loyal customers
- Loyal customers can become your repeat customers
- Loyal customers show their interest to try the new products and services your business is offering
- Your business or company will be viewed as a valuable partner instead of a cost. This is just a manifestation of your business potential with increased revenue
- Reduction in marketing expenses. It is more affordable to retain potential customers rather than attracting new one. This is where coffee and cake fits in!
- Increased referrals from the clients. Priceless and effective word of mouth endorsement coming from those satisfied customers can result to new business at no cost. A loyal customer will recommend your business to others thus expanding your business profitability and customer base
- Increase inventory of your business positive testimonials
- Customers getting in touch with business that makes use of relationship marketing approach will be showing their willingness to pay for the services and products you are offering despite of the price adjustments you have made. This is due to the trust and loyalty that they are showing to your business
- Loyal customers can also voice out their problems with regards to the products and services of your business towards more improvement for you and for them in the long term
- The ultimate benefit that this marketing approach offers is more on increasing the market share, sales and dominance of your business.
With relationship marketing, you are assured to obtain success and progress of your business with long lasting relationship from your loyal potential customers.