If you want to pursue a marketing strategy that aims to gain deep consumer trust, you can try relationship marketing. Unlike other marketing techniques that emphasize sales, relationship marketing is a marketing strategy that emphasizes customer satisfaction to gain their trust.
In this article, you will learn in detail what is meant by relationship marketing. In addition, you will also get an explanation of the benefits of relationship marketing and direct application examples. Let’s see more below!
Understanding The Definition of Relationship Marketing
Relationship marketing is a type of marketing that is integrated with customer relationship management (CRM). Relationship marketing focuses on long-term customer engagement and retention, unlike most other marketing strategies that focus on short-term goals such as customer acquisition and one-off sales.
Relationship marketing is designed to promote customer loyalty. Unlike customer acquisition, which focuses on short-term goals and individual sales, relationship marketing aims to increase customer loyalty and provide information that directly fits their needs and interests. This includes a marketing plan that focuses on customer retention and transaction satisfaction.
By many calculations, at least 20% of your current customers will account for 80% of the company’s future sales. In addition, loyal and engaged consumers always spend more than the average consumer.
This is a natural progression in the buyer’s journey. Relationship marketing is all about maintaining customer loyalty and paying more attention to your existing customers.
6 Benefits of Implementing Relationship Marketing
Although it doesn’t focus on one-to-one sales, relationship marketing can still bring great profits to the business. Below are some of the benefits of implementing relationship marketing.
1. Cost Effective
Marketing efforts to reach new consumers and capture their attention can be very expensive. Coca-Cola, a world-renowned company, spends billions of US dollars on it every year. On the other hand, it can be very cost-effective to retain existing customers through relationship marketing.
2. Increase Customer Loyalty
Relationship marketing connects consumers more strongly with brands. This way, they feel considered and become part of the company’s development. This can make customers more loyal and engaged. In turn, these consumers will happily continue to interact with you and purchase products or services offered more frequently.
3. Increase Your Marketing ROI
Marketing ROI can be the main indicator of a company’s success. With higher customer retention rates, the cost of customer acquisition is reduced. This can give you a higher budget to build and implement the relationship marketing strategy you want to implement.
4. Increase Sales
Loyal customers will often return to make further purchases because they already appreciate the product or service you offer. If you get such consumers to engage more with the brand, the resulting engagement rate will be higher and you could continue to see increased sales.
In addition, potential consumers will see good testimonials and reviews before deciding on anything. If your existing customers always give good reviews on the products they buy, it is sure that many potential customers will not hesitate to buy the same product.
5. Increase Brand Awareness
Loyal consumers will readily share the products or services they like with others, either by word of mouth or online, such as through social media. This way, your brand awareness will continue to grow, even if you don’t put in the effort.
6. Become More Competitive
It’s difficult to find ways to stay ahead of your competitors and remain competitive. Relationship marketing can help you gain loyal customers who will stay with you, and also convince others to buy the products or services you offer. This way, you get additional free labor for marketing and remain competitive in the marketplace.
4 Ways to Implement Relationship Marketing
There are many benefits that you can experience by implementing relationship marketing. This strategy can give the company an advantage, especially in the long run. Here are some ways to implement good relationship marketing.
1. Listen to Consumer Feedback
Relationship marketing is a marketing strategy that focuses on consumers. Therefore, when implementing it, you must first listen to what consumers have to say.
Very often, consumers provide feedback on the products, services, and marketing strategy you are implementing. Well, you need to listen to the feedback and then apply it if you think that the opinion fits the company’s values.
2. Create a Consumer Centric Strategy
When developing a relationship marketing strategy and engaging with customers, your main focus should not be on your product or service. Instead, the main focus of your marketing should always be on the consumer. Try asking yourself some of the following questions:
- Do consumers want to see this ad?
- Will consumers be happy with this Instagram post?
- Will our new product excite consumers?
Aside from that, you also need to provide a customer support channel that is easy for consumers to access at any time. Try using Twitter for customer support, or open a hotline that is available 24/7. If you can’t be available 24/7, you should at least be easily accessible during business hours (usually 09:00 – 17:00).
3. Offer Gifts and Discounts to Consumers
To build long-term relationships with consumers and create brand loyalty, you need to continue to engage with consumers after they have purchased a product. Consider what you can offer them when they become consumers; perhaps they can receive discounts on additional products or receive personalized recommendations based on their preferences.
4. Create Personalized Content
If a customer has already purchased your product, they don’t need to see additional product ads to stay loyal to your brand. Instead, they need to feel that your company offers value that they can agree with, regardless of their purchase intentions. Being personal, therefore, is one of the best ways to implement relationship marketing.
You can try to identify the trends of the target audience to decide what kind of content you want to create. For example, if you have a shoe store and most of your customers are young people, you can provide up-to-date and modern content. If you focus on a niche, this will be much easier to do.