How Relationship Marketing is changing the Game
How Relationship Marketing is changing the Game
Customer is the king, you must have heard this term several times and it’s true as well. If you want to build a successful business then you should focus on your customer’s need and top brands have always done that. Now, many organizations and companies are putting customers in the middle of their marketing strategies and building a relationship with their customers instead of just selling them stuff. Below is given a brief about what is relationship marketing and how you can use it to build a successful company.
What is Relationship Marketing?
Relationship marketing is a technique which is based on the relationship with clients and loyalty of your customers. Companies use their customer data and feedback to build a marketing strategy to develop a long term relationship and super focused brand awareness.
In earlier times, companies use transactional marketing in which their main focus was to increase their sale numbers but now companies are adopting relationship marketing in which their major focus is to build a strong emotional connection with their customers to promote customer loyalty and increase customer lifetime value.
Benefits of Relationship Marketing
Brian Chesky the Co-Founder of Airbnb quoted that “Build something 100 people love, not something 1 million people kind of like.”
While implementing relationship marketing, companies should utilize their customer’s data and find more customers that will add value to the company. By focusing on customer relationship, companies can reduce their cost and save time as well, it also helps them to make better decisions about the customers having underdeveloped potential.
One major advantage of using relationship marketing is that it enhances customer satisfaction in terms of services and communication. Customers having a healthy relationship with companies communicate with them more often which allow organizations to learn about their customers. They believe that it is better to build a strong connection with existing customer instead of spending too much on new ones. More benefits of using relationship marketing are:
Delivering a consistent customer experience – By working on building relationships with their customers, companies align their goals to meet customers need, enhance satisfaction and deliver an amazing experience.
Gathering customer feedback – Customer’s feedback is the most important thing in relationship marketing because it is the base of building a strong connection. Companies gather customer’s feedback to analyze and make better business decisions.
Improving customer profitability – One major shift from the last decade is that customers now give priority to their experience over the cost before making a purchase. So the customers are more loyal to brands who give them exceptional service and experience.
Creating customer advocates – Having a great customer relationship helps brands to build more and more customer advocates. A happy customer will always spread the word about your company to others. Mouth publicity is always a great way to market your product and services.
Strategies in Relationship Marketing Includes
Show value to your customer with every interaction – Always make your customer feel special as they are going to give you business. Delight them in unexpected ways.
Listen and reply to your customers – Social media is the best tool to connect with your customers. It also allows you to identify customers need and address their concerns.
Educate your customers – Before selling any product or service to any customer, always educate them with full information. You can use a blog, bullet points or a video to inform them about your product or services. Also, share news regarding the industry and keep them updated.
Loyalty rewards – The best way to appreciate your loyal customers is to reward them. Give them something that adds value to their life and this will make them your long term customers.
Always communicate – to build a relationship, one need to communicate frequently. So make sure you are available when any customer needs you and provide value with that communication instead of becoming intrusive or too frequent. Use social media, e-mails, and messages to communicate with your audience.
Disadvantages of Relationship Marketing
New customers are second priority – Business is not all about existing customers, sometimes you need new clients to meet your budget. In relationship marketing, the main focus is on the existing customers so this might make new customers feel that they are being overlooked or ignored.
Negative information can ruin your campaign – With the introduction of social media, customers have the power to say positive as well as negative about anything. One negative comment can ruin your marketing campaign. Most of the customers are focused on short-term benefits instead of long term value and when they don’t get it they are ready to switch to your competition.
It takes time to build a relationship – Building any relationship takes time and many customers feel that they should be treated specially from the brand they have been using for years. Customers want direct answers to their queries instead of finding solution on their own and provide special offers to them.