Relationship Marketing is a strategy of CRM (Customer Relationship Management) that focuses on customer satisfaction, retention, customer value for a lifetime. Its basic purpose is to keep intact the new and existing customers through sales and advertising. Building customer loyalty and long-term involvement with your client base is the foundation of a solid relationship marketing approach.
Table of Contents
- Why Relationship Marketing is so important?
- Role of relationship marketing.
- Difference between relationship marketing and traditional marketing.
- Implementation of relationship marketing strategy.
- Benefits of relationship marketing.
- Relationship marketing best practices.
Increased positive word-of-mouth and a desire on the part of customers to provide useful feedback to the company and their peers are all advantages. It also emphasizes long-term relations with the customers and engagement instead of short-term goals like individual sales.
Relationship marketing is the opposite of transactional marketing where marketers focus on increasing sales numbers. In the transactional model of marketing, customer acquisition cost remains insufficient. It means that, for example, a convinced customer maybe makes a purchase from your brand for one time, but if you do not engage him strategically, he will not come back.
Therefore, a strong relationship marketing strategy is highly important to make a one-time user a permanent client. Intelligent marketers, on the other hand, use both transactional and relationship marketing combined to get the full potential and play a more important role for the companies.
Why Relationship Marketing Is So Important?
Getting new customers is not an easy task when there are many in the market selling the same product as yours. It is not only difficult rather it can be costly too. In this situation, customer relationship marketing can be a savior to retain the customers for a long time. This strategy is helpful to keep the client loyal whether he purchases frequently or once.
It is important because it has all the abilities to stay in touch and remains closer in contact with the customers. This concept is highly persuasive and useful when you keep in touch with the customers. By getting in touch, you will be able to understand your clients’ unmet needs and in this way, it will be possible to create new features.
Once the needs are met, this will strengthen the relationship between them both. In order to grow customer relationship marketing, a company can conduct conferences, seminars, and training. Further, customer-oriented company culture within the firm boosts customer relationships.
Role of Relationship Marketing
The most vivacious purpose of relationship marketing is to note what you are offering to the customers and what they need. By understanding the emotions of the clients, the right products can be provided in the market to make the customers an integral part of your brand. When a brand understands the emotions of the users, it pays back high profits which are mandatory for financial growth.
The importance of sales through relationship marketing is that it is a cost-effective way to connect with clients. The importance of relationship marketing is more significant in B2B sales because B2B businesses focus more on the relationships since they are established to run for a longer time.
Difference Between Relationship Marketing and Traditional Marketing
The major difference between relationship marketing and traditional marketing is the level of individualized communication for the clients. It means that traditional marketing consists of a larger group of people.
In this model, the marketers target a large audience with the same message. Relationship marketing on the other hand works contrarily to establish an environment of personalized conversation. These messages are sent differently to different clients at the right time.
If you want to do it rightly, we suggest you do it through marketing automation and send triggers when your customers perform a specific action.
Long-Term vs Short-Term
As hinted in the above lines that the relationship marketing model focuses on long-term relationships and benefits. On the contrary, traditional marketing is related to short-term sales. in the former, the customers attach emotionally to your brand and they get attached to you for a longer time.
On the other hand, although, it might be possible that you will make a sale through traditional marketing by addressing the majority of people without an attachment, there is no surety that these customers will come back again.
In relationship marketing, the major aim is to build trust for your products and to make the purchase cycle simple instead of complex. This is the reason smart marketers and companies focus highly on long-term relationships because they know that getting new clients is how much difficult.
Relational vs Transactional
Traditional marketing is transactional in nature. It essentially focuses to generate a purchase or transaction as swiftly as possible. Whereas, relationship marketing focuses more on relations which is why it is called relational. In this method, the marketers try to build a relationship with the customers before they sell something.
Implementation of Relationship Marketing Strategy
Relationship marketing concentrates on CEM (customer experience management). It means that it relates to customer interaction to increase brand loyalty. You can make these interactions in person, on the web, or on a phone call also. There is too much information is available on the website and on social media.
The customers have easy access to be in contact with the company and provide their input in the shaped feedback. These customers can find a chance to influence the brand’s services and products through online reviews and social media posts. Customer relationship marketing is creating two-way communication between businesses and customers.
The customers perform some activities and give their feedback that is helpful in upgradation the product as they demand. For example, an eCommerce site asks the customers to make an account for the sign-up purpose but the customer wants to sign in through Facebook or Google, this will force the company to make the user interface simple to make the site friendlier.
Benefits of Relationship Marketing
Relationship marketing is exceedingly beneficial for brands and organizations. It creates loyal customers that bring higher customer lifetime value (CLV). These users are your lifetime customers and brand ambassadors. If you are fulfilling the customer’s needs, they will advocate your brand and bring many new customers to you by recommending the product to family members, friends, and others.
As we discussed above relationship marketing is cost-effective. It means that if you do not care about your existing customers, you will have to spend a lot on the advertisement to get new customers. You might have heard about buzz marketing; it is basically relationship marketing where the customers promote your brand. Satisfied customers recommend your product to others which ultimately increases the sale.
Relationship Marketing Best Practices
As of now, you get the understanding of relationship marketing, now we shall have to look at how to do it right to get the maximum returns.
Be Friendly with the Customers
If you always treat your consumers just like customers, there will not be anything emotional. Therefore, you have to take a step forward and make your consumers feel like they are more than that. If you really want to establish a relationship between you and your customers, get an emotional attachment and be friendly with them.
Here, you need to understand the point that when to get the relationship marketing right, it is not enough to just talk to the customers in a friendly way. Rather, think the way they are your friend. This will create a synchronization in your thoughts and actions which is decidedly important for your survival.
To move one, replace your bulk email with the marketing automation workflow which is devoted to the user’s specific action. If you use Mumara, you will find it loaded with all the features to customize your email campaigns as “human-friendly”.
Segment Your Email Lists
There are many types of customers every business has. Some of them are grouped as loyal customers, qualified leads, top customers, and others may be grouped as new leads. These contacts need to be separated from each other and send customized content. For this purpose, it is important for you to create segments based on the different levels of the customers.
By sending these custom-made messages, your audience will automatically get that they are not receiving a random message but a special message designed for them. This will establish a sense of trust between you and them that will run for a longer time.
This practice will not only help in converting leads into customers, but the existing old customers will also make purchases to show their loyalty. On one hand, you will get the job done cost-effectively and on the other hand, the revenue and resources will be increased.
In your messages, you can reference their long-term attachment with your company and make them feel special by offering some offers and discount on the selected items or as per strategy.
Create Sales Funnel
Sales funnel. Also called conversion funnels or purchase funnels is the depiction of the sales process. It is a representation of the customer’s journey from awareness to action. Make your customers aware of your brand and slowly convince them to make a purchase. It will depend on your relationship with the customers which will tell at what stage they are present currently and how to move forward with them.
Sales funnel have different steps and stages and each step brings the customer closer to making a purchase. A well-planned sales funnel with perfect relationship marketing will push a prospect to the next stage.
Listen to Customer’s Feedback
Customers’ feedback is very much important in all types of businesses. You can make or mar your business performance by paying heed to the clients’ viewpoint. If you ignore it, you are gone. This is because the feedback is something like a reaction to your product from the buyers. If they are satisfied they will give attention to you and give positive feedback.
By getting positive feedback, you can keep up the good work! If a customer is not happy with your product, do not stress, just focus on the idea that how to fix the issue and make it according to the demands of the users. The Internet has made everything easy and quick, take advantage of this opportunity to solve the issue as soon as possible.
Invest in Technology That Helps in Relationship Marketing
Many marketing tools are available in the market to help you to provide the best to your audience. All you need is to choose reliable software that is more suitable to design your campaign and send it to the audience at the right time. Not only this, but it is also mandatory to keep an eye on the stats that who has opened your emails and who took some action.
From these features, it will be easy for you to get an idea that how your email campaign is being received by the customers. All this is possible through Mumara where you can create a beautiful campaign and send it to your clients with all the stats in hand. Before sending a campaign you can conduct a split test and send the best version of your campaign for the best results.
Build a Responsive Customer Service Team
Customer service is a major factor in making or breaking a business. A customer service team with all the knowledge of your brand can guide you perfectly to your product. If vice versa, it can be enough for you to lose your customers. Invest in your team and equip them with proper training which makes them eligible to deal with the customer properly.
In the end, we can say that relationship marketing is the key to enhancing your sales. If you are providing all the pertinent services but ignoring to build a relationship between you and your customer, you are on the losing side. Let us be fair that building perfect relations boosts sales to the optimum level. If you want to advance in the market with the traditional model of marketing, we assure you that it will be highly risky, difficult, and costly. If you choose intelligent marketing automation software, it will make it easy for you to send customized campaigns to your customers in a friendly way and make them feel at home.
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