Everything You Should Know About Relationship Marketing
Relationship marketing is a crucial part of CRM (customer relationship management). It encourages you as a business to focus on the loyalty of your customers and to look at long-term relationships.
And the benefits of these relationships to your business and also to your customers rather than looking at short-term things such as individual sales.
If it is done right, it will start to build really strong connections between yourself and your customers. It will also increase the strength of your brand and will also start to grow your following.
It is direct competition strategy-wise to the traditional method of transactional marketing, which is where you aim to secure individual sales and to grow the number of individual sales that your business is securing.
The reason this traditional method has grown out of favour is that the cost of customer acquisition isn't always ideal and can sometimes be commercially unviable.
Relationship marketing helps increase retention
Relationship marketing however helps you to retain customers and so will cut down the cost of having to acquire new customers. By securing and keeping existing customers. It is however difficult to see the long term benefits as a business owner.
When you are spending time keeping in contact with your loyal customers but maybe not seeing consistent sales. Sometimes making you question if what you are doing is worth it.
One of the benefits of increasing and strengthening brand loyalty is that those that are loyal to your brand and to your business.
This will spread through word of mouth about their positive experiences with either your brand, your products and/or your services. Word of mouth is still one of the most powerful methods of marketing.
The benefits of relationship marketing
- Reduce the amount you are spending on advertising and marketing. Whereas if you are retaining a lot of your customers and they keep coming back. And generating sales means you don't have to spend as much acquiring new customers.
- You increase the customer lifetime value or CLV. Building strong relationships with your customers creates loyalty which then leads to repeat sales and an overall higher CLV. And of course, it increases the chances of your customers referring to your products and/or services. Therefore also getting you new customers without having to pay the acquisition cost.
- Strengthen your organisational alignment. The more time and effort you focus on building and growing customer relationships, the more you change the customer perception.
So how can you implement relationship marketing into your business?
Well, first you need to plan a strategy. The best way to implement this method of marketing can vary depending on the nature and size of your business.
One of the most effective ways though is to be very customer-centric. Focus hugely on the customer experience journey. The more impressed by the customer experience they are given the more likely they are to remain loyal to your brand.
Show your appreciation to your customers
Another way is to show and demonstrate how appreciative you are of your customer. Thank them for their custom and follow up from purchase to see if they are happy with what they have been sold.
Or even provide them with a voucher that might encourage them to shop with you again as a token of thanks.
All in all, relationship marketing is a very effective way of growing sales within your business and growing your brand.
Building customer loyalty will bring down the cost of acquisition and will also build and grow your customer retention. There are many benefits to this form of marketing if it is implemented into your business in the right way.
And today we have covered some of the best ways to implement this style of marketing into your own business.
If you want to know more about how marketing can help grow sales within your business why not get in touch.
I work with business owners like yourself from around the country to help understand how they can start growing their sales. Through many different ways and understanding their customer base and tailoring their marketing to their needs.