Relationship marketing is a marketing strategy that’s starting to make waves today. Basically, relationship marketing is the building of strong and lasting relationships with your customers or other business partners. It is built on fostering relationships with the client you already have. It is not looking for new customers. Research showed that the maintenance of old customers would cost you only 10% of getting a new one. Aside from this, it has also been proven that a 5% improvement in customer retention is accountable for 85% of profit. Because of this, it would make sense to focus on fostering our relationship with your existing customers. If you have an adequate number of existing customers, you won’t need to get new ones.
How Does Relationship Marketing Work
In relationship marketing, you combine marketing, sales, communication and customer care techniques. A combination of these strategies will not only develop relationships. You also increase its life period. Once the customer realizes that they are well taken care of, they are more likely to appreciate and value the relationship.
This type of marketing is very useful when there are a lot of businesses offering the same products or services to the market. The decision falls to the customers. Therefore, you would have to impress them. Offer them a better service or you can take better care of their needs. They are more likely to purchase from you. They will do so even if there is a slight price difference. By doing this, you are keeping your customers satisfied.
You have to earn their trust. So that they are sure to keep coming back to you. In addition to this, they might start buying in bulk or other supplementary goods. Through this, you are able to maintain your unit sales volume. You also increase your dollar-sales volume. By keeping your customers satisfied, they can be your living advertisement. They can recommend your business to others. Thus, they bring you new customers.
These new customers and existing ones are divided in groups. They are put on a relationship ladder based on their loyalty. It’s in an ascending order. Prospects, customers, clients, supporters, advocate and then partners. Today, they can now be monitored thanks to the advancement in technology. There are software that can help you when it comes to relationship marketing. This can help benefit you and your customers.
By catering to the individual needs of your customers, you can retain them. Investing on building relationships can keep your business alive. Existing can sustain your business and lead it to success. You can help your business succeed, with relationship marketing.