Relationship Marketing: An Overview
Relationship marketing is a set of activities that are centered on developing, managing, and maintaining, long-term, trustworthy relationships with customers. In the domain of relationship marketing, a sales database containing the customer’s profile, contact history, and buying patterns is recorded. A person (account executive) is assigned to a caseload of customers to manage and maintain a relationship with that customer.
The goal of relationship marketing is to form a long lasting relationship with the customer instead of a one-time purchase or sale. A customer is more likely to make repeated purchase from a company if they receive exemplary services and or products. The account executive who is assigned to that customer tries to preserve their loyalty by continuing to provide outstanding services or products.
How does it differ from advertising?
Traditional advertising practices focus on just one transaction: watch A and purchase B. On the other hand, relationship marketing is not connected to a single offer or product. It involves reevaluating how a company does business in order to give the customer the most value for their loyalty.
Common Practices in Relationship Marketing
Some common practices in relationship marketing include:
- Conducting regular surveys and polls to obtain feedback from buyers
- Give that feedback consideration and try to incorporate some of it into the business’s practices
- Use social media techniques to form connections with customers
- Utilize effective monitoring technologies
- Implement clear policies and procedures for employee conduct in terms of how to interact with clients in both negative and positive situations
- Use customers who are interested in your product or service as leverage
- Utilize a comprehensive CRM strategy
- Conduct regular training sessions with all staff members
- Stay on top of product offers
- Maintain a balance between innovativeness and quality
- Try to maintain a high rate of satisfaction amongst your customers in all the different areas of the company
- Express appreciation to customers
Role of Internet
The Internet has helped companies store, analyze, track, and use large amounts of statistics about customers. As a result, customers are often presented with deals, expedited service, and personalized ads as a way of showing appreciation for their commitment to the company.
Social media websites provide a platform for businesses to interact with their customer in an informal albeit ongoing manner. Previously, keeping records for every single customer would be impossible but technology and the Internet has made marketing automation much simpler.
Branding is a final yet integral part of relationship marketing. Companies are able to form long-term relationships with their customers if the customer feels that the brand is a reflection of who they are.
Famous example of relationship marketing
This company is the maker of an ADHD drug. They created an online portal that includes vides, expert articles, mobile apps, and forums for people living with ADHD. Instead of just focusing on the product, the company created a platform for users to connect and share knowledge.