Relationship Marketing Definition
This is a type of marketing whereby a customer’s loyalty is sought through building and maintaining long lasting relations for continued engagement with the company’s products or services.
Relationship marketing as a strategy seeks to establish and maintain customer loyalty. Emphasis is on customer retention therefore resulting in the storage of a customer’s detailed information such as transaction history, customer profile and contact details.
Relationship Marketing Strategies
Communication as a relationship strategy is concerned with the frequencies at which a business communicates with its customers and the content of these messages. The frequency at which a business communicates with its customers is dependent on many factors including the type of product of service they offer.
A business communicates with its customers through email, phone, face to face and direct email. The message content needs to be addressed to include useful information.
Enhancement of a business’s customer service is a relationship strategy that could be used to give a company a competitive edge over its competitors. Customers have been known to make buying choices based on their experience with the company. Good customer service contributes to increased sales as it brings about repeat business.
Incorporation of a multicultural element within the organization’s marketing program. This could be translation of a company’s website into a local dialect or using an ethnic approach to reach the intended market. This has the benefit of building the desired lasting relationship.
Principles Of Relationship Marketing
The identification of prospects is perhaps the single most important determinant to the success of a marketing campaign. While developing a relationship marketing strategy, it’s important to identify potential customers using certain variables like demographic, behavioral attributes and geographic among others.
The smaller a market segment the more specific it is to tailor specific marketing needs targeted to such a group.
Building product awareness, increased awareness to a product will more likely lead to it being purchased. Customers who are aware of a product are more inclined to give out information pertaining themselves; it’s this information that forms the basis of relationship marketing.
Continued gathering of a customer’s information is necessary to amend and update the existing information.
Impact Of Relationship Marketing
Relationship marketing has impacted businesses by establishing different levels of customer engagement structures that reward customers differently. Customer recognition is tied to a hierarchy system that encourages establishment of lasting relationships between the customer and the business.
Relationship marketing has brought about differentiation of a company’s product and services from its competitors. The establishment of these relationships gives companies tremendous insight on their target market preferences and behavioral attributes.
Making companies better serve their customers who differentiate and prefer its products over a competitor’s.
Relationship Marketing Benefits
Relationship marketing core’s function is to enable a business enjoy the benefits of long term customer interaction. These benefits include increased sales and market share, customers who are willing to pay more, makes customers feel important, customers are not pressured to make an enquiry, improved customer service and company reputation.