Customer is theking, you must have heard this term several times and it's true as well. If youwant to build a successful business then you should focus on your customer'sneed and top brands have always done that. Now, many organizations andcompanies are putting customers in the middle of their marketing strategies andbuilding a relationship with their customers instead of just selling themstuff. Below is given a brief about what is relationship marketing and how youcan use it to build a successful company.
Whatis Relationship Marketing?
Relationshipmarketing is a technique which is based on the relationship with clients andloyalty of your customers. Companies use their customer data and feedback tobuild a marketing strategy to develop a long term relationship and superfocused brand awareness.
In earlier times,companies use transactional marketing in which their main focus was to increasetheir sale numbers but now companies are adopting relationship marketing inwhich their major focus is to build a strong emotional connection with theircustomers to promote customer loyalty and increase customer lifetime value.
Benefitsof Relationship Marketing
Brian Chesky theCo-Founder of Airbnb quoted that "Build something 100 people love, notsomething 1 million people kind of like."
While implementingrelationship marketing, companies should utilize their customer's data and findmore customers that will add value to the company. By focusing on customerrelationship, companies can reduce their cost and save time as well, it alsohelps them to make better decisions about the customers having underdevelopedpotential.
One majoradvantage of using relationship marketing is that it enhances customer satisfactionin terms of services and communication. Customers having a healthy relationshipwith companies communicate with them more often which allow organizations tolearn about their customers. They believe that it is better to build a strongconnection with existing customer instead of spending too much on newones. More benefits of usingrelationship marketing are:
Delivering a consistent customer experience – By working onbuilding relationships with their customers, companies align their goals tomeet customers need, enhance satisfaction and deliver an amazing experience.
Gathering customer feedback – Customer's feedback is themost important thing in relationship marketing because it is the base ofbuilding a strong connection. Companies gather customer's feedback to analyzeand make better business decisions.
Improving customer profitability – One major shiftfrom the last decade is that customers now give priority to their experienceover the cost before making a purchase. So the customers are more loyal tobrands who give them exceptional service and experience.
Creating customer advocates – Having a great customerrelationship helps brands to build more and more customer advocates. A happycustomer will always spread the word about your company to others. Mouthpublicity is always a great way to market your product and services.
Strategiesin Relationship Marketing Includes
Show value to your customer with every interaction – Always make yourcustomer feel special as they are going to give you business. Delight them inunexpected ways.
Listen and reply to your customers – Social media isthe best tool to connect with your customers. It also allows you to identifycustomers need and address their concerns.
Educate your customers – Before selling any productor service to any customer, always educate them with full information. You canuse a blog, bullet points or a video to inform them about your product orservices. Also, share news regarding the industry and keep them updated.
Loyalty rewards – The best way to appreciateyour loyal customers is to reward them. Give them something that adds value totheir life and this will make them your long term customers.
Always communicate – to build a relationship, oneneed to communicate frequently. So make sure you are available when anycustomer needs you and provide value with that communication instead ofbecoming intrusive or too frequent. Use social media, e-mails, and messages tocommunicate with your audience.
Disadvantagesof Relationship Marketing
New customers are secondpriority – Business is not all about existing customers, sometimes you need newclients to meet your budget. In relationship marketing, the main focus is onthe existing customers so this might make new customers feel that they arebeing overlooked or ignored.
Negative information can ruinyour campaign – With the introduction of social media, customers have the powerto say positive as well as negative about anything. One negative comment canruin your marketing campaign. Most of the customers are focused on short-termbenefits instead of long term value and when they don't get it they are readyto switch to your competition.
It takes time to build arelationship – Building any relationship takes time and many customers feelthat they should be treated specially from the brand they have been using foryears. Customers want direct answers to their queries instead of findingsolution on their own and provide special offers to them.