Relationship marketing is a marketing strategy that comes under the area of Customer Relationship Management – CRM. It also focuses on customer retention, customer satisfaction, and customer value for a lifetime. It is a way to create more meaningful and purposeful relations with customers so that long-term relations are maintained. Several companies focus on relationship marketing so that they can get loyal customers, great customer service, valuable communication with customers, and manage different accounts for key customers.
Relationship marketing focuses on improving customer lifetime value and giving information directly to their interests and needs. The four Ps of relationship marketing include the product, price, place, and promotion. A relationship marketing example is given below. A company hired a sales team so that it can improve its sales and get more revenue. However, when the survey was done on customer satisfaction, it was found that the sales improved only through new customers and the regular customers were not coming back to the company for more and repeated purchases.
When the company’s director looked into the matter, he studied other top companies that were enjoying loyal customer bases. He found that there was a separate relationship marketing team for every company that got higher revenue through its loyal customers. So, he decided to set up a new team of marketing specialists who would contact each existing customer and find out what are their problems with the products and services offered by the company.
When the customer feedback was received, the company decided to launch a set of new products and services as an additional gift to the existing products, thus improving customer satisfaction. Customers were sent hampers for participating in different contests that were run by the company during festive occasions. Also, in order to retain the top customers, they were awarded gift vouchers, and also their names and details were published in the monthly newsletter of the company.
Thus, the company in a span of six months was able to retain its old customers and also gain a new fan base on social media platforms to have engaging customers. This shows the importance of relationship marketing in improving the company’s goodwill, reputation, and standing in the market. One needs to have different ideas to ensure that customers are heard and not left out as the company grows by leaps and bounds.
Relationship marketing cannot be taught or even standardized. Because every strategy that a company adopts to keep its customers and clients engaged are unique and works best only for the company. Thus, a team of experts has to come into the picture and study the market size, market requirements, and needs and develop solutions that can be used for enhancing the customer experience.
Lifelong customers play a key role in maintaining good relations with companies. One not only maximizes his profits but also develops but also provides information directly fitted to their needs and interests. Higher concern for quality and frequent customer contact are some of the ways of relationship marketing in the modern age.