There was a time when marketing was all and only about finding the customers and pushing forward the product to them and then leaving it upon them whether they wanted to buy it or not. The days are long behind and now, and now marketing is all about reaching out to customers and developing a relationship with them.
Relationship Marketing is not a new phenomenon; rather the businesses that have been smart know and understand the importance of developing a relationship with the customers in order to achieve long-lasting success. Compared to conventional transactional marketing, the emphasis of relationship marketing is on a word to mouth marketing and engagement and interaction with customers are the primary means of doing so.
At present relationship marketing is primarily practiced on the online social media platforms, therefore, it is imperative that instead of just being at social media platforms a business must utilize them as a means of developing a relationship with customers and lay the foundation for long-lasting success. Let me tell you a few reasons why relationship marketing matters.
In the online social media world, it is quite common that customers go and interact with different brands of the same niche that are competitors to each other. This happens because none of the brands is able to satisfy the customers and provide them with the care, which they desire. Thus, if a business focuses on relationship marketing and gives customers the care they desire and require, the ultimate result is the customer becoming loyal to the brand and not wandering to check out other brands. Moreover, the loyal customers developed in this way are less price-conscious as well, thus they are willing to pay extra for the extra care that comes with the products of the business.
The Base of Word-to-Mouth Marketing:
The other reason why relationship marketing is imperative in the present scenario is that it serves as the bases of a word to mouth marketing. In the early days, a business could spend a high sum of money on advertising and promotion using different mass communication means, however, these days, social media marketing has taken over. No matter how much the business spends on advertising, if the people on social media do not agree with the business, then all the advertising will go in vain. Therefore, a business needs to realize the importance of the word to mouth marketing and focus on keeping the social media customers and fans happy, so that they willingly spread the name of the business.
Makes Customers Loyal:
The reason why it is relationship marketing is that it focuses on going with the customers in the long run instead of conducting just a one-time business with them. Therefore, if a business invests time and energy in relationship marketing, the ultimate result is loyal customers. These loyal customers in addition to being a source of a word to mouth marketing also serve as a foundation upon which a business can base the targeting of new customers. Thus, the business can keep on generating revenue from these customers and target new ones on the bases of it.
The Cost Of Acquiring Customer Goes Down:
When it comes to conventional marketing and the cost of acquisition of new customers using conventional means, the cost is quite high compared to when a business invests in relationship marketing. If a business acquires one customer through relationship marketing, then that customer willingly markets the business and brings in more customers, thus eventually the cost of acquiring new customers goes down. Hence compared to fancy and extremely expensive ways of gaining customers, relationship marketing brings less expensive customers to the business.
Now it’s Your Turn!
What marketing methodology do you deploy to promoting your business? How do you keep the customers happy and satisfied? Do you think relationship marketing supersedes conventional marketing? Please share your insightful thoughts in the comments section.
Nate I think the way we do business is changing. Building relationships, networking outsourcing to business that can meet needs your business can not it important. I believe that partnering is key to building strong lasting relationships. Customers want to be cared for and it begins with establishing relationships. They blog
Great post! Relationship building and personalization is key to any business in today’s times.
The old ‘word of mouth’ works best of all. We revert back to village life and talk to each other.
Thanks Nate. I agree with Francene; word of mouth always helps!
Nate. Thanks for posting this. I don’t have a strategy for this. So it is something that I have to work on. Thanks for sharing your expertise
Great post Nate. My marketing strategy is being honest and sincere.
Thanks for your post. you are right, positive word of mouth is so important
Nate – Great post – it is all about relationships these days. I use networking, relationship building all of the time. Referral are one way but there are not the only way. Many of my clients come from the material I open share to build trust and expertise with my prospective client base.
Word of mouth really does trump all other forms of advertisement. It’s a major reason why MLM stay around for as long as they do (referrals as based mainly on word-of-mouth). Friends tend to believe the word of another friend, buying products based on recommendations. This is the best form of advertisement and what my club (that is part of my hobby) does to attract more and more guests each year at its annual community public event. The first time we ran this, we drew about 400 guests. The following year, we drew about 600. This year, we drew 850! A lot of people heard of us through their friends and what a great time they had in years prior.
It’s all about relationships and it’s very important!
Great post! Tons of useful tips
It seems like the internet is just catching on to the whole build relationships and word of mouth marketing. Yet it’s been around for ever. Great post.
Really important one that needs sharing,
I have always used relationship marketing, as it provides the best results. I made most of my money on a VIP program, where my customer refers his friends and family. I am glad that social media makes this easier to obtain and follow up, cheaper too! Thanks for your great article full of great info and tips! Please keep em coming!
Sound like what we always called “customer retention and loyalty.” Usually outstanding customer service will do the trick. It’s rather rare these days to find companies who really excel at customer service.
This is a great post Nate!
I have always believed in ‘relationship building’ for best customer service and customer retention – always costs a lot less to service your loyal customers than pay to find new ones 🙂
Thanks for a well presented article Nate. I’ll be sharing this!
Ah- thanks Nate for another informative post! I always feel like I’ve learnt something new!
this is how it worked in the past in communities ,
now it works in internet communities,
I had a business when there was no internet and it worked through
word to mouth ,relationship and providing value to the customers.
Relationship always matters as the starting points for every thing would matters.
I agree with your post. I think the internet at first started out and the goal was to make contact with as many people as possible but as time went on, it still all comes down to the fact that people want to interact with people and if you can’t or won’t do that, you will not succeed.
Have a great day. Monna
Everything starts with a relationship and we gonna need to maintain a good relationship the customers and also colleague marketers.
Since my focus is on building loving relationships, I totally understand the need for relationship marketing. When people know you and trust you, they are less likely to leave and search for one of your competitors. I have had clients pay more than what was asked for because they appreciated the personal and caring service I provide.
I received an email today from one of our large supermarkets offering me discounts based on items I had already purchased from them online. Even large retail outlets can no longer rely on anonymous advertising alone.
We’ve moved from pushing to attracting. What wonderful shifting, right? Make friends, form bonds, remove the pressure from marketing, and make it fun. Thanks dude!