In this competitive market, it is extremely challenging to acquire new clients, and most business owners are consumed by the thought of landing new customers, that they accidently forget devoting resources to cultivate strong and long-lasting relationships with existing clients, eventually losing out on the clients which they had worked so hard to get.
Relationship marketing refers to a strategy aimed at fostering long-term customer engagement and loyalty, by relying on customised marketing and encouraging open communication. It focuses on customer satisfaction and retention.
Importance of Relationship Marketing
It is time to move beyond transactional business. Today, customers are concerned about the value that you provide outside the product/service that they paid for. Focusing merely on short-term goals like completing the sale or customer procurement, can prove to be a costly mistake in the future.
Monetary Benefits
Research indicates that finding and converting a new lead is significantly more time consuming and expensive than convincing existing clients to do repeat business. Studies also reveal that existing customers are willing to pay more for a product/service, when compared to new prospects.
Endorsement
Every customer should be considered as a medium of advertisement. Customers often share their business experience in their circle of influence. A satisfied customer will surely promote your company, and will bring in referrals.
Less Paid Advertising
You often end up spending an exorbitant amount on marketing campaigns with poor ROI. The repeat business and referrals that existing customers bring can help you reduce your marketing expenses.
More Selling
Once you have gained the trust of your clients, you can increase your sales through up-selling and cross-selling, as they will be less price-sensitive, and more interested in the post-sale experience.
Accommodating
Even the biggest business houses can make mistakes. Someday, you might too. Loyal customers are more forgiving and accommodating, and will be cooperative if you make accidental errors.
Feedback
As relationship marketing hinges on open communication, you will surely gain from the honest feedback that your customers give. You can use their suggestions and insights to serve them better, and improve your overall business.
Relationship Marketing Essentials
Relationship marketing is not just talking politely to clients, it requires persistent positive engagement. Here are some aspects that are crucial to relationship marketing:
Serve
A sale is just the beginning of your relationship. A satisfying after-sales customer service based on personalisation goes a long way in building a loyal customer base. A good product/service will help you make the sale, but only exceptional customer service can help you retain your customers.
Help
Every company wants to sell, few want to help the customer. Be a company that helps, educates, and inspires, through your service, your content, your attitude. Help customers grow, and they will reciprocate.
Solve
Today, apart from emails, customers tend to complain or give their feedback through social media. Monitor all the channels through which a customer might communicate and proactively address their concerns, and solve their problems, if any.
Reward
Give your customers an incentive to stay in touch with you, through interesting loyalty programs. It does not have to be complex and sophisticated. Keep it simple and fun.
So, invest some time and resources in relationship marketing. Do not wait, start early, as relationships are not built overnight. It will take time, but it will surely give you the best returns.
Always remember a loyal customer will buy more, and buy more often!
