As the name implies, relationship marketing aims to create a more vital interaction between the company and customer, establishing a bond beyond purchases and sales. But, like any relationship, it needs to be built, maintained, and nurtured.
Therefore, the investment of time and resources may be more significant, but the return is also higher. The theory dates back to the 1980s, with American professor Leonard L. Berry coining the term.
After extensive research, Berry explained at a conference that the goal of a company’s marketing was to acquire new customers and keep old ones.
So much so that any grandmother can say that she always heard that a “happy customer is the one who returns” when she was still young. Long before any Silicon Valley genius, including. An impressive piece of data that ties the idea together: the consultancy Bain & Company has estimated that a 5% increase in customer retention and loyalty can represent 25% to 95% growth in sales.
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In Other Words, Loyalty Is The Holy Grail.
And because it requires a more significant effort, involvement within a company also has to target more departments, including public relations. The company’s image and how it relates to the world are vital to establishing a plan and using relationship marketing best.
It also involves the brand idea and how it wants to be perceived by the market. For all these reasons, relationship marketing is an excellent form of positioning.
How Important Is Relationship Marketing?
It’s not wise to go for new customers and ignore the ones you already have. In addition to keeping those who trusted your product at least once, they must be delighted with your offer.
Thus, you can not only come back more often and buy more but also be a source of new recipes, with recommendations and referrals to friends and acquaintances. This is what American Express concluded , which, based on research, observed that long-term customers spend more on each purchase and buy more frequently than customers who have just discovered a brand.
No wonder one of the most used relationships marketing strategies is rewarding those who refer a friend with a discount coupon.
What Is Relationship Marketing
Today, the customer can win over in many different ways. For example, they are opening the Instagram feed or receiving an email with unmissable offers.
Therefore, customers who have already “hooked” need to work hard to keep them and cultivate a relationship since offers and promotions are everywhere.
But a high-quality product and the attention given after purchase cannot be easily dismissed. On these occasions, personalized emails, targeted offers, stylized tickets along with the product, the use of the personal name and many other strategies for conversion appear – which we will discuss below.
Digital marketing is yet another important weapon used to create these closer relationships. Another factor that also weighs: because of internet access and the Information Age, terrible news travels worldwide in minutes.
Platforms such as Reclame Aqui and the social networks themselves receive criticism from dissatisfied customers at all times. Those who offer poor quality service, and even worse, “complete” with lousy service, will hardly get through this unscathed.
Also Read: Sunbelt Marketing Full Guide
What Is Relationship Marketing CRM?
CRM is an acronym for Customer Relationship Management or Customer Relationship Management. For large companies, it isn’t easy to establish a relationship with customers in a personalized and close way since we are talking about a universe of thousands or even millions of people.
Therefore, technology arrives to help with tools and programs, creating CRM systems.They allow you to organize customer and potential customer data to propose personalized actions to increase the relationship at each stage of your purchase journey with the company.
It is not by chance that the market for software that focuses on CRM is already an industry of respect in its own right. Companies in the industry can add up to 80 billion dollars in revenue in a forecast for the year 2025. In 2017, the value was US$ 35 billion.
Among the most famous software to manage the data acquired and transferred by the clients are:
- Salesforce Essentials
- Sugar CRM
- Dynamics (Microsoft)
- HubSpot CRM
- fresh sales
- Zoho CRM.
Gartner’s magic quadrant (image above) is an excellent tool to find out which software will recommend the American consulting company. For reference, the leader’s quadrant brings the software that occupies a prominent position. Finally, visionaries are the ones that get new features but may be lacking in more day-to-day tools.
The niche players are the most suitable if you need something more specific and not a tool that does everything, while the challengers are the ones that aim to conquer the market but still don’t compete with the leaders.
Also Read: 6 Foolproof Tips For Promoting Your Business
Relationship Marketing And Big Data: Is There A Date?
The answer is yes
Collecting customer data and interpreting it involves analyzing Big Data –here, we are talking about perhaps the most extensive application of Big Data in marketing.
This work will do for a long time, verifying data on a purchase make in e-commerce. But it covers many quality information: preferences, purchase attendance – whether the purchase is related to dates or is constant -taste for brands, level of spending, and other data.
It is up to a Big Data analyst to organize all this volume of data and interpret it, creating models and strategies that increase engagement and, consequently, revenue. After all, a powerful source of information supports actions in relationship marketing.
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