The focus of efforts in relationship marketing is always the customers and their needs and not the sale of the company’s products. Customers’ needs, their priorities, etc., drive the strategies for relationship marketing. While forming any strategy for relationship marketing, the following factors should be kept in mind:
Building trust (gaining customers’ trust) is of the utmost importance.
A company should listen carefully to the demands of the customers.
Showing legitimate concerns for the issues faced by the customers.
Providing excellent support and service whenever it is being called for.
Preference is given to retain the customers instead of getting new customers.
Receive feedback from the customers regularly about the products and services of the company.
Always being there for the customers when they need the company.
Rewarding customers for their loyalty by way of appreciation, discount, gift, etc.
These are some of the strategies which should be kept in mind while making any plans for relationship marketing. Relationship marketing starts with the first sale by the company to its customers. It progresses slowly by way of getting feedback, giving support, and after-sale services. It can go to a level where the company works in collaboration with the customers to develop customized products for them.
Advantages of Relationship Marketing
Following are some of the advantages of relationship marketing:
Customer Retention â€“ Main advantage of relationship marketing is that it aims to retain customers long-term. Customers would generally become repeat purchasers, and the company will also have the opportunity for cross-selling and upselling.
Customers Would Become Salesmen â€“ Satisfied customers are the company’s salesmen who would spread a good word for the company and advise others to buy from the company. Word of mouth publicity is very effective, especially in the times of social media, and relationship marketing can help the company make the customers fan of their products and services.
Making Connections â€“ When the company regularly interacts with its customers to get their feedback, listen to their problems, etc., it would be making a personal connection with its customers. These personal connections would help the company in increasing the sales as well as brand value of the company.
Improvement in Profitability â€“ Relationship marketing would result in customers ordering regularly and spending more by purchasing the company’s products without additional marketing efforts from the company’s side. This will result in an increase in sales as well as the profitability of the company.
Disadvantages of Relationship Marketing
Following are some of the disadvantages of relationship marketing:
Risk of Negative Feedback â€“ Feedback from customers and word-of-mouth publicity are the advantages of relationship marketing. But if the customer is not satisfied with the company’s product or service, this would become a problem for the company as that customer would share their bad experience with others, say on social media. It could severely impact the image of the company.
Less Priority to Acquisition of New Customers â€“ Relationship marketing is aimed at retaining customers and not acquiring customers; thus, companies often do not give enough importance to acquiring new customers while implementing relationship marketing. Companies cannot grow if they do not give attention to the acquisition of new customers.
Time-Consuming â€“ Relationship marketing is a lengthy and time-consuming process, and unlike traditional marketing, it does not give instant or fast results. This is a long-term process and takes considerable time.
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