Why Relationship Marketing is Better than Demand Generation Marketing
As technology changes, so do the ways goods and services are marketed to consumers. The goal of any marketing strategy is to generate sales and revenue. Where demand generation marketing and relationship marketing differ is in implementation and long-term strategy. This guide will help you identify the features of both strategies and the role of products, services and consumers for each.
What is demand generation marketing?
When considering your overall marketing strategy, demand generation marketing only takes up a small space on a company’s budget. This solution generates quick returns because it focuses on short-term goals, such as gaining new consumers and individual sales. This marketing practice is solely focused on creating a demand for your company’s products and services.
This is done by moving leads through the buyer journey. Any activity that creates awareness of your products contributes to demand generation marketing. This is accomplished by featuring your products and services in content such as white papers, blogs, radio spots, promotions, emails and advertisements. Each touchpoint is a new opportunity to gain a lead. The downside to this approach is that it only focuses on the now, whereas long-term commitment guarantees higher profits over time.
Relationship marketing and demand generation
While demand generation marketing brings in new leads, the goal of relationship marketing is consumer retention. Like demand generation, relationship marketing leverages multiple channels to guarantee a steady source of consumers. This is done by fostering a consumer-first approach to business—which eventually leads to revenue through consumer loyalty and long-term commitment—and using an omnichannel engagement platform to better understand consumer context.
Rather than focusing on a single transaction, relationship marketing is a personal strategy that changes along with consumer habits. With this marketing strategy, it’s possible for consumer behavior to change the dynamic of products and services — rather than the other way around with demand generation marketing.
Many businesses use data-driven solutions to collect, track, and analyze information about a consumer’s residence, gender, hobbies, buying habits and personal preferences. This information is then used to foster a personal relationship between the brand and the consumer through segmented marketing.
For example: Email marketing campaigns that utilize subscription features give the option to sign-up for product information, white pages and newsletters that track the status of a company. At the same time, it may provide links for sharing on social media sites, mobile apps, and more that expand their experience and promote growth in the company.
Consumers that are offered personalized messages, deals, and services that are geared toward their spending habits, rather than focusing on random new products are more likely to continue doing business with the company.
Contextual data needed in a demand generation strategy
For any demand generation strategy, marketers need to create a data-driven, personalized strategy. Data, quantitative analysis, and A/B testing become essential components. Once you have a firmer grasp on consumers' buying behaviors and needs, you can implement marketing programs based on these enhanced levels of personalization.
A successful demand gen strategy is directly linked to relationship marketing and the ability to connect with target consumers.
Look to Selligent for relationship marketing solutions that promote growth
When you need technology-driven solutions on your side, look to Selligent. Our multi-channel Consumer-First Marketing solutions help you meet marketing goals and objectives head-on for today and in the future.
How do we do this?
We optimize and measure every interaction with analytic dashboards and responsive design tools that help you meet consumer expectations every time. Multi-variate and A/B testing tools help you find which campaigns your consumers respond to the best. Real-time reporting helps keep your campaign focused and on-target with integrity and empathy. Find the features that work for your customer retention marketing strategy.
Retain your customers, enhance your organization, and drive your ROI during every new marketing campaign. Let Selligent help you create personalized marketing solutions. Contact us today to learn more.