Importance of Relationship Marketing

Relationship marketing is an important factor of effective customer relationship management (CRM), which cultivates long-term customer engagement. Businesses foster customer loyalty instead of just focusing on short-term goals, such as singular sales or customer procurement. This marketing strategy seeks to develop solid relationships with customers by giving them direct information that caters to their specific interests and needs. During this process, open communication is actively encouraged.

The Importance of Relationship Marketing

It is six to seven times more expensive to take on a new customer than to keep an existing one, and 86% of those customers will pay more for a more enriched experience. This research shows how important it is to pay attention to what customers want. The right 1-to-1 relationship marketing approach for a business can open up a world of possibilities as it drives profitability and productivity.

Value Added to Customers and Businesses

When a business implements an effective relationship marketing strategy, it becomes more profitable—since the focus shifts from constantly trying to acquire new customers to understanding more about the behaviors, wants, and needs of existing customers.

With 1-to-1 relationship marketing, the company focuses on cultivating a symbiotic relationship with established customers, effectively building a foundation of reciprocal trust so customers can feel a personal connection to the company brand.

Some mutual benefits of relationship marketing for companies and their customers include the following:

  • Feedback: Customers benefit from the opportunity to add value to the company culture by offering opinions on their experiences, as well as any complaints or suggestions they have. Savvy marketing professionals will utilize this information as an invaluable resource to make the customer experience better by addressing these concerns and suggestions. Immediate solutions to a negative customer experience can improve the customer’s satisfaction level and cultivate a relationship of trust with the company.
  • Promotion: Satisfied customers become effective promoters who share experiences with individuals in their circle of influence. This organically shared promotion can create new customers for the company.
  • Offers: Companies that create complementary offers for their customers further cement their relationship with these individuals. 
  • Inner Circle: Companies that invite their customers to become part of the inner circle of their company culture create positive, long-standing relationships with them. These companies know that by giving their customers a chance to innovate with them—by offering creative ideas for products, services, and customer benefits—they’ll build a solid relationship, and customers will feel like an invaluable resource to the company. 

Selligent Marketing Cloud

When you adopt a 1-to-1 marketing approach, you're able to easily maximize cross-selling or upselling opportunities. To understand customers or potential customers on a personal level, look for an omnichannel engagement platform like Selligent Marketing Cloud. 

Selligent Marketing Cloud provides marketers across many industries with the following benefits: 

  • Customizable dashboards for online viewing and scheduled automated distribution
  • Individual-level reporting that is aggregated per channel and per day with the ability to capture information at a detailed interaction level
  • An interactive, insightful dashboard offering a 360-degree view of your customers

Contact us for more information on how to implement effective relationship marketing today.  

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