Relationship marketing is a form of marketing that emphasizes customer retention and satisfaction, rather than a focus on sales transactions. It is an arrangement where both the buyer and seller have an interest in providing a more satisfying exchange. Using this process, businesses aim at making a comfort zone with a client that doesn’t aim at one-off sales. This, in turn, provides them a number of benefits:
Helps retain customers:
When you stay in touch with your customers even after the sale has been done, you actually motivate consumers to use the full complement of product and service offerings. Taking care of your customers post-sale by keeping them updated with your latest products or services etc. makes them feel valued. Thus, relationship marketing, in a way, helps in customer retention by building strong customer relationships.
Provides valuable feedback and reviews:
When the customers feel valued, they tend to share their opinions more often. Relationship marketing instills a sense of trust within your customers which further encourages them to tell you about opportunities they see for improving your products or services. You can leverage this valuable feedback so as to benefit your business. You can identify the weak areas and make the necessary improvements in your products and services. Also, when your customers trust you and your products, they provide positive reviews that are very precious to your business.
Boosts sales and profits:
Through relationship marketing, you provide value to the customers. This makes them buy an upcoming product, thus, boosting your sales. Having more sales means that you have loyal, who pay you the price you deserve, thus, boosting your profits.
Lowers your marketing expenses:
In today’s era, “Word-of-mouth” is the most powerful marketing tool. When you value your customers, they tend to love your brand and refer it to their friends, family, and knowns. Personal experience explained in detail is something that can be used as a solid base to make a purchase decision. Also, relationship marketing can help gain advocates who refer your brand further.