You may have heard of this term 'relationship marketing' and disregarded it due to it being a new strategies in business. This new strategy, if implemented correctly, will put you ahead of your competitors and spike your sales dramatically.
One of the most expensive and difficult tasks facing any business is acquiring new customers. Earning a potential customer's attention, making a convincing pitch, and then facilitating the accompanying sale can leads to huge expenses when every step is considered. According to business authors Emmett C. Murphy and Mark A. Murphy, acquiring a new customer can cost five times as much as retaining an existing customer.
This presents a serious dilemma for many companies. With finite resources, is it better to attract new customers or try to hold onto the ones they already have? According to those same authors, a 2% increase in customer retention can decrease costs by as much as 10%. No company can survive and grow if they are not constantly adding to their customer base.
Conduct regular polls and surveys to solicit feedback from customers.
Respect that feedback and incorporate it into the company's business practices.
Use any and all social media outlets to connect with customers.
Have effective customer monitoring technologies in place.
Use clear policies to dictate how all company employees should interact with customers in both positive and negative situations.
Make an effort to inform customers how much they are appreciated.
Have a comprehensive customer relationship management strategy.
Conduct regular training sessions for all members of staff.
Stay on the cutting edge of product offerings.
Do not sacrifice quality for innovativeness.
Maintain a high customer satisfaction rate in all areas of the company.
Many companies separate the two functions and dedicate different areas of their marketing department to work on one or the other. New customers are considered transactional because the goal is to get them to buy, while existing customers require different strategies.
To retain current customers, businsses engage in relationship marketing strategies to continually attract repeat business. While both types of customer must be acknowledged and respected, the goal, ultimately, is to turn every new customer into a returning customer.
Relationship marketing is about forming long-term relationships with customers. Rather than trying to encourage a one-time sale, relationship marketing tries to foster customer loyalty by providing exemplary products and services. This is different than most normal advertising practices that focus on a single transaction; watch ad A and buy product B. Relationship marketing, by contrast, is usually not linked to a single product or offer. It involves a company refining the way they do business in order to maximize the value of that relationship for the customer.
Relationship marketing mainly involves the improvement of internal operations. Many customers leave a company not because they didn't like the product, but because they were frustrated with the customer service. If a business streamlines its internal operations to satisfy all service needs of their customers, customers will be happier even in the face of product problems.Technology also plays an important role in relationship marketing. The Internet has made it easier for companies to track, store, analyze and then utilize vast amounts of information about customers. Customers are offered personalized ads, special deals, and expedited service as a token of appreciation for their loyalty.
Social media sites allow business to engage their customers in an informal and ongoing way. In the past, it would have been impossible to keep useful records about every single client, but technology makes it easy for companies to automate their marketing efforts. Branding is the final component of relationship marketing. A company can form a long-term relationship with a client if that client feels like the brand they purchase reflects who they are or who they want to be. Customers are less inclined to switch to a different brand if they think that switch makes a statement about their identity.
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