Relationship Marketing in 2019: What It Is and How to Use in Your Company?

by | April 3, 2019
Relationship Marketing in 2019: What It Is and How to Use in Your Company?
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You must have already heard the term “relationship marketing” being spoken about so recently. The relationship marketing refers to everything that causes you to develop strong relationships and long-lasting with your customers.

One of the tasks more expensive and difficult faced by any company is the acquisition of new customers.

To win the attention of a potential customer, to make a speech compelling, and then make the sale can lead to huge expenses when each stage is considered.

According to the famous authors of business books Emmett C. Murphy and Mark A. Murphy, acquiring a new customer can cost five times more than retaining an existing customer.

This represents a serious dilemma for many companies. With finite resources, it is better to attract new customers or try to keep the ones you already have?

According to these same authors (Emmett C. Murphy and Mark A. Murphy), a 2% increase in customer retention can reduce costs by up to 10%. No company can survive and grow if it is not constantly increasing your customer base.

Have you ever had any positive experience with any company?

So positive to the point that you not only became a loyal customer of the company, but also happened to be a true marketer of the brand?

If you have had this experience personally, you’re sure to remember the company that I dealt with better than you expected. After all, who doesn’t like to be treated well and feel special?

Programs influencers to campaigns, affiliate marketing, relationship marketing creates brand recognition and is positioned as the best option for your customers.

What is Relationship Marketing and What does it do?

This type of marketing differs from traditional marketing by not be transactional, but relational. The old way of doing things is focused on make more sales.

The new way is better if you focus on creating a better overall experience of the brand will not only help to attract more customers, but also to retain the existing in the long term.

The change to this approach of marketing more personal has been driven by the increased demand of consumers who want to know that the brands with which we work do not offer only products or services quality, but really care about them.

People want to know that there are faces real behind your logo, that you are listening to their concerns and that is willing to go above and beyond to satisfy them only with their products or services.

Definition of Relationship Marketing with the Customer

The marketing of customer relationship management (CRM) is a technique based in the relationship with the customer and in customer loyalty. Using data and customer feedback, the companies that use this marketing strategy to develop long-term relationships with customers and develop the recognition of brand as a focus.

The marketing relationship with the client varies greatly from the marketing approach transactional traditional that focuses on the increase of the numbers of individual sales.

Companies that prioritize customer relationships, on the other hand, strive to create strong connections with customers, which can be emotional, in order to promote customer loyalty and increase the “lifetime” of the client.

These companies benefit from the marketing done by the satisfied customers through marketing, word of mouth and develop ambassadors of the brand (loyal customers and satisfied).

Top 5 Benefits Of Marketing Ralacionamento

Now that you have a better idea of exactly what relationship marketing actually is, let’s take a look at the various benefits that the development of this type of strategy can have for your company:

1. The Relationship Marketing Helps you Keep More Clients In Long-Term

A research done by the site Real Results Marketing has shown that the longer a customer stays with a brand, the more valuable it becomes. In fact, an annual increase of only 1% in customer retention can mean a 20% increase in annual revenue.

When you work to build relationships with your customers and not just sell to them, begins to develop loyalty, which means that they are more likely to remain as customers of your brand for a long period. And if you send as well, he will be your client for the whole life!

2. The Relationship Marketing Increases the Likelihood of Getting Referrals

Regardless of the dozens of different marketing techniques available today, word-of-mouth is still the most powerful. According to a research done by the site Nielsen.com, 84% of consumers citão the recommendation of a friend or family member as their most trusted source when making a purchase decision.

The more satisfied and loyal your customers are, the more likely it is that they indicate your brand to other people. The best way to achieve this is through relationship marketing.

3. The Relationship Marketing Facilitate Any Changes of Price

Many companies hate to raise their prices for fear of losing customers as a result. However, with the economy the way it is, the price increases are something that we all have to consider from time to time. A solid marketing strategy relationship can help make it easier to increase the price.

This happens because, when you have worked hard on the “front line” to develop relationships with their customers, the loyalty resulting the become less likely to look for a competitor because of a price change on your part.

4. The Relationship Marketing Creates An Excellent Opportunity To Get Feedback From Your Customers

When you have a lot of loyal customers and happy, you have a market test of life to use. Whenever you need to try a new product or propose a new service, your loyal clientele will be present to offer feedback to them.

Want to know how you are? Ask your loyal customers (long-time clients). The feedback from them can help you determine what are the strong points of your company, and identify areas that need to be improved. This feedback can be the difference to save your company in times of crisis! So values their customers! Especially your loyal customers!

5. The Marketing Relationship will Give you A Competitive Advantage Over Your Competition

The good news for you is that not everyone has jumped on the train of relationship marketing (YET). This means that there is a good chance that at least some of their competitors still are not taking advantage of this powerful tool for your own benefit.

When you offer a more personal touch to your products or services, you will be able to reach those who are still stuck in the era of marketing driven by sales. This personal relationship and special with the client is worth gold!

Retention of Clients Through Relationship Marketing

According to Buchanan and Gilles in an article written for the European Management Journal the greater profitability associated with the efforts of customer retention occurs due to several factors that occur when a relationship is established with a client:

Relationship Marketing in 2019 What It Is and How to Use in Your Company 1

  • The cost of acquisition occurs only at the beginning of a relationship, then, the greater the relationship, the lower the costs of customer acquisition;
  • The long-term clients tend to be less inclined to switch to a concorrênte, and also tend to be less price sensitive. This can result in a greater volume of sales per unit (quantity of items sold) and an increase in the volume of total sales value (gross sales);
  • Long-term clients tend to promote and make referrals to friends free of charge through the “marketing word-of-mouth”;
  • The long-term clients are more likely to buy ancillary products and complementary products of higher price and margin of your company;
  • Customers who are faithful to their company tend to be satisfied with the relationship and are less likely to switch to competitors, making it difficult the entry of competitors in the market or the achievement of a larger share of the market by its concorrêntes;
  • The regular customers tend to be less “expensive for the service (if your company is a provider of services) because they are familiar with the process of your company, require less “education” and are consistent in the placement of their requests;
  • Greater retention and customer loyalty make the employees ‘ work more easy and satisfactory. In turn, happy employees return to a better customer satisfaction in a virtuous circle.

9 Strategies and Tips for Relationship Marketing

The switch from traditional marketing to relationship marketing, you will be well on the way to attract and retain customers not only like your brand, they love him! Achieve this and success is guaranteed.

Some simple tips to help you begin to have an approach more relational with respect to marketing:

  1. Keep lines of communication open and honest with the customers;
  2. Accept the feedback and comments from their clients;
  3. Be social with your customers;
  4. Interact and engage with customers and potential customers through social media;
  5. Provide support and service exceptional that your competitors do not offer;
  6. Integrate the feedback of the clientse in improvements of products / services;
  7. Monitor what is being said about your brand online and respond accordingly;
  8. Offer a loyalty program for their customers;
  9. Step out of your comfort zone to show customers that you value it.

The marketing relationship with the customer is based on the management of the customer experience and on the improvement of the interactions with the customer to promote loyalty to the brand at the heart of the activities and efforts of marketing.

There are several ways in which companies deal with the marketing relationship with the customer, including the provision of excellent customer service; all The time! From before the sale until the sale.

Companies should “know” their customers individually and to anticipate their needs and offer the advantages of loyalty programs and rewards for them.

Companies typically turn to the internet and social media to search marketing initiatives of relationship with customers, which means thatsmall businesses can also benefit from relationship marketing, inviting customers to visit their sites, read and comment on blogs and communicating through social media platforms such as Twitter andInstagram.

The goal of relationship marketing with the customer is to build trust and engage customers to build and increase your brand loyalty. One of the best strategies to build relationships with customers is to focus on the emotion.

Other strategies in the relationship marketing with the customer include:

  • Show your customers that you value each interaction– consider spontaneously recognize them and delight them in unexpected ways;
  • Listen carefully to their customers and respond quickly: use tools of social media monitoring to respond to comments and complaints and answer to the concerns of its customers;
  • Offer quality information to customers– identify the topics and the interests of customers. After you create quality content about those topics and offer for free to their customers. Content such as informative videos about the products that they have purchased recently or newsletters that highlight your most loyal customers and share stories of them. It is worth mentioning that you must ask permission from your clients to share their stories.
  • Expand your loyalty program of creative ways– Any company can offer benefits and rewards, but you need to expand beyond the typical program of rewards and give people things that they love, or recognize them in ways that are unexpected and creative.
  • Communicate with your customers with frequency– A relationship is nothing without communication, therefore, communicate with clients frequently via social media, e-mail, messages, etc. (just make sure that the communication is to add value to customers and do not become intrusive or frequent too).

Examples and Cases Relationship Marketing

  • Ikea– The furniture manufacturer Swedish have a worldwide base of customers intensely loyal. When the company made a simple change of font in your book, the lovers of Ikea were the social media to complain. Instead of alienating your customers for a reason for the relatively silly (change of source of the catalog), Ikea has changed the font back to what it was before to keep their customers happy;
  • Direct Recruitment– Every year the company sends birthday cards manuscripts for clients and associates. This personal touch and simple helps customers to feel special, and not simply as consumers;
  • American Airlines– The airline maintains a comprehensive program of frequent flyers that reward customer loyalty with the promise of free flights, upgrades, and special discounts;
  • Dell– Dell computers created an online store especially for corporate clients with high volume. To adapt the inquiry process to the specific needs of the customer, Dell was able to streamline many of the difficulties faced by the buyers of corporate technology.Provide a higher level of service leads to increased loyalty.

The main Channels To Do the Marketing Relationship

The first step before you create a strategy of relationship marketing is attractive is to identify who are your target audiences and where they are.

This is the only way to get to know their preferences and tastes, create personalized messages and really make an impact on people – large enough to make them want to buy from you.

After all, customers are motivated to purchase products and services from companies able to generate some kind of emotional reaction, preferably one that involves values and beliefs.

This is why you should remain faithful to its principles: if your company is practicing its core values, and they are interesting to your audience, you will attract the right customer with much more ease. In addition to keeping your current customers more easily.

Marketing Ralacionamento in Social Media

Social media is synonymous with direct contact with the public and are great channels to build a relationship of trust.

In addition to offering an informal environment, the media sociasi allow communication much more efficient and fast, where it is possible to manage crises, to ask for and receive feedback, among other purposes.

In addition, social media have different rules of engagement. LinkedIn, for example, focuses on topics in corporate. It is possible to attract a contact through high quality content that solve some kind of problem or pain, and from this, start a conversation (relationship) that results in some sales, or other valuable contacts.

Twitter is much more “in the moment” and, although not work so well in the relationship, unless it is used as a channel for feedback and complaints, the main use of this social media is to make your company be seen. In this way, people can see your business in their timelines at different times, increasing the reach of your company.

Relationship Marketing in 2019 What It Is and How to Use in Your Company 2

Relationship Marketing Using Email Marketing

E-mail is one of the main tools of communication between company and contact, and is very useful for relationship marketing. This is the channel that you will want to use to generate new opportunities and to talk with leads to stimulate them and get the expected results.

Relationship Marketing Using the Mobile phone

Even not being a specific channel, think in mobile, it is essential for a good relationship marketing. Why?

Well, people are spending more and more time on their phones. Students, mothers, CEOs, VPs of large industries: almost everybody spends hours a day on their phones and knowing how to deal with this, you can generate many sales for your business.

But we are not referring only to social media strategies. It is important that each content and the point of communication is optimized for mobile devices, web site and blog to the newsletters, and content in general.

If a lead is open your page in your phone and it take to open, or be poorly formatted, it will probably not return more to your site (because it passes a bad image of your company or brand).

Another effective way to do relationship marketing using the mobile phone is using WhatsApp. Use Whatsapp to chat with their customers and create relationships with them. We have a super article full of how to do WhatsApp Marketing! Check it out!

Implementing a Strategy of Relationship Marketing in your Business

Relationship marketing can involve the review of important aspects of the way a company conducts its business.

This can be expensive, time-consuming, and has serious consequences for customers and employees. The only way to accomplish a strategy of relationship marketing effectively is to follow a marketing plan well thought out.

Companies must first analyze the demographics and historical about your customers to understand who they are, what they buy, and how to provide for them in the long term. The company should understand why a consumer returns to buy with the company.

There is the tendency to think that the customers return because the company has met as well, but maybe they will come back to a store because it is the closest to your home or the only one in the area that has a particular product that the customer likes.

Analyze the nature of customer loyalty is the best method for developing a marketing plan relationship cost-effective.

With customer data in hand, the company can start to target these customers, and develop marketing strategies unique to each customer segment.

A customer who is loyal because of the price of a product has different qualities to those that are faithful because they had a good experience of care.

Customers are loyal for different reasons and require marketing strategies of relationship custom.

Once implemented the marketing strategy, it is required a constant evaluation to determine its success. There are several metrics that companies can use to assess whether you are keeping your customers.

The metric that’s most obvious is the amount of recurring sales, but the companies can also verify if the clients are spending more, by opening the e-mail of the company, suggesting the company to friends or following them on social networks. All these are indicators of various types of customer loyalty.

The relationship marketing is based on the principles of customer experience management, which focuses on improving interactions with customers to promote greater brand loyalty.

Although these interactions may still occur in person or by telephone, a large part of relationship marketing came to the online world.

With the abundance of information on the internet and the growing giant of social media, most consumers expect to have easy access and personalized details about a company or brand and even have the opportunity to influence products and services through posts and reviews online.

Today, relationship marketing involves the creation of a two-way communication easy between customers and the business, tracking the activities of customers and providing personalized information to customers based on those activities.

For example, an ecommerce site can track the activity of a client, allowing it to create a user profile so that your information is conveniently saved for future visits and to that the website can send more personalized information to him by e-mail.

Visitors ecommerce can also access Facebook, Twitter, or Instagram to have an experience more simple and automatically connect to the updates of the ecommerce company in the media social. In this way, he will know when the store is offering special discounts or the launch of a new product.

It is here that the software of marketing automation and CRM can support a strategy of content marketing and relationship, facilitating the tracking and the action of client information.

The tools of social CRM are going to in addition to, helping to extend the relationship marketing in the sphere of social media, allowing companies to monitor and respond more easily to the problems of the clients, which helps to maintain a brand image better.

Conclusion – Make Use of the Marketing Ralacionamento You Also

Do not believe that the relationship marketing is just to do a good service. It requires more than competence and creativity to offer the differential, and that will transform a mere customer into a fan and “faithful squire” of your brand.

Therefore, the seguredo here is: know your consumer like no other company. Only thus will you be able to serve you in a personalised way and to go beyond the basics.

Relationship Marketing in 2019 What It Is and How to Use in Your Company 3

This way, you will carry out the wishes and questions of customers, and will be able to also extrapolate expectations and get to where he himself still had noticed that I would like your company to arrive, solving problems that he didn’t even know he had.