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What is Relationship Marketing?
There is truth to the idea that customer retention contributes to more revenue than customer acquisition. Management consulting company Bain & Company shared their findings that a mere 5% boost in customer retention can produce 25% higher profit.
This is because return customers already know what to expect from your brand. And when they’re happy with your products and the service you provide, they are likely to keep coming back.
Consumers tend to stick with what they’re comfortable with and products they already know are high quality. They would rather not explore competitors they know very little about.
Once you have gained a customer’s approval, they will be more willing to keep doing business with you. In addition to lower operating costs to maintain them over time, loyal customers are likely to refer their friends, families, and social circles to your products or services.
But while many customers will be happy or satisfied with your products or services, your efforts should not stop there. This is where the importance of relationship marketing enters the picture.
The cost of serving loyal customers is noticeably less than courting a new one.
To remain cost-effective in your marketing, you must identify the subgroup within your target audience that holds the potential to be long-standing customers. From there, you can launch relationship-building marketing efforts.
Relationship marketing is a strategy that focuses on cultivating meaningful relationships with your customers to ensure brand loyalty. It doesn’t center on short-term goals or gaining one-time sales transactions. Instead, it prioritizes customers’ overall satisfaction, so they are more likely to continue supporting your brand.
Why is Personalization Important?
Brands don’t gain long-standing customers simply because they are happy with a certain product—it’s a bit more granular than that.
A huge part of relationship marketing involves personalization: learning about and addressing customers’ pain points, challenges, aspirations, and lifestyles. By collecting relevant data and understanding these elements, you can design a very specific marketing strategy with higher chances of success.
Over 50% of customers expect personalization, and these strategies can increase revenue by up to 15%.
Powering relationship marketing with personalization can be done in various ways:
- Offer incentives that cater to customers’ specific interests to encourage repeat purchases (i.e., birthday gifts, rewards, early access)
- Curate product recommendations based on their browsing and purchase history
- Personalize all brand messaging, from emails to app notifications
- Use geolocation to offer relevant products based on where your customer lives
These aren’t the only ways to take a personalized approach to establish brand loyalty. Email marketing and webinars are worth looking into, too.
Email Marketing Has the Best ROI for Any Digital Marketing Channel
Content marketing is arguably one of the most important digital marketing channels. It is an organic way to attract new customers and boost first-time sales.
On the other end of the digital marketing spectrum, email marketing gives subscribers and existing customers the slight push they need to generate repeat sales. This is why it can potentially provide the highest ROI among your digital marketing channels.
To fully benefit from the potential of email marketing, you must use the right tools to track engagement and divide your target audience into subgroups.
In addition to the right email marketing software tools, you must also pay close attention to the content you write and the recipients who will receive them.
Here are some things to consider:
- Whether you’re sharing information about your brand or announcing new products or sales promotions, ensure all email content is relevant to the recipients.
- Instead of maintaining just one general email list for all subscribers, filter your audience into subgroups. Create separate lists based on specific interests, shopping history, and demographics.
- Ensure your email subject lines capture the reader’s attention in one glance.
Email marketing is one of many ways to establish brand loyalty and get repeat business. It can be one of the most powerful ways to connect with your audience and keep them interested—as long as you understand them and cater to what they want.
Webinars Create Personal Experiences and Relationships
A new buyer is more likely to become a repeat customer if you put noticeable effort into providing top-notch information. A critical element of digital marketing is to put your brand forward as a trusted thought leader in your industry. If customers know they can turn to you for the information they need, you will gain their continued support.
One way to do this is through content marketing—specifically webinars. With this medium, you can share how-to guides, product demonstrations, and other types of educational content that your audience needs. And with robust webinar software, you can easily create top-notch presentations and boost your marketing efforts.
Webinar presentations can contribute to the success of your relationship marketing strategy through the following:
- Explain concepts and solve problems for your audience.
- Introduce new concepts or products your audience might like.
- Your brand gains authority and credibility through informative webinars.
- Provide useful and relevant information about your industry and your brand’s place in it.
- Become a go-to brand for the valuable information you share on your webinars, in addition to the high-quality products and services you offer.
Traditional marketing is heavily based on pricing, promotion, placement, and product management. Aided by webinars, relationship marketing is a refreshing change.
Webinars give you time and space to showcase your industry expertise. It builds customers’ trust in your brand, thus leading to a stronger connection.
It’s vital to fulfill your business’s promises to your customers. You want to meet those expectations to achieve customer satisfaction, and from there, you can start building long-lasting relationships with them.
Fresh leads and first-time sales are always welcome. But don’t underestimate the revenue you bring in from loyal patrons. Create and implement a relationship marketing strategy that allows you to connect with your target audience, make them choose your brand for their future needs, and recommend you to people in their circle.
Through relationship marketing, you can build a solid customer base and generate repeat business. Make it part of your overall marketing plan today.