The term relationship marketing has been tossed around the industry more often recently. This makes one wonder what type of marketing it is and what it entails. That is exactly what we have accumulated in this article; the basics of what you should know about this kind of marketing.
So let's get started:
What is Relationship Marketing and How It Can Affect Your Business?
Relationship marketing is a bit unconventional, differs from traditional marketing. It's more relational than transactional. The traditional way of marketing focused mainly on making more sales. However, the newer way focuses on not just generating an overall good brand experience that will attract more customers but also retaining the already existing customers.
In hindsight, relationship marketing is everything you do, strategy and plan, to build a good relationship with your customers. This kind of marketing aims to portray your business as the ideal and best option for the audience. It includes everything from influencer programs, affiliate marketing and referral campaigns.
Why has the Requirement Increased?
The shift to more personal marketing was essentially derived from the increase in customer demand to know that the brands they collaborate with or use don't just care about the sales and the products but also about them. People felt that they needed to know the real faces behind the brands, their goals and aspirations, to trust the brands to know that they would go above and beyond to satisfy their needs and help them if any mishap arises.
With you having a basic idea of relationship marketing, let us move on to a few of its benefits.
Relationship Marketing Helps Make Price Changes Easy
Price changes are essential to the long-term growth of any business, yet brands fear this step because they fear that the price increase will cause a loss of customers. This is where a solid relationship marketing strategy comes into play. If you develop a deep connection with your customers rolling out, higher prices would not seem daunting since most would stay loyal regardless.
Relationship Marketing Creates a Safe Place for Feedback
When you already have plenty of pleased, loyal customers on your side, you have an immediate test market. If you need to try out a new product or suggest a new service, your existing consumers will be there to provide feedback. Do you want to know what you've been doing and what your customers want from you? Inquire with your long-term clients. Their feedback can assist you in determining your brand's strongest points and areas in need of improvement.
Here's an example: A perfect example of relationship marketing used by a big brand is; Lay's. Lay's has been using a customer-sourced challenge, the Do Us A Flavour campaigns, for years to bring new potato chip flavours. These campaign videos became huge social media hits with associated hashtags and promotional visuals because they address the customer by name and rattle off pun after pun about their ideas. That's an outstanding demonstration of relationship marketing because it focuses solely on an ordinary person.