Proposal of Innovative Approaches of Relationship Marketing in Business By Lendel, Viliam; Varmus, Michal Business: Theory and Practice, Vol. 16, No. Ikea – The Swedish furniture maker has a worldwide base of intensely loyal customers. When the company. Relationship marketing focuses on making the most of the customers you already Partner Marketing – Paying a commission or fee to companies such as distributors, Show them you take in interest in what they care about.
These days, online, will you buy from a complete stranger? Chances are the answer is a big NO. However, as business owners, this means that we MUST go that extra mile to consistently create our know, like and trust factor.
To do this, it is important that we are consistently active on our social media platforms, website, and offline networking. Ask a fellow entrepreneur to look at your social media postings and rate them for content, connection and consistency.
The feedback can help you take your Know Like Trust Factor to a whole new level! Word of Mouth Referrals When it comes to owning your own business, word of mouth referrals are gold.
This is key to remember because customers rarely purchase products or services solely based on the products intended result. The answer includes all of the feelings and desires that come with that product and the results.
Relationship Marketing | What is Relationship Marketing?
By building your relationship marketing skills, you fulfill those additional needs. You provide more than just a product or service, you provide an experience. To respond to a concern means that you find a way answer the question that empowers your company AND the person making the concern. Create Business Opportunities When you build your relationship marketing skills, you also open the door to more business opportunities because a personal connection experience leaves a a long-lasting impression.
Who Employs Relationship Marketing? Many types of companies have something to gain from developing long-term relationships with their customers. Smaller businesses often serve a steady stream of regulars, and make little effort to draw in new customers.
5 Reasons Why Relationship Marketing is Important in Business
Imagine a small restaurant that sees a steady stream of business from the morning commute. Their daily presence is a large part of the business that restaurant does every day. Larger companies typically invest the most in carrying out sophisticated relationship marketing campaigns.
In some major companies, relationship marketing is a strategy that affects every department with a client facing purpose sales, customer service, shipping etc. Industry leaders constantly face competition from new companies who claim to provide similar goods with a higher-quality level of service.
Holding onto their existing customers is the only way they can maintain their position at the top of their industry. This is true for businesses in all industries, from cell phones to baby food. When the company changed the font in their ubiquitous catalog, Ikea lovers took to the Internet to air their complaints.
Rather than alienate their customers for a trivial reason, Ikea changed the font back in the next catalog. Direct Recruitment — The direct mail marketing firm sends out handwritten birthday cards to clients and associates every year. This simple, personal touch helps clients feel like Direct Recruitment cares about them as people rather than simply consumers.
American Airlines — The airline maintains a comprehensive frequent flyer program that rewards customer loyalty with the promise of free flights, upgrades, and discounts. Dell — Dell computers created a special online store for high volume corporate customers. By tailoring the ordering process to the specific customer's needs, Dell was able to expedite many of the hassles corporate technology buyers face. Providing a higher level of service leads to increased loyalty.
Vyvanse — The makers of the popular ADHD drug created an extensive online portal that included videos, forums, expert articles, and mobile apps to help those who suffer from ADHD.
Rather than relying on the strength of the product alone, the drug makers created a place for users to gather and interact that was linked back to the company.
Sites like Facebook and Twitter make it fast and easy for companies to communicate information to their customers. But in order to make this a long term relationship, the company has to get their customers to become regular followers of their social media profiles. As the chart shows, most customers do not elect to follow a company out of mere curiosity. Companies can increase their social media followers if they offer incentives like coupons or insider information.
Relationship marketing can involve revising major aspects of the way a company conducts business. This can be expensive, time consuming, and have serious consequences for both customers and employees. The only way to carry out a relationship marketing strategy in a thoughtful and effective way is to follow a comprehensive marketing plan.
Companies must first look at demographic and historical data about their customers to understand who they are, what they buy, and how to provide for them over the long term.
The company must understand why a consumers returns for repeate business. There is the tendency to think that customers return because the company has served them well, but maybe they return to a store because it is the closest to their house, or the only one in the area that stocks the product they want to buy. Analyzing the nature of customer loyalty is the best method develop a working relationship marketing plan. With a wealth of customer data in place, the company can begin to segment these customers and develop unique marketing strategies for each segment.
A customer who appreciates a product's value has different qualities than one who has had a helpful customer service experience.
These customers are loyal for different reasons, and require tailored relationship marketing strategies. Once the marketing strategy has been implemented, it requires constant evaluation to determine its success. There are a number of hard metrics that companies can use to measure whether they are holding onto their customers. The most obvious is repeat sales, but they can also look at whether customers are spending more, opening up email newsletters, referring the company to friends, or following them on social networks.
All of these are indicators of various types of customer loyalty.