For your business to thrive, you have to maintain authentic and long-lasting customer relationships and increase customer retention. Research shows that engaged customers contribute up to 50% more company income and sales than one-purchase buyers.
Customer relationship marketing uses personalized communication between the company and the customer to make their experience better. The established relationship can turn into a long-term contract between the company and the customer. Primarily, the business will focus on customer loyalty and long-term engagement rather than short-term sales.
Eventually, once the relationship marketing strategy has worked, it will create a secure customer connection, which, in turn, will encourage free word-of-mouth recommendation and customer retention.
The traditional marketing approach puts its focus on increasing visitors for increased individual sales. However, the problem with transactional marketing is the fact that customer acquisition costs are insufficient. This is because a customer will select the brand one time due to personal gain. One will not be interested in making a connection with the brand.
A successful business will combine different elements of transactional and relationship marketing to produce as much revenue as possible. However, nowadays, we see customer relationship marketing beginning to play a more critical role for all companies.
Studies show that acquiring a new customer is up to 25 times more expensive than retaining an existing one. Thus, it’s clear to see why some businesses continuously seem to be at a burning rate.
Around two-thirds of all customers will change one business to the other due to lack of attention. However, statistics say that around 50% of your customers are satisfied with a brand, but only 30% of them will engage with it. Why? It’s simple. Some companies haven’t understood the benefit of customer engagement.
One of the main reasons why a customer will not want to engage with you is because you’ve created a negative experience from the beginning. Even though you’ve sent that welcome email, maybe they haven’t received it. If you want to find out why your email marketing isn’t working, take a look at this article.
Once you’ve ruined the initial experience, it’s difficult to regain their trust. So, the business needs to figure out how to make an excellent first impression to all of your customers. This will help you to implement strategies for effective consumer relations.
Below are examples of Relationship Marketing strategies that you must implement.
1. Quality Customer Experience
By offering consistent personal support with whatever question or concern they may have, you’re showing that you care about the person and not just their money. The majority of people will leave and avoid using the brand again due to the lack of customer service. Once a customer sees that the brand cares about them, it’s more likely that they will remain loyal to you.
There are a few steps that you can take to improve the customer’s experience, such as:
· Quickly resolving issues
· Engaging with customers on social media
· Thank them for purchasing with a surprise gift card
Nowadays, many businesses will use social media to engage with potential customers and customers themselves. Besides, if you get yourself known on social media, you will encourage better brand awareness. The more people notice your presence on social media, the more likely it is to bring a new customer, for free.
2. Introduce a Loyalty Program
Such a program takes the ‘thank you’ voucher to a whole new level. The program is made for those that have spent a considerable amount of money on the business. The good news is that you have full control over the loyalty program as you get to decide:
· Who gets the incentive
· How much/many to give away
· The type of program
It’s increasingly common to see big brands having a loyalty program. For example, Mcdonalds has created a Monopoly game that encourages customers to purchase more food to win rewards. In addition to this, Starbucks customers are also encouraged to spend more money into the business to earn stars. Once several stars are collected, you win a prize.
Nonetheless, you don’t have to take it that far if you don’t want to. For example, you may ask a customer to refer or share the brand on social media, to win a discount code or a freebie. Additionally, you also have to ensure that the program corresponds with the business. Hence, if you sell inexpensive items, you cannot expect to ask a customer to spend thousands of dollars on your products.
3. Request Feedback
There are many creative ways to ask customers to provide feedback without seeming boring or annoying. For instance, take a look at what Starbucks is doing:
Consumers are allowed to come up with their drink, and others have the chance to vote on the best ideas and also share thoughts and opinions. You get to talk, and Starbucks will listen. Hence, this relationship marketing strategy will strengthen the relationship between the brand and customers and increase customer retention.
Even if it can receive negative feedback on the items they currently have, they seem open to listening to everything; everyone has to say. This is precisely what you need to do. For a productive relationship, you should welcome engagement regardless if it’s positive or negative. This way, you will ensure that customers will not use social media to portray the business in a negative light.
For the information to be used effectively, you must know how to use it properly. A great example is the A.C.A.F model.
You will have to prioritize the feedback and implement it accordingly. Therefore, you will know who has shared constructive ideas and who is there to create an adverse reaction.
4. Tailor Social Media
Social media and email marketing play essential roles in generating revenue. Social media, however, has a massive role in all aspects of online businesses. It helps you to communicate with customers, generate new leads, and turn visitors into paying customers. Around 50% of all customers will turn loyal to the brand if they can interact through their preferred channels.
However, it can damage the business when the balance between too much and too little is off. Spreading yourself on all social media platforms is ineffective, time-consuming, and expensive.
You have to figure out where the majority of your customers spend the most time. This will create a sense of community and improve engagement levels. Furthermore, you can also use social media to cater to customer events to connect with customers to build a tight-knit community that goes above the internet.
Conclusion on Relationship Marketing and Customer Retention
Relationship marketing isn’t simple to develop as you have to take time to figure out what works best for your brand and customer retention. If you lay the foundation with the strategies mentioned in this review, you can create long-term customers. Once a customer is loyal to the brand, you will receive recommendations for free. In addition to this, a loyal customer is more likely to give you feedback than a one-time customer.