Posted in Marketing and Strategy Terms, Total Reads: 655
Definition: Relationship Marketing
Relationship Marketing deals with building long term relationships with larger customers so that customers help us to maintain the ongoing business. They involve marketing activities to develop and manage trust with customers. Account executives are assigned to fulfil this purpose. They maintain sales database of customer profile, their buying patterns and history of contacts etc. and utilise them accordingly to assess the important customers and maintain relationship with them by fulfilling their needs.
Any organization must exceed the expectations of the customer in order to retain and maintain the relationships with them. It makes sense to keeps customers happy through building relationships because it takes a lot of time to acquire new customers but comparatively less effort to pursue an existing customer for a repeat purchase.
Relationship Marketing gives importance to both the sellers and buyers in the marketing process. It is not about merely selling the product to potential buyers , it involves many more activities and people in the buying process including the customers. It views marketing as an exchange where both sellers and buyers help to shape the outcome and direction of the product that will be offered in the market.
Relationship Marketing involves both attracting new customers and retaining them. Methods used for attracting new customers are promoting the brand, product and various offers. Methods used for retaining customers include loyalty programs, excellent customer service, customer satisfaction etc.
Seller –Customer Relationship does not end after the purchase of the product. Important feedback is obtained from the customer and continuous relationship is built related to products and services. The customers are notified about the latest offers and discounts thus enabling more communication and hence a better relation. For example: After buying a car relation is further maintained by feedback, customer service centres, extended warranty periods, maintenance plan , promotion etc.