Devising Relationship Marketing strategies to foster customer loyalty
Modern customers are bombarded with new choices and purchasing decisions every day. The internet has allowed individuals to access thousands of markets in one place, making the process of browsing products easier than ever. However, as the world is squeezing into our devices, ensuring customer loyalty is proving to be a struggle for many businesses trying to thrive. Consequently, organizations are turning to relationship marketing strategies to connect with and retain their customers’ attention.
Relationship marketing is one of the aspects of marketing that puts emphasis on long-term engagement and aims to nourish relations directly with consumers. Professionals employed in this field need to upskill and adapt to the dynamics of new-age relationship marketing tactics to ensure maximum customer retention.
Fortunately, the path to building a winning customer relationship strategy is not as daunting as it appears to be. Let’s dive deep into the subject and learn how sales and marketing professionals can outrun the competition by devising suitable relationship marketing strategies.
Contents:
1. Importance of Relationship Marketing
2. Key to customer loyalty
3. Build a winning Relationship Marketing strategy
Key Highlights:
Relationship Marketing strategies offer long-term engagement and high customer retention when executed well.
The cost of customer acquisition is five to twenty-five times more than the retention cost.
Even a 5% of increment in customer retention could drive a profit of up to 95%.
IIM Lucknow provides marketing strategy courses to help professionals upskill to adapt to the ever-changing consumer behaviours.
Big brands like Apple, Starbucks and Volvo use this tactic of marketing very often.
96% of the customers say that having good customer service is extremely important for brand loyalty.
1. Importance of Relationship Marketing
Finding new buyers is one of the most tiring and expensive tasks a business has to carry on. In fact, customer acquisition typically costs up to twenty-five times more than the cost of retaining existing customers. Relationship Marketing strategies serve as an ideal way for organizations to build a retaining buyers base.
Apart from saving money on acquisition costs, relationship marketing helps brands bring more profit in the long run by increasing the brand’s overall market value. For an instance, it is estimated that improving the retention rate by merely 5% could result in exponential profits ranging from 25% to 95%. This makes relationship marketing a shining chance for trained sales professionals to turn existing customers into loyal buyers.
Learning all ins and outs of relationship marketing has never been this easy. Individuals planning on climbing the career ladder as relationship marketing specialists can simply enrol in the IIM Lucknow marketing strategy course.
2. Key to customer loyalty
Regardless of the type of business, a healthy customer relationship is vital to building long-term customer loyalty. Customers make purchasing decisions based on their emotions and past experiences with the brand.
Marketing professionals need to forge strategies around the brand so that it appeals directly to their customers’ emotions. If a brand learns how to stay consistently relevant to its target audiences’ emotions, it becomes easier for consumers to stay loyal to it. Massive brands like Apple, Volvo, and Budweiser employ these sales and marketing strategies every day to nurture their relationship with their customers.
With the right relationship marketing, organizations not only build but also maintain the shoppers’ commitment and faith in their brands. However, creating a strong brand reputation is not something a business can do overnight. It takes sound knowledge and effective execution of practical sales and marketing strategies to foster customer loyalty.
Disruptive e-commerce technologies have made it easier for customers to choose from a sea of brands online. Both start-ups and well-established businesses are fighting for their slice of the cake on the internet, the biggest market in the world. In midst of all this, ignoring relationship marketing could result in permanent loss of the customers, as well as scaling opportunities. On the contrary, marketers certified from the popular relationship, sales, and marketing courses have a far better chance of contributing to the company’s success.
3. Build a winning Relationship Marketing strategy
A well-curated relationship marketing strategy is nothing less than a full-fledged roadmap to success for businesses. By building an effective strategy, business owners and marketing specialists ensure the cultivation of better relationships and boost customer retention.
Here are some examples of how brands use sales and relationship marketing strategies to drive growth:
a) Customer loyalty programs: Loyalty programs are one of the most effective customer relationship strategies used widely by brands as big as Starbucks. These programs make buyers feel valued by rewarding them when they choose a certain brand’s products or services. As per an MIT research, using proven loyalty programs can record up to a 77% increase in repeat purchases.
b)Customer service guarantee: 96% of the consumers believe that customer service is a critical factor when it comes to brand loyalty. Establishing your brand as attentive, reliable and prompt in delivering customer service is one of the key tactics in relationship marketing.
c)Customer data collection: Custom data helps in improving the overall customer experience, allowing businesses to cater to the customer’s unique needs and introduce personalization. Collecting customers’ data also enables brands to come up with the most suited relationship marketing strategies for every target audience.
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