Relationship marketing is like wealth earned through connections or relations.
Relationship Marketing in simple terms is maintained good relations with customers and industries for a long-term benefit. Making new long-term customers is very difficult and challenging, therefore, relationship marketing helps to retain these customers for a long period. This might even result in getting customer loyalty and their confidence in us(the company). Having good contacts with relevant industries is important. Relationship marketing also helps in spreading free word-of-mouth and indirectly promoting the brand. But how is it possible?
A company can have a strong base of relationship marketing if it starts building a personal bond with its customers. It can be through various social media promotions, by providing its loyal customers extra offers. The company can also come up with an app that leverages company performance based on its customer preview and also gives its customers a privilege to maintain their shopping details, their choice, and preferences that could get installed in the company directory which will help in making the company more efficient shortly.
Relationship marketing is one of the most important components that help the company in the long run. Maintaining and enhancing relations is very important as they directly or indirectly help in spreading word-of-mouth about the company. As much as important it is, it is even a sensitive segment. Even a small misfortune can bring about some grey areas to the company. Word-of-mouth can bring us brownie points as well as plant a bomb on us.
The company should solicit customer advice, feedback, and various surveys. And when the company commits a mistake, it should assure its customers that such a thing would not be repeated next time. It can even ask for customer advice as this would instill in the minds of the customer that the company values and gives importance to their perception as well.
If we take the case of Lay’s, for years and years it has been retaining its throne amidst the crowd-sourced competition. It never fails to overwhelm its consumers by bringing more and more new potato chip flavors to the nation. Their two main campaigns, ‘Do us a Flavor’ and ‘Taste Spuds’ turned out to be a big social media hit because they placed the focus squarely on an individual.
Build something 100 people love, not something 1 million people kind of like.– Brian Chesky, Co-founder of Airbnb