Many businesses today still practice the traditional approach of transactional marketing, wherein a focus is made on increasing the amount of customer acquisition and individual sales. But in a world that is fast becoming more connected, emphasizing long-term customer engagement is a far better strategy than merely relying on short-term goals.
The value of relationship marketing then should not be underestimated. It is the creation of strategies that target customer satisfaction and retention, both of which are attained thanks to the following results of relationship marketing:
- Decreased likelihood of customers switching to competitors: Customers who are not thoroughly satisfied with a business’s products and services are more likely to shop around. But a more beneficial relationship with the company encourages customers to become less price-sensitive, and instead key in on the value the company offers.
- Free word of mouth promotions and referrals: Harvard Business Review introduced the concept of net promoter score in 2003. It describes how customers view the company’s performance and the likelihood of them referring the company to their friends. Strong relationships with clients are important in raising the net promoter score.
- Minimized cost of acquisition: Because new customers are being brought in by satisfied clients, the costs of advertisements and marketing campaigns can be significantly reduced.
Jeff Lupient has spent most of his professional career in the automotive dealership industry, where he was able to hone many of his skills, including business development and sales. More articles on these subjects can be read on this blog.