Relationship marketing is a core part of any customer relationship management (CRM) strategy. This article will cover the relationship marketing definition, examples, and main benefits.
Relationship marketing is how companies build lasting customer relationships. The goal is to build a strong, emotional connection with customers and enhance the customer experience.
By investing in strong relationships with customers, businesses can reap concrete results — from a rise in loyal customers to higher profitability. In fact, a 5% increase in customer retention rates can boost profits by as much as 25%.
Read on to learn what customer relationship marketing is and how it can help your company.
- Relationship marketing definition
- Benefits of relationship marketing
- Examples of relationship marketing
Relationship marketing definition
Relationship marketing is a marketing approach that involves building relationships with customers. A main goal of relationship marketing is to encourage customer loyalty.
Rather than focusing on short-term sales wins, relationship marketing aims to create a long-term customer base. These customers are more likely to choose your brand over the competition and make repeat purchases.
5 characteristics of relationship marketing
Relationship marketing differs from traditional marketing in many ways. Here are the five characteristics that make relationship marketing unique.
- Long-term goals. Transactional marketing aims to drive one-time sales and immediate results. But in relationship marketing, the purpose is to build a long-term relationship before selling to a potential customer.
- Customer-centric messaging. Relationship marketing emphasizes personalized communication that’s tailored to each customer. Traditional marketing instead tends to promote a single message about a product or brand.
- Two-way dialogue. Relationship marketing encourages two-way dialogue with customers, for example asking for feedback and giving personalized support. But in traditional marketing, communication is often one-way.
- Customer retention. Relationship marketing emphasizes customer retention and customer loyalty. This differs from traditional marketing, which aims at new customer acquisition.
- Database or CRM. Relationship marketing works best with an all-in-one CRM suite like Brevo to store customer data. This includes customer demographics and purchase history. Companies can then use this data to enhance the customer experience.
Related: What is CRM? A Complete Guide to CRM
Benefits of relationship marketing
Relationship marketing can give your brand a competitive edge and help you achieve key performance metrics.
Here are the main benefits of having an effective relationship marketing strategy.
Increased brand loyalty
With the right tactics, relationship marketing leads to increased customer loyalty. This means better customer satisfaction, reduced churn, and increased customer retention rates.
Loyal customers often buy more from your company over time, which boosts customer lifetime value (CLV). They’re likely to be receptive to upselling or cross-selling. They may also serve as brand advocates, promoting your business to their family and friends via word-of-mouth referrals.
Reduced marketing costs
Relationship marketing can help you save on your marketing efforts. That’s because loyal customers already have a high level of brand awareness. You don’t need to spend as much promoting new products to current customers with whom you already have a good relationship.
Better understanding of customer needs
Relationship marketing is more personalized than traditional marketing. This can lead to a deeper understanding of your customers’ needs, pain points, and demographics. That’s because the best way to get to know your audience is by analyzing customer data over time.
Through relationship marketing, you can better determine what resonates with your customer base. This will give you the insights you need to boost customer engagement and improve your products or services.
Stronger competitive advantage
This marketing approach can give you a leg up over competitors who don’t have an effective relationship marketing strategy. Because when customers have an emotional connection with your brand, they’re more likely to choose you over the competition.
Strong customer relationships take time to build, but they’re among the best ways to make your brand stand out in a crowded marketplace.
Examples of relationship marketing
There are many ways to build strong relationships with customers. Here are a few relationship marketing strategies you can use:
- Loyalty programs: Establish a loyalty program to reward repeat customers. Offer incentives, such as free gifts or discounts off their next purchase.
- Customer feedback surveys: Run polls or surveys to gather customer feedback. This shows customers you appreciate their input and helps you improve your products or services.
- Social media engagement: Interact with customers directly over social media channels. This includes replying to comments and sharing user-generated content.
- Personalized email marketing campaigns: Create stronger customer relationships with personalized emails, such as birthday greetings or post-purchase campaigns.
- Conversational marketing: Build two-way customer relationships over live chat and social media messaging apps (e.g. Facebook Messenger, Instagram Direct Message, WhatsApp).
- Ecommerce content marketing: Share content that aligns with your customers’ needs. This includes ebooks, newsletters, tutorials, and videos. No matter the type of content, make sure you provide value to your target audience.
Build stronger customer relationships with Brevo
Start building lasting customer relationships with Brevo’s all-in-one CRM suite. Whether you want to run targeted marketing campaigns or manage customer interactions, Brevo has everything you need.
Connect with your customer base across channels. Then, store all customer data in one place. With our easy-to-use tools, anyone can run a successful customer relationship marketing strategy.
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