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: Table of contents
Relationship marketing definition
Benefits of relationship marketing
Examples of relationship marketing
Relationship marketing definition
Relationship marketing is a marketing approach qatar telephone number data 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
