What is Relationship Marketing?

Relationship marketing is the idea of creating and nurturing a relationship with your customers that keep them coming back to you again and again. By providing a great product and excellent customer service and by getting to know your customers and allowing them to know you, customers will be loyal to you and keep coming back for more - in theory and, actually, in practice.

Return Customers = Less Work, More Money

Laura Lake, Marketing Guide on About.com, cites the following statistics in her article entitled, “Customer Relationships are Key to Your Marketing Strategy.” For starters, return customers typically spend 1/3 more than new ones. Amazingly, you will also get 107% more referrals from returning customers than from people that have not done business with you in the past. And finally, it costs at least 6 times more to catch new customers than to generate repeat sales with an existing customer.

When thinking about the overall business development and marketing strategy of your company, focus first on the relationship you have with existing customers. When you have a large percentage of repeat customers, you will be more attractive to new customers, which will soon become part of your customer base. This could spark a debate that includes, at some point, references to chickens and eggs but the point is that if you are spending most of your time and money caring for your existing customers, it will help your business grow in other aspects as well.

There are many ways to work the customer-business relationship to ensure that you customer is happy. Here are five points to consider when thinking about how you can best utilize relationship marketing in your business.

Customer Relationship Tip #1: Provide Top-Notch Customer Service

The main reason why customers do not come back to reuse your business is because they feel your business does not care. And when they leave your business, they typically go to your competitor that has a good offer, and wants their business. Show your customers that you care by effectively handling complaints, anticipating their needs and wants, and providing quick and effective service.

Customer RelationshipTip #2: Treat Your Customers as if You Want a Referral. Then, Ask for a Referral.

If you goof, do your best to resolve customer complaints because upset people say bad things about you. When everyone is happy, referrals are easy to get.

Customer RelationshipTip #3: Shower the People You Love With Love

When you get comfortable with your customers they may begin feel under-valued. Stay on your toes. Generously offer new products and services and be damn appreciative of every second they give to you. They have options of where to buy stuff - no matter how protected you think your niche is.

Customer Relationship Tip #4: Listen, Learn, Give

Do not assume that you know what they want – ask them with surveys and questionnaires. Then move through your business as a customer to see what it is like and where you would make improvements. You could even conduct focus groups of a random sampling of customers, using an unbiased facilitator to gather information. Consider hiring “ghost customers” who will go through your sales process as a mock customer and give feedback on everything from how friendly and knowledgeable your salespeople are to the delivery experience and product quality.

Customer Relationship Tip #5: Use Your Company Business Blog to Communicate

Use your company’s business blog to communicate with customers until they are ready to make a purchase. It is often said that customers will hear a message at least seven times before taking action and making a purchase. By utilizing a business blog, you can easily, and cost-effectively, create a two-way communication with your existing and new customer pool. Wayne Hurlbert’s article on webpronews.com, called “Relationship Marketing: Business Blogs Are The Key” provides insight into how to optimize your blog for relationship management with your customers.

As you write your daily blog entries, your readers get to know you and your business on a more personal level. Your blog begins that all important relationship with your prospects and current customers. You have started a blogging conversation.

As they read about your daily business activities, your problem solving ideas, your business advice, and your various products, they begin to think of themselves as a part of the company.

In fact, they are!

Wanna Go Outside? The Dirty Part

Don’t run around shaking your customers’ hands with a fake smile. Customer relationship management is not something you can just try half-heartedly. It requires a dedicated effort from you and all (yes, ALL) of your employees. Your CRM goals also need to be aligned with the goals of your other marketing, sales, and operational efforts. Relationship marketing should not replace the never-ending need for new customers that will help your business grow. A comprehensive approach is the best way to make sure you are taking care of all of your existing, and potential, customers.

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