The Importance of Relationship Marketing
Customer relationships are the lifeblood of every good company. Relationships between a company and their customers, distributors, employees, referral sources, are vital to continued, sustained growth, and stability. Loyal relationships with these valued individuals make for a strong bottom line. So, why do so few companies focus on customer relationship marketing? That’s a great question, and probably the most frequent answer is lack of understanding of the potential profits in keeping existing customers happy versus constantly acquiring new ones.
When you consider that two-thirds of customers switch from one company to another because of a perceived attitude of indifference from the former company, it makes sense to focus as much attention on customer retention as you do on customer acquisition. Don’t be a victim of indifference. Develop a good relationship marketing program that takes into consideration both customer relationship marketing, and customer acquisition through relationship marketing. With well-planned relationship marketing efforts using spaced repetition education i.e. keeping your company name in front of the customer. In today’s market with people being bombarded with all types of media, it takes the customer seeing you and/or your marketing material a minimum of at least 7 to 10 times before it will get noticed and even then there will need to a perceived need on their part, a perceived valued added on your part. Keeping your name in front of the client or potential client can be achieved in a number of ways.
Ø Meeting face to face
Ø Telephone follow up calls
Ø Gifts – something they will see and use everyday (i.e. calendar, coffee cup, a candy jar for their desk, or make it industry specific – give a contractor a measuring tape, etc.)
You can impact retention — and that will impact the bottom line when you make the effort to stay in touch and develop and nurture the relationship. According to customer relationship management experts, companies can increase revenue by 50% if they retain only 5% more of their customers. Don’t you want your share of that revenue?
Solidify loyal relationships with your most valuable customers.
Business owners tend to be driven, both financially and philosophically, to make cold calls, pursue new contacts, and acquire new customers. But often, little thought is given to nurturing relationships with the customers they already have. Given that acquiring a new customer can cost five times more than retaining an existing one, this can be a costly approach.
Customers who are continuously courted, interacted with, and reminded of your company’s presence and value are less likely to go racing off when competitors come calling. Making those customers feel recognized, known, and appreciated can go a long way toward locking up their loyalty. And, it’s also a great way to get them referring others to you.
We offer various business services which keep a business in the forefront of their prospects and client’s minds. Contact us and let us see if we can be of service in helping with your relationship marketing.
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