When we think of relationship marketing, we can say that it encompasses strategies such as:
Brand construction and diffusion;
Loyalty and creation of market authority;
Contact with the public in different channels of Digital Marketing and communication;
Close communication of each person with the Ideal Client Profile (ICP);
Marketing automation with your contacts.
The main objective of establishing this relationship is to win over and retain customers, in addition to converting them into brand advocates.
Another objective is to become a reference in the market, mainly due to the good experiences offered to users. To achieve all this, the company basically creates a relationship in which it offers advantages to its customers and prospects through well-structured communication actions.
What is Relationship Marketing used for?
As we have said, Relationship Marketing has as its objective much more than helping sales. It's not just to get customers, but to get fans. But that's a two-way street: you need to offer something that your customer can't get elsewhere. In the end, giving is how you receive it.
Relationship Marketing is not a strategy that occurs only in the short term: on the contrary, its goal is to create an ongoing and preferably ongoing relationship, either by making a customer become a fan or by making a customer of a product or service basic evolve to more complex alternatives of your solution.
And, in addition to generating new income and recurring billing, Relationship Marketing brings the client closer to the company, which benefits not only the client – who gains faster and more personalized answers to their doubts and problems – but also the company, which receives feedback more consistent and you have the ability to learn with your audience and continually improve your solution.
Think, for example, that, with Relationship Marketing, the public can get closer to your company and learn more about what you do and the solutions you offer. In this way, the probability that he perceives the value of your solution is greater, and, therefore, the probability that he will buy is also greater.
In addition, if the public has a good experience with your company, it is likely that they will want to spread that positive experience to other people, generating a multiplier effect that impacts the acquisition of new customers.
Why is it important to maintain the relationship?
When understanding what relationship marketing is for, it is common to wonder if it is really important for a company. After all, is this the right way to do marketing? What is the problem with the traditional model?
The truth is that Relationship Marketing is a complementary strategy to several others that you can use. However, it's essential to know that this is in contrast to the more traditional marketing approach, which focuses on promoting something without worrying too much about your prospect's timing.
In the model that does not value the relationship, the customer cannot return to buy something from the brand in the future or may even forgo a purchase. Meanwhile, organizations that combine elements of traditional and relationship marketing can place the customer in the most important role in the success of the company.
Good value can be the missing factor when deciding on a purchase
Making the customer think of your company when it comes time to buy should be the central objective of the entire Marketing team.
However, there are other advantages to investing in this initiative. The first is that maintaining the relationship with your client, even with the one who has already closed a purchase, can be very economical. The relationship cost of keeping your old customers is much less than the cost of acquiring new customers.
This may be the factor that was missing at the time of each customer's purchase decision, being able to generate not only more purchases by the same customer but also new indications.
Another important point is that, by maintaining a relationship with the public, your company can educate them and help them identify a need that was not so clear before. In this sense, content production plays an essential role in leveraging the results of your relationship and digital marketing.
What are the benefits of using relationship marketing?
Now that it has become clearer what impact that Relationship Marketing can generate in your operation, we are going to know 3 more benefits that this strategy can provide to any company.
1. Increase LTV
Those who work with solutions in the subscription model know that LTV (Lifetime Value) is the metric that helps to understand the importance of keeping the customer as long as possible. Only then is it possible to deliver an amount greater than what was spent on its acquisition?
Therefore, a relationship strategy helps to increase customer lifetime value. You will be able to win loyal customers, which leads to new purchases and a higher LTV.
Additionally, loyal customers are likely to become brand ambassadors, recommending products and services to friends and family, helping to lower your CAC.
2. Reduced spending on marketing and advertising.
Spending on marketing and advertising to win new clients can decrease with relationship-focused work. As customers tell each other about a brand's products and services, it's common to have an organic boost in sales.
Brands that focus on this marketing model spend little to no money on paid marketing and ads.
3. Greater alignment of communication with the client.
Organizations that emphasize relationship marketing have a stronger organizational alignment around providing an exceptional customer experience. In this case, all the company's teams must work together to attract satisfied and happy customers in the long term.