What is relationship marketing

The relationship marketing can be defined as all those activities that allow your company to interact with the customer and create connections with them (or him).

In simple terms, we are talking about loyalty building, managing, monitoring, optimizing, and improving the relationship between the customer and your company: that's what relationship marketing means.

This particular form of marketing is defined as one to one, it indeed occurs between you (the company) and the end customer. In practice, between you and those who use your tools or services.

Relationship marketing does not "shoot in the crowd" but focuses only on a very narrow target of consumers. This target is extremely profiled and is, in reality, the result of years of experience. Relationship marketing therefore exclusively concerns your stakeholders  (already acquired customers who are part of your core business) who must be encouraged to remain such.

How to Effectively Conduct Relationship Marketing

To engage in relationship marketing, essentially, all you need is creativity: exclusive clubs and perks for customers, fundraisers, affiliate programs, member get members, and the list goes on.

To achieve the goal of creating customer loyalty, it's crucial to understand who is part of your core business (age, interests, behaviors etc.) and therefore it can be quite challenging to identify that very important segment of your market due to the physiological evolutions of the same target over the years or even months (depending on the sector).

Operationally, how is relationship marketing conducted in 2019?

Simply put, at a basic level, on the web and digital front, using a CRM (Customer Relationship Management) system is essential. It's a complex management tool that creates and manages automations (sending birthday wishes via email to clients, inviting renewal when a product expires). These systems are based on a contact database (leads).

In addition to a CRM, to conduct effective relationship marketing, one also needs:

• A valid and professional customer service for post-sale support
• Ongoing training of customers through meetings and update programs
• Wise and strategic use of social media: this powerful tool is not only for attracting new customers but also for nurturing and managing the ones already reached
• Email marketing: as mentioned, it is crucial to send targeted newsletters 

To understand which customers to retain, it is recommended to use surveys and feedback before and after purchase in order to create a sample useful for analyzing the evolution of your target audience.

Examples of Relationship Marketing

Talking about big brands is pointless in this case. With the tools available now, both large companies and small local businesses can perform perfect relationship marketing. Sure, a dedicated CRM costs money and is an investment, but a survey on Facebook, for instance, costs nothing but time. And what about the barista who routinely asks you "the usual?" That is true relationship marketing.