In other words, Relationship Marketing matters most in today’s digital world because people now understand that relationship alone will survive – not sales talk. But why has it taken so many years for the marketers to understand this simple equation? The reasons are simple.
To begin with, competition was not as gruesome as it is now; companies in the earlier days thought themselves to be overlords, treating customers as inferior creatures that are bound to buy whatever they produce and finally brands were considered as something everlasting that would continue shedding stardust for centuries. But alas, newer technology and multiple products eventually eradicated staunch trademarks like ‘Mobiloil’, His Master’s Voice or HMV gramophone records, etc that once gained worldwide reputation, crossing barriers of countries and continents..
Relationship marketing, to be precise, was earlier conceptualized as a type of marketing, originating from direct response marketing campaigns where most emphasis was given to ‘customer retention and satisfaction’ instead of boosting sales. However, with the development of the internet and mobile platforms, this type of marketing has continued to evolve while technology has opened up more collaborative and social communication channels than ever before.
At the same time, it entails tools for furthering relationships with customers – often crossing demographics and established customer service data. What is more, it overflows to include inbound marketing efforts, which incidentally is a conglomeration of search optimization and strategic content plus Social Media, PR and application development.
What researchers reveal It is claimed by Reichheld and Sasser[8] that a 5% improvement in customer retention can cause an increase in profitability of between 25 and 85 percent (in terms of net present value) depending on the industry. However Carrol, P. and Reichheld, F.[9] dispute these calculations, claiming they result from faulty cross-sectional analysis. Research by John Fleming and Jim Asplund indicates that engaged customers generate 1.7 times more revenue than normal customers, while having engaged employees and engaged customers returns a revenue gain of 3.4 times the norm.
How customer relationship is built online through the use of social media Here are a few ideas on this controversial topic Respond to a need If your customers want a problem to be solved by you (you are lucky to be in that position), use your social media channel to solve the problem as an authority while sharing it with your followers. When confronted with similar problems or questions over and over again, post a blog for their general satisfaction. Persuade participation Do not hesitate to ask your audience about what they prefer to know about.
Then provide the information, through a video if possible and then persuade them to leave feedbacks, comments and questions. Make it a routine to meet their queries on a regular basis to earn their trust.
Be visual Visual content across social media platforms is great-visuals are memorable, hard to ignore and your audience will enjoy sharing them with others in their networks. And in an industry where the way a product looks and feels is part of the decision making process, visuals can help showcase the great brands and products you deliver. What’s more? Google loves visuals and they can help you move up the SEO (search engine optimization) rankings.
Be a good listener The key to great communication, as you must have known, is listening. Listen to what your audience has to say. Even if you’re not online, I guarantee your customers are-and they are probably talking about you. Audiences are looking for a way to interact with you, not just hear from you. In fact, a recent Oracle study found that people expect a personal response to a Twitter question within two hours and a Facebook question within 24 hours.
The best way to address this is by having the person who makes your regular social media posts check each site hourly and respond as needed. A thoughtful, timely response means a lot to customers. In addition, set parameters for tracking and analyzing the conversations happening online about you, your brand and your industry-you could come across some eye-opening ideas