Relationship Marketing is an effective way to improve customer loyalty, this is how it is!
Just as the name suggests, relations marketing is one of the most important marketing strategies to maintain good relations with consumers. However, even though in the fact that this marketing strategy is important, it is often forgotten by entrepreneurs or marketers themselves.
Well, on this occasion, let’s get to know more about relations marketing and various benefits for the company.
What is Relationship Marketing?
At present, there are still many people who think that marketing or marketing activities are a strategy that must focus on the results. So, if implementing a marketing strategy, it is expected to produce results in a few days or a few weeks later.
The marketing strategy does not only have to produce good results for the company. Instead, a result that can be obtained quickly will usually make a free loss. For this reason, a marketing strategy is needed which can provide results in a long period. One of them is by applying relationship marketing.
Reporting from the official Hubspot page, Relationship Marketing is one type of marketing that focuses on developing good relations with customers. So, you must make a deeper and more meaningful relationship with your customers.
Later, it will automatically be able to provide a sense of satisfaction for a long period for each of your customers, while increasing your brand loyalty brand.
Simply put, Relationship Marketing is not a technique that makes every consumer directly buy your product.
Then, how do I apply this marketing strategy? Reporting from Marketing Schools, Relationship Marketing will involve many improvements in the company’s internal fields, such as maximizing corporate customer service services.
In addition, you also have to make a more personal marketing strategy with consumers, such as using Personalized Ads, special promos, and emails.
Understanding Marketing Relationship According to experts
- Kotler and Armstrong
These two experts explain that relations marketing is an attempt to create, maintain and also increase various strong relationships with consumers and other stakeholders.
Sivan says that relations marketing is a very important concept to attract and also maintain consumers in a company.
- Saputra and Ariningsih.
Both of them argue that relationship marketing is a concept of marketing strategy that seeks to establish relationships within a long time with consumers, namely by maintaining strong and mutually beneficial relationships between companies and consumers who can build recurring transactions and make consumer loyalty.
Chan explained that relationship marketing is a concept of introducing every consumer in more detail by creating a two-way communication flow by managing a mutually beneficial relationship between customers and entrepreneurs so that it will make a business entity have a longer framework.
- Wibowo S.
Wibowo S. explained that Relationship Marketing is one of the processes in which the company must build an alliance in a long period with consumers and prospective consumers, and work together to be able to achieve a predetermined goal.
This goal can be fulfilled by understanding consumer needs, making consumers partners, ensuring that every employee can meet customer satisfaction, and also providing good quality to consumers.
Advantages of Marketing Relationships
Based on the explanation above, we can understand together that relations marketing is a long-term marketing strategy. So, what are the advantages of one of these marketing strategies over other marketing strategies?
1. Relatively save more
In an article reported by TechTarget, obtaining new customers is very difficult. There are lots of stages and ideas that you need. Besides that, you also have to spend fewer funds.
But on the other hand, the relationship of Relationship Marketing can make customers promote your product for free, this is commonly called Word of Mouth Marketing. So, they will recommend your product to his relatives, so you can be more economical in terms of marketing and advertising costs.
2. Increase customer loyalty
Reporting from the official Crazy Egg page, Customer Lifetime Value or CLV is the average amount of funds you spend for your customers.
The high clv level illustrates that your customers are loyal and they will constantly buy your product. Well, one of the advantages of relations marketing is to increase this metric.
3. Prevent customer loss
Losing customers or customer churn is a condition in which customers stop using your product. This will certainly be a nightmare for every company.
The high value of the customer churn rate will make it difficult for you to get customers. For this reason, you must avoid this by using a marketing relationship strategy. That way, you can get good customer loyalty within a long time.
4. better understand what the customer likes
Customers who are loyal to your business occur because they like some aspects that are of your business. By having a permanent customer or loyal customer, then you can find out what they like. So, you can continue to develop various aspects in it to get other customers.
5. Easily get feedback
Generally, loyal customers are not stingy to provide feedback or feedback on your business. They will be willing to give criticism and also advice for your product progress or services. On the other hand, you can improve your service, and on the other hand, your customers can enjoy all your products and services so they can continue to grow.
Purpose of Relationship Marketing.
Siversan explained that the main objective of the marketing strategy of this relationship is to improve good relations between the company and consumers by changing or making customers who do not care to be very loyal.
On the other hand, the main purpose of relations marketing is to find the Lifetime Value of every consumer. After this is obtained, then the next objective is to develop the lifetime from each customer group.
After that, the next goal is about how to take advantage of the benefits obtained from the two initial goals to be able to get new customers at a relatively cheaper cost.
This is in line with the statement from Chan, which says that the long-term goal of this strategy is Demin gets a sustainable advantage of two customer groups, namely old customers and new customers.
Concept of Relationship Marketing.
Kotler divides the core concept of relations marketing into six parts, namely:
1. Horizon long-term orientation
Horizon long-term orientation is the main characteristic of relationship marketing. So, the success of the implementation of Relationship Marketing can be seen from how much a consumer is maintained in a good relationship with a brand. So, relations marketing can also be said to be related to the estimation value and also the lifetime value of each consumer.
2. Commitment and fulfillment of promises
To be able to establish good relationships with consumers in a long period, then relations marketing will be more focused on maintaining trust, commitment, and also maintaining integrity by fulfilling a good promise or feedback, and empathy to customers.
3. The share of consumers is not a market share
Relationship Marketing is no longer focused on gaining market share, but on maintaining and maintaining customers.
4. Value throughout the customer’s life
Each brand must be able to identify customers who can potentially be able to establish long-term relationships and then calculate the value of customer life or customer lifetime value to provide benefits for the company.
5. Two-way dialogue
To be able to establish a good relationship according to what is expected, then two-way communication is needed between brands and consumers.
Relationship Marketing can provide a better understanding of the demands and also consumer desires, thus allowing the inventory of products that are following the willingness and customer needs.
Based on the explanation above, we can see that Relationship Marketing is one of the very profitable marketing strategies for business people. So, you can get a fixed customer or loyal customer in a long period.
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