Relationship Marketing: Everything You Need to Know to Sell More and Build Customer Loyalty
Relationship Marketing is a strategy that helps you talk to your audience at the right time, supporting customer loyalty. Find out how you can put it into practice in this post!
Relationship Marketing is the set of brand building and dissemination strategies, prospecting, loyalty and creating authority in the market. Its main objective is to help companies gain and retain customers, in addition to making them become advocates and promoters of the brand.
Have you ever stopped to think about what is essential to maintaining a good relationship? Being heard and having someone who really cares about what you need are some of the factors we can name. And the brands that propose to do this work with their customers are practically applying the principles of Relationship Marketing.
In the midst of the large amount of information we receive every day, have you ever had a very positive experience with a brand to the point of becoming a loyal customer of the product and being a true disseminator of the product?
If you have had this experience in person, or if you have witnessed it in some way, you will certainly not forget. After all, who doesn’t like to be treated well and feel special?
But why do some companies go to the trouble of creating these experiences? Is it just to retain customers? And are these actions worth it financially? The answer to all these questions goes through the same strategy: Relationship Marketing.
This is a strategy that goes beyond an action to get more customers: it involves brand building, customer loyalty and creation of authority in the market.
So, let’s talk now about everything you need to know about Relationship Marketing, showing what it’s for, how to apply it in 9 steps and if it’s worth it for your company. Check out!
What is Relationship Marketing?
When we think about what Relationship Marketing is, we can say that it encompasses strategies such as:
- Brand building and dissemination;
- Loyalty and creation of authority in the market;
- Contact with the public in different Digital Marketing and communication channels;
- Close communication of each person with the Ideal Customer Profile (ICP);
- Marketing automation with your contacts.
The main objective of making this relationship is to win and retain customers, in addition to making them become defenders of the brand.
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 for?
As park view villas said, Relationship Marketing is about much more than increasing sales. Therefore, he is not limited to just winning customers, but new fans. However, this is a two-way street: to achieve this result, you need to offer something unique that your customer can’t get anywhere else.
It serves to create an ongoing and progressive relationship with each person. This can be done in a variety of ways, but it even works for a customer of your basic product or service to evolve into more advanced options for your solution. As you can see, this is a medium and long term strategy.
More than generating new revenue, Relationship Marketing brings the customer closer to the company. This benefits not only the customer – which gains faster and more personalized responses – but also the company, which receives feedback and has the possibility to learn from its audience to continuously improve its solutions.
Investing in Relationship Marketing actions, the public can get closer to your company and learn more about what you do and the solutions you offer. Thus, the chances of realizing the value of your solution and buying it become much greater.
In addition, having a good experience with your company, it is likely that this audience will want to share this positive experience with others, generating a positive “snowball” effect, which influences the acquisition of new customers.
Why is it important to maintain the relationship?
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 market? What is the problem with the traditional model?
The truth is that Relationship Marketing is a complementary strategy to many others that you can use. However, it’s essential to know that it contrasts with the more traditional marketing approach, which focuses on publicizing something without worrying too much about the timing of your prospect.
In the model that does not value the relationship, the customer may not buy something from the brand in the future or may even give up on a purchase. Meanwhile, organizations that combine elements of traditional and relationship marketing are able to place the customer in the most important role for the company’s success.
A good relationship may be the missing factor when deciding on a purchase
Making the customer think about your company when the moment of purchase arrives must be the central objective of the entire Marketing team.
But there are several other advantages to investing in this initiative. The first is that maintaining the relationship with your customer, even with 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 missing factor at the time of each customer’s purchase decision, being able to generate not only more purchases by the same customer, but also new referrals.
Another important point is that, by maintaining the 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’s clearer what impact Relationship Marketing can generate in your operation, let’s learn about 3 more benefits that this strategy can provide for any company.
1. Increase LTV
Anyone who works with solutions in the subscription model knows that LTV (Lifetime Value) is the metric that helps to understand the importance of keeping the customer for as long as possible. Only in this way is it possible for it to deliver a value greater than what was spent on its acquisition.
Therefore, the relationship strategy helps to extend the lifetime value of the customer. You’ll be able to gain loyal customers, which leads to new purchases and a higher LTV.
In addition, loyal customers are likely to become brand ambassadors, recommending products and services to friends and family, helping to lower their CAC.
2. Reduction in marketing and advertising expenses
Spending on marketing and advertising to gain new customers can decrease with relationship-focused work. Because customers tell each other about a brand’s products and services, it’s common to have an organic drive in sales.
Brands that focus on this marketing model spend little or no money on paid media marketing and advertising.
3. Greater alignment of communication around the customer
Organizations that emphasize Relationship Marketing have a stronger organizational alignment around delivering an exceptional customer experience. In this case, all teams in the company must work together to bring satisfied and happy customers in the long term.
How to apply Relationship Marketing?
Okay, we already know what Relationship Marketing is and what it’s for. But how can we apply it in practice?
There are countless ways to do this, and fortunately the digital environment has made things easier for companies. After all, it allows them to get even closer to the audience!
Just to give you an example, you can rely on Digital Marketing, Inbound Marketing and Content Marketing methodologies for this. When it comes to tools, you can use blog, social media and Email Marketing, in addition to offline actions – such as sending gifts, for example.
Next, we’ll talk a little more about ways to apply Relationship Marketing through a sequence of 9 steps. Check out!
Step 1: Everything starts from the data
Companies must first analyze their customers’ demographic and historical data to understand who they are, what they buy, and how to relate to them over the long term.
It’s also important to understand why a consumer returns and makes a new purchase. Without looking at the data, we can think that customers are returning because the company has a good relationship, but perhaps they are going back to consuming because the company delivers a product quickly or because of the below-market price.
Analyzing this information and the nature of customer loyalty is the best method to develop an effective Relationship Marketing plan from the start.
Step 2: Know Your Audience and Build Ideal Customer Profiles
With this diverse customer data, the company can begin to segment its Leads and develop unique marketing strategies for each group. A customer who appreciates the value of a product, for example, has different characteristics from those who had a remarkable experience in service.
That means it’s no use wanting to do Relationship Marketing if you don’t know your audience. Without having mapped out which ideal profile he needs to meet, how are you going to offer the benefits he wants to generate a truly differentiated experience?
Therefore, it is essential that you create your company’s personas, that is, the representations of the best customers. Thus, you will focus your relationship with this target audience, aiming to attract them to become a customer.
By attracting this audience and getting some strategic information about it, you will be able to generate a base of contacts to establish an effective relationship. It is important that this database is always updated so that you can get your communication actions right.
It is based on these profiles that you should focus on the most robust Relationship Marketing actions: create a personalized follow-up and think of ways to bring your contact with them.
From there, you can already start thinking about the tools and formats you will use to narrow the Relationship Marketing strategies with them. That’s what we’ll know in the next steps!
Step 3: Start Relationship Marketing with Email Marketing
One of the most powerful tools in Relationship Marketing is Email Marketing. This is because it is highly customizable and you can use it for various actions, such as:
- Create a close relationship;
- Congratulate the customer on important dates in their life, such as birthdays, weddings, among others;
- Offer relevant content that really creates value for your customer;
- Send brand building and consolidation campaigns, showing how your company plays a relevant role in your customer’s life;
- Offer special promotions, discounts, bonuses, gifts and other advantages, highlighting the benefit of being a customer of your company;
- After-sales actions, with satisfaction surveys to find out customers’ opinions and suggestions for your company;
- Offer new products, encouraging cross-selling and upselling.
Step 4: Relationship Marketing with Social Networks
The social networks have become a powerful tool to bring customers and companies. Therefore, it is important that they know how to use this medium well to relate to customers.
Presence in major networks – such as Facebook, LinkedIn, Instagram and Twitter – is no longer a corporate differential, but a basic Relationship Marketing strategy.
On the one hand, they are a huge opportunity for companies to spread their message to an ever-growing audience and, with that, conquer new audiences.
Furthermore, as communication takes place almost immediately, their actions on social networks often have very short-term repercussions.
Well-structured strategies can take a company to a whole new level in relation to its customers. But thoughtless actions or delays in responding, on the other hand, can completely undermine a company’s image vis-à-vis customers and potential customers.
Should the focus on social media be content?
As with Email Marketing, social networks are a very useful tool for dissemination and content production. But it cannot be just any content: it must be qualified and personalized so that your customers feel unique. Don’t forget your personas!
On social media, you can also address different types of content:
- product offerings;
- Services and promotions;
- Materials that educate and generate value;
- Brand consolidation;
- Satisfaction surveys, among others.
But it’s important that you pay attention to the type of social network you’re on. Creating the same type of relationship in all of them is the same thing as not considering your persona: mass communication, which is likely to have little engagement.
For example: Facebook and LinkedIn are widely used spaces to work with content offer. More visual networks – such as Integra and Interest – are very effective for brand building.
Twitter works very well as a kind of SAC 2.0, a quick way to talk to your customers and potential customers about questions and complaints.
Step 5: Relationship Marketing with Marketing Automation
To scale your relationship work, even in a personalized way, you need to continue with the Marketing Automation work.
Through this strategy, you create a structure for sending emails and other important items for the relationship flow. They can be done automatically for a whole segment of Leads and customers.
The automatic submission of content that is aligned with the needs of each persona helps the customer to be successful, assisting with frequent questions.
Working with automation means that you will talk to the right person, at the right time and in the best communication channel for them. This is a way of taking a step forward, generating value and proposing to deliver something that will solve the problem that each person has at that moment.
The best way to do this is using RD Station Marketing. The leading all-in-one Marketing Automation tool in Latin America has features for all stages of the relationship with Leads and customers. From editing the contact capture page to analyzing your marketing strategy data, going through the creation of personalized email automations, you have everything to gain in productivity and make more sales in one software.