I’ve received several inquiries regarding relationship marketing in my inbox, and I understand why.
More than ever before, this concept has become part of our approach to marketing, simply because of a shift in consumer behavior toward businesses.
But what does the relationship in this type of marketing consist of, and why has it become a priority for many companies?
Let’s take a closer look in this post.
Transaction marketing vs. relationship marketing
Broadly speaking, there are two main approaches to marketing – transaction-based and relationship-based.
Transaction marketing
For many years, transaction-based marketing has been the most common approach, as the market was not as saturated as it is now.
Thus, businesses could focus solely on getting customers into the store to facilitate their purchases.
Customer service was not a primary focus because companies, for years, had monopolies on certain products and could always count on customers coming through the door.
The goal of transaction marketing, in short, is to facilitate purchases within a short time frame, generating immediate sales and revenue.
This marketing approach targets a customer group ready to make their purchase immediately, without needing a long decision-making process or consulting customer service beforehand.
Relationship marketing
The goal of relationship marketing stands in contrast to this approach.
Here, the focus is on building long-term relationships with consumers to foster customer loyalty, which leads to repeat purchases from the business.
This approach caters to a customer group that needs time to consider their purchase and typically compares products from multiple vendors to get the best quality for the price.
In relationship marketing, the focus is on guiding the customer through their entire journey; from considering the purchase to post-purchase support.
What is the purpose of relationship marketing?
The purpose of building a relationship with consumers that ensures brand loyalty is that, in most cases, it is more profitable to build and maintain relationships with existing customers than to constantly attract new customers.
In a saturated market, it’s essential to differentiate yourself as a business and offer positive interactions with consumers.
There are no longer just a handful of companies with monopolies on products as mentioned earlier.
Consumers increasingly value the service that accompanies a product purchase, and often, this is what determines whether a customer chooses to stay with your business or look for the desired product elsewhere.
Building relationships across multiple channels
Today’s market heavily relies on multiple channels, including social media, email, apps, and more. Businesses today are wise to aim for a seamless experience across the various channels they operate.
This is where the concept of an omnichannel business strategy comes into play, aiming to create a cohesive experience for consumers, whether they’re on the company website, Instagram profile, or app.
Consumers should feel a personal connection is being created, and their inquiries are addressed, no matter what platform they’re on.
In other words, contact and relationship building with customers should be a goal across all of a company’s channels, as earning their loyalty and subsequent positive recommendations among consumers will pay off.
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