Relationship Marketing

Relationship marketing is more on building long-term relationships with customers and other enterprises. The company has a strategic orientation, where the relationship with existing clients improved, rather than looking for new clients did. It is specifically designed to meet the needs of individual customers. The main part of the study of the needs of customers and how it changes in different situations.

Relationship marketing applies techniques like marketing, sales, customer service and communication. The relationship is not only strengthened, but his life is prolonged by these strategies. And if the customer realizes the value of the relationship, they came closer. The marketing is not only on building relationships and winning customers for its products and services, but also how to keep them.

A crude form of marketing in 1960 emerged. But organizations still have difficulty, designed to sell products, so a system was developed to find cheap goods to a wider group of customers. Leonard Berry and Jag Sheth originated this marketing, in 1982. It was started participating in B2B markets and industries, the long-term contracts for many years. During the time, various marketing strategies and improved relationship was one of them.

Relationship marketing is applicable where the customer many options on the market for the same product or service and the customer a selection decision is justified. In such kind of market, companies try, their customers through better products and a relatively good service and to keep the achievement of customer loyalty. And once it reaches it’s difficult to do well for competitors in the market. The customer turnover was not addressed, the focus on customer satisfaction. This form of marketing was initially named as defensive marketing. Offensive marketing is the marketing strategy to attract not only new customers but also its revenue by increasing the purchase frequency. This type of marketing focuses on the liberation of dissatisfied customers and acquiring new customers.

According to one study, the cost of keeping an old customer not to run only ten percent of the cost of getting a new customer, which makes sense, about to get new customers in relationship marketing. And another study done by the cross-sectional analysis, says that five percent improved customer retention is responsible for 25 to 85 percent of the profits. Usually high costs incurred in obtaining new customers, so if sufficient number of existing customers is retained, it will be no need for attracting new customers.

Once the customer has come to trust his chances of switching to another company is relatively less, he buys goods in bulk, he buys other supplementary goods and he starts to neglect the average price variation. This will keep the sales figures and an increase in dollar sales. Existing customers will be a living advertisement. If he is satisfied with the company, he will recommend to their friends and acquaintances.

As existing customers familiar with the process, the less time and money they have the process so that less costly for workers and make them feel more satisfied with their jobs to inform. The customers are divided into groups according to their loyalty. This process is known as a money manager of customer loyalty. The groups in ascending order are prospects, customer, client, supporter, advocate and partner.

Advances in computers and the Internet, software for customer relationship management has developed simple. Using this software the tastes, activities, preferences and customer complaints are tracked. Almost all companies have this software in their marketing strategy to the customer and the company benefits.
So the main aim of relationship marketing is relationships with relevant clients, designed to bring are to maintain profit for the company to build. The other advantages are achieved, confidence building and social benefits.