In simple terms, relationship marketing means taking care of your existing customers and being who your customers are looking for.  It means building the like, know and trust factor so when your competitors come around you have loyal customers who want to stick with you.  This concept seems simple doesn’t it?   It really is a no brainer but too often is not a part of the marketing plan.  It seems so many people and companies put their focus on attracting customers rather than keeping them – a term referred to as offensive marketing.  Now I am all about attracting new customers but it just makes sense to serve your existing customers well. Relationship marketing will make all the difference in the world, not to mention it can save you and your business money.

 What is Relationship marketing all about?

This marketing philosophy means, getting to know your customers and understand their needs.   It also means building relationships with your customers and providing outstanding customer service.  If you want some good examples on businesses doing relationship marketing well there are 3 great books out there you need to check out.  The books are, “The Thank You Economy,” by Gary Vaynerchuk, “Unmarketing” by Scott Stratten and “The Go-Giver” by Bob Burg and John David Mann.

 Why is Relationship Marketing so Powerful?

Why is focusing on your current customers more profitable? Because if you are always putting your money and resources into getting new customers, the customers you do have are not getting the attention they deserve and they are where you current income is coming from. If you choose to not invest in building relationships with your current customers it is up to you but do this at your own peril. Another term for trying to keep customers and increase their loyalty is called defensive marketing. Customers who have already bought something from you are your bread and butter, your key to continued profitability.  You NEED them and can’t afford to lose them.  They’re your assets.  And you value assets and treat them accordingly.

Having loyal customers that stick around is worth a lot to your business.  Keeping existing customers happy is powerful because the cost of keeping an existing customer is only about 10 per cent of the cost of getting a new one.  What is the lesson here?  Make the customers you have a priority, treat them well, build relationships with them and you will have a solid business.