SYBMS: CUSTOMER RELATIONSHIP MANAGEMENT AND RURAL

MANAGEMENT
BHAVYA KOTHARI
ROLL NO. 246
ELECTIVE: MARKETING
Relationship Marketing and CRM: Relationship development strategies

What is Relationship Marketing?

Relationship marketing is a facet of customer relationship management that focuses on

customer loyalty and long-term customer engagement rather than shorter-term goals like
customer acquisition and individual sales. The goal of relationship marketing is to create
strong, even emotional, customer connections to a brand that can lead to ongoing business,
free word-of-mouth promotion and information from customers that can generate leads.

Relationship marketing stands in contrast to the more traditional transactional

marketing approach, which focuses on increasing the number of individual sales. In the
transactional model, the return on customer acquisition cost may be insufficient. A customer
may be convinced to select that brand one time, but without a strong relationship marketing
strategy, the customer may not come back to that brand in the future. While organizations
combine elements of both relationship and transactional marketing, customer relationship
marketing is starting to play a more important role for many companies.

Acquiring new customers can be challenging and costly. Relationship marketing helps retain
customers over the long term, which results in customer loyalty rather than customers
purchase once or infrequently.

Relationship marketing is important for its ability to stay in close contact with customers. By
understanding how customers use a brand’s products and services and observing additional
unmet needs, brands can create new features and offerings to meet those needs, further
strengthening the relationship.

A real-life example of a company following relationship marketing is:

Starbucks realized that marketing involved building relationships and they hurried on to
capitalize on this idea. So how did they do this? 
They tried their best to provide customers with comfort and peace at their stores. You may
remain at a Starbucks store for hours on end without being subject to dirty looks by the
management. 

Their goal has been to satisfy customers as best as they possibly can.
Apart from that, they formed relationships with various customers, businesses, non-profit
organizations, and others that would aid them in achieving a positive change. 
Each of these relationships has proven to be useful as they each bring a certain set of diverse
skills and expertise to the table. 
By fostering these relationships, Starbucks has been able to come up with innovative ideas
that help promote its ideas of ethical sourcing, community involvement, and more.  Starbucks
positioned itself as a forward-thinking coffee shop that strives for a better world. When
customers come in, they are invited to the journey and participate when they purchase a
coffee.

Starbucks remains popular and known because of the various facilities they provide to
customers. Not only do you get free Wi-Fi and the chance to hang out in comfy chairs all day,
but they provide you with cups bearing your name and never forget your order.
Starbucks provides cards that are part of the Starbucks Rewards Loyalty Program. These
cards seem to have caught on well with customers.
Loyalty programs are powerful because they provide incentives for each purchase,
encouraging customers to return. Loyal customers also feel appreciate when they win awards.
The program is also great for data per customer so that brands can evaluate behaviours and
future products.  

Starbucks is not just a business selling fresh cappuccino; it offers people an experience, a
‘third place’ between home and work where you can unwind and relax. Starbucks has stolen
the hearts of their customers with their commitment to forging good relationships and this
seems to have paid off for them.

This was an example of how Starbucks initiated relationship marketing and it wouldn’t be
wrong to say that they have most definitely succeeded at it. 

Now let us look at what relationship development is:

Relationship Development is the action of causing the repetitive connection and evolution
toward accomplishing the common purposes of two or more people.

For example: A new client walks through the door. They take a tour of your business and you
hand them an information packet describing your services. He/she says they’re interested and
want to think about it and they leave.
Now the wrong thing to do would be to sit back and wait for them to call. If you truly want to
develop the relationship, and it’s your complete intention to develop this person into a new
client, you must create the “repetitive connection” to remain fresh in their mind, this can be
done by calling them, following up with them via mails, updating them of promotional
activities taking place etc.

Here are few relationship development strategies that will aid in transforming your company
into a valuable resource:

1. Communicate frequently:

For best results, it's important to communicate frequently and vary the types of messages you
send. Instead of a constant barrage of promotions, sprinkle in helpful newsletters or softer-
sell messages. 
The exact frequency you choose will depend on your industry and even seasonality, but for
many types of businesses, it's possible to combine e-mail, direct mail, phone contact and
face-to-face communication to keep prospects moving through your sales cycle without
burning out on your message.
2. Offer customer rewards:

Customer loyalty or reward programs work well for many types of businesses, from retail to
cruise and travel. The most effective programs offer graduated rewards, so the more
customers spend, the more they earn. This rewards your best, most profitable clients or
customers and cuts down on low-value price switchers-customers who switch from program
to program to get entry-level rewards. 

3. Hold special events: 

With the renewed interest in retaining and up-selling current customers, company-sponsored
special events are returning to the forefront. Any event that allows you and your staff to
interact with your best customers is a good bet, whether it's a springtime golf outing, a
summertime pool party or an early fall barbecue. 

4. Build two-way communication:

When it comes to customer relations, "listening" can be every bit as important as "telling."
Use every tool and opportunity to create interaction, including asking for feedback through
your Web site and e-newsletters, sending customer surveys (online or offline) and providing
online message boards or blogs. Customers who know they're "heard" instantly feel a rapport
and a relationship with your company.

5. Enhance the company’s customer service:

One of the best ways to add value and stand out from the competition is to have superior
customer service. Customers often make choices between parity products and services based
on the perceived "customer experience." This is what they can expect to receive in the way of
support from your company after a sale is closed

6. Launch multicultural programs:

It may be time to add a multilingual component to your marketing program. For example,
you might offer a Spanish-language translation of your Web site or use ethnic print and
broadcast media to reach niche markets. Ethnic audiences will appreciate marketing
communications in their own languages. Bilingual customer service will also go a long way
toward helping your company build relationships with minority groups.

7. Visit the trenches:

For many entrepreneurs, particularly those selling products and services to other businesses,
it's important to go beyond standard sales calls and off-the-shelf marketing tools in order to
build relationships with top customers or clients. There's no better way to really understand
the challenges your customers face and the ways you can help meet them than to occasionally
get out in the trenches.
An example of a company following relationship development strategies is 

 Apple: 
Customer Relationship Management plays a pivotal role in Apple’s growth strategy.
If you’ve ever used an Apple device, you probably had to register it using an Apple ID. An
Apple ID is an account you use to access Apple services like the App Store, Apple Music,
iCloud, iMessage, FaceTime, and more.

These unique IDs synchronize across devices, save music and film preferences, and
provide bespoke recommendations based on what you like. For users, this is convenient. For
Apple, it’s a tool that provides insights on what customers like and it can be used for
effortless, targeted marketing. Apple further hosts several events to mix with their customers,
all their launches have big press announcements and post with they have an exclusive party
for all their loyal customers to come and have a look at their recently launched product.
Furthermore, Apple has their loyalty program where they allow heavy discounts on the
products, they offer to their loyal customers hence building stronger relations with them.
Apple has earned another first place ranking for its laptop customer service when compared
to other tech companies, hence creating a strong differentiation point from all their
competitors. This is how Apple strategizes their consumer relationship development tactics. 

Conclusion:

In conclusion, relationship marketing and relationship development play an extremely

important role in today’s time. Companies have understood the essence of having strong
relations for a long-term goal. Further several companies are also implementing various
marketing techniques in order to develop a one-on-one basis rapport with the customer. 
REFRENCES
https://searchcustomerexperience.techtarget.com/definition/relationship-marketing
https://sendoso.com/blog/the-best-relationship-marketing-strategies-to-grow-your-business/
https://www.entrepreneur.com/article/66228