Relationship Marketing is one of the most beneficial and important marketing strategies any company can use to enhance their business. It benefits your business, your customers, and provides life time value.
With the use of Relationship Marketing, there will be a surge of economical benefits. It will increase revenues, reduced marketing and administrative costs, and will provide a regular, continuous revenue stream. In addition, there will be some benefits for Customer Behavior. Strong word-of-mouth endorsements which means FREE ADVERTISING! It also brings voluntary performance and mentors to other customer.
Incoperating Relationship Marketing provides a greater value. Value as in a trade-off for consumers between the “give” and “get” component. Customers now have boost of confidence. They now have trust, confidence in your business, and a reduction of anxiety because they know what to expect from you. Customers will become more familiar with the company as a whole. Some companies like to provide special treatments to their loyal customers with deals or prices.
The Customer Lifetime Value (CLV)
CLV considers how much profit an average customer generates over time of the relationships. Factors that influence CLV are:
Length of average lifetime
Sales of other products/services
Referrals generated by customers
Costs associated with serving customers