The Value of Relationship Marketing and Customer Retention in Your Funnel
Relationship Marketing is defined on cecausa.com as a “marketing methodology by which a business establishes a relationship with their customers and stakeholders in order to foster customer loyalty and purchases over time.”
This simple, but straightforward definition captures the essence of why relationship marketing has to be an integral part of the strategies implemented by small and micro-businesses owned by soloentrepreneurs. The goal should be to develop long-term relationships as it is over time that business owners will be able to continue to provide value, and as they provide value the often repeated factor – the know,like, and trust factor – will develop.
One of the essential aspects of relationship marketing is the retention of existing customers. When you consider that it takes 5 times as much work and effort to attract new customers than it does to retain them, it makes sense that whether you work offline or online; or a combination of both, that you go beyond what is expected to provide value to your existing customers.
Referrals work. Many of my best customers in my offline business have come from referrals. They came to me because a friend or someone whose opinion they valued referred them to me. They came to me with a preconceived belief that I am a professional who must already have provided to someone they cared about. That person is coming from a different place as opposed to someone I got into my funnel through a ‘cold' connection.
I often wonder about banks and other large organizations that advertise all the wonderful things they will give to new customers. Wouldn't it be more advantageous to offer wonderful prizes and bonuses to their current clients and customers who refer others to them? After all satisfied customers will tell their friends and can influence their decisions.
Keeping your current clients and customers happy and nurturing the relationship will mean that you always keep your funnel full.
I also wonder about companies that give offers to new customers and ignore the old customers. Like you say it is an expensive way to go.
Is it possible that we have become a throw away society…including customers?
I am in negotiation with my phone company right now. They will give new customers a great deal on a phone plan. But they will not give me the same deal, and I have been with them for 4 years.
I would think they would have learned from what ComCast went through. News of bad service can spread like wild fire.
Referrals are gems. They have been sold on you. Now you just need to close the deal.
1It just makes no sense to me when companies treat their loyal customers that way. Having had a customer service business in my home for several Fortune 500 companies, I know that many times it depends on the person you talk with. That’s why it’s so important for companies, large and small, to ensure that their people are trained properly and reflect the image that they want to convey to the world – that is building lasting relationships with their customers.
2My English is not good, but to see the article you write a good feel of your
3I really appreciate your writing style. genuinely a good post! Thanks!
4I’m glad you enjoyed the post and thanks for your comments, Teodoro.
5actually a actually well thought out post. I certainly enjoyed reading it. Thanks
6I really appreciate your writing style. actually a good post! Thanks!
7Good to know you enjoyed the Post, Zula, and thank you.
8Thank you, Lan, and hope you will keep coming back and adding your thoughts. They help to enhance each post.
9It’s good enough for you to read, understand and leave a comment, and I thank you for the effort you made to do so.
10It’s nice to locate great posts like this one. Thank you!
11Thank you for reading and leaving a quick comment.
12actually a wonderful post. I will absolutely be reading this blog more.
13Thank you for a fantastic post. I enjoyed it.
14Awesome post! You’ve a wonderful blog, absolutely the ideal Ive read so far. I will be looking forward to your next entry. Thanks again.
15Thank you, Shaunta. I try to add new posts at least 3 times per week so please visit again, and if I can be of help, please let me know.
16Thank you, Keneth. I visited your blog mentioned in your signature and it’s an article directory. What type of articles do you write?
17I appreciate your visiting and leaving your comments, Todd. And I’d love to hear your thoughts on any of my posts in the future.
18I’m glad I chose to read this one. Nice work!
19Thanks, Naida. I truly believe that building relationships is the foundation of true or heart-based marketing. Yvonne
20I enjoyed reading this blog post! Keep up the excellent work.
21Thanks for leaving your comments, Rosario. What aspect of relationship marketing appeals to you most. I’d love to get your feedback.
22I really appreciate your writing style. This is a great post! Thanks!
23Glad you found the post helpful, Jerrie. Thanks, Yvonne
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