Relationship marketing is the main idea behind the growth and success of every business. It is because people would purchase things from those businesses and companies that they have a relationship with. They develop customer relationships by satisfying their needs, retaining, and recognizing them. Today, we’ll discuss the relationship marketing advantages and disadvantages.
Relationship Marketing Advantages
Some of the pros and advantages of relationship marketing are as follows;
One of the main benefits of RM is that it helps you to establish repetitive customers of your business or brand. They would increase the profitability of your business. According to an estimate, approximately 25% to 40% of the revenue of stable businesses and companies comes from the repetitive customers
Growth With Less Investment
All you have to do in RM is to be humble and kind to customers and give them discounts and gifts, and they would increase your company’s growth and profitability. For this purpose, you need to inform your current and existing customers about your upcoming offers.
Probability of Going Viral
If the customer has got a good and positive experience at your store, they would leave a positive review. A series of positive reviews would impact the minds of new customers. In other words, it leaves a positive impression and causes social media sharing and word-of-mouth marketing.
RM allows businesses and companies to develop a personal connection with their customers; ultimately they would have a personal connection with your staff as well. In the physical store, managers, employees, and sales representatives develop a personal connection with customers. It amplifies the probability that they would buy things from you.
The other significant benefit of RM is that when companies and customers connect with other, they get true feedback and a real insight into customers. It means customers show interest in the company they want its products and services better and they want their brand to succeed.
Instant Resolving Problems
No company or business is perfect, they all make products and services that fail with the passage of time. RM allows businesses and companies to develop a connection with customers and they would keep their contacts and approach them with their latest upcoming product or service.
Various Sources of Relationship Building
We are living in the world of technology, the internet, and digitalization. They all help businesses and companies to develop a relationship with customers through various sources and media channels. It could be through social media platforms, in-person contact in the physical stores, emailing, post letters, and second-person contact.
When businesses and companies develop a relationship with customers and make them informed about the product or service. The personal connection and relationship with customers would compel them to buy things from you. Ultimately, it would increase the company’s sales and revenue.
Product Ad Method
The positive feedback from customers and word-of-mouth marketing would serve as an advertisement campaign for your product or service. You don’t have to spend a lot of investment on marketing and advertisement; they would do it for you.
RM helps businesses and companies to be familiar with their customers and understand their market. Knowing the needs and wishes of customers is the first step in understanding the market. However, the customer market comprises various elements like demands in various seasons, supply of labor, supply of raw materials, production of supplies, and other elements. RM allows you to beware of all of them.
Relationship Marketing Disadvantages
Some of the cons of disadvantages of relationship marketing are as follows;
2nd Class Treatment of New Customers
In the RM, the focus of salesmen and company representative is on the current and existing customers and treating them with care. Whereas, the new customers would feel left out because no one gives them any importance. All the focus of the sales staff is on the existing and loyal customers of the company.
Just like positive feedback, negative reviews, false rumors, and bad memes spread faster than positive feedback. It would not only push away many new customers, but it would also jeopardize the relationship you have with your existing customers. They start to wonder and question the loyalty and quality you are offering.
Building a relationship and maintaining it over a period of time is a highly time-consuming activity. The sales staff should have sufficient experience and people expertise to deal with the old and loyal customers of the company. But it takes time to give them training and maintain the relationship with them.
To Closeness Isn’t Good
Sometimes, customers become friends with the sales staff. In such a case, the employees of the company put over-emphasis on satisfying the needs and wishes of customers, rather than managing and looking after the business. That’s why closeness with customers of the company is not good.
The needs, demands, and preferences of customers change over time. When they would change, it would jeopardize the relationship you have with your customers. You can’t satisfy the needs of customers with your one offer, you have to change with their changing preferences.
Require Culture Change
Without familiarizing yourself with the particular culture, you can’t establish a relationship with your target customers. When you are dealing with different cultures with one product, then it is not easy to adjust your product and storyline across different cultures.
Loyal customers are highly beneficial for your business, but they would make demands from you like discounts, gifts, and free trials. But your business is not always in a good position financially to fulfill their demands. However, when you don’t give them what they want, then it would jeopardize your relationship.
Developing and maintaining a relationship with your customers is a very subtle art, and only skilled professionals could do it. You have to provide them training annually and semi-annually, and it is highly expensive, and not all businesses could afford it.
In the mask of relationship marketing, sometimes sales staff sends them so many promotional offers and marketing materials that it fills their desire.
Conclusion: Relationship Marketing Advantages and Disadvantages
After an in-depth study of relationship marketing advantages and disadvantages; we have realized that relationship marketing is good for your business. If you’re developing an RM campaign, then you should keep in mind its pros and cons.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.