Customer relationship marketing pertains to a specific strategy that leads in acquiring new customers, retaining existing customers, and building brand loyalty and ambassadorship. It also relies upon building deep, meaningful connections with prospects and customers over time, favoring customer lifetime value (LTV) over short-term acquisition gains. It stems from a desire to provide real solutions to customers’ pain points until they achieve “peak customer” and move into brand ambassador territory.
Customer relationship management (CRM), on the other hand, is a strategy for understanding the customers’ needs in order to optimize, often leveraging technology in the form of a CRM system. In other words, CRM is what empowers sales and marketing teams to deliver high-impact customer relationship marketing at scale.
Developing deep relationships with prospects and customers results in measurable benefits beyond initial sales revenue, such as more efficient resource allocation which pertains to the implementation of customer relationship marketing, companies use data to identify high-value prospects and existing customers. They focus their marketing efforts on those who will be least costly in terms of relationship management as well as those who have untapped potential in terms of revenue expansion. Secondly, reduced churn wherein it tackles about the Development high-touch relationships with your customers and continually providing them with the best resources and opportunities to grow their businesses or improve their lives will endear them to your brand, making it less likely they’ll churn. Lastly, improved product/service over time and pertains to encouraging two-way communication by way of customer relationship marketing gives your insight into your customers’ pain points and how future products or services might address them. Not only that, you’ll also gain valuable feedback about your current offerings and how to improve them to better meet the needs of your target market.
Questions;
- What is your own definition of relationship marketing?
- Cite some reasons why relationship marketing leads in building brand loyalty and ambassadorship. Which do you think is the most important reason?
- In your opinion, to what extent have relationship marketing contribute in acquiring new customers and retaining existing customers?
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