Relationship marketing involves developing long term relationship with customers so that they provide you with ongoing business. An organisation must exceed customer satisfaction expectations to retain and develop long term relationships with customers. Traditional transactional marketing focused on attracting customers for "one off sales" rather than repeat business. However it takes a lot of work to persuade customers to make their first purchase with you, so if you can persuade customers to give you repeat business it will cost you less time and money.
This relationship marketing diagram gets us started by showing how the actions involved in attracting customers, are different to the ones involved in retaining customers for the long term.
Attracting and Retaining Customers
Relationship marketing involves the organisation implementing strategy to attract and retain customers over the long term. Methods used to attract customers include lots of marketing campaigns promoting the firm, its products, its brands and its special (pricing) offers. Methods used to retain customers include good quality products, competitive prices, loyalty cards, a focus on customer satisfaction, excellent customer service and even individual account managers for larger or premium clients.