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 used to focus on attracting customers for "one off sales" rather than repeat business. It takes a lot of work to persuade customers to make their first purchase with you, but if you can persuade customers to give you repeat business it will cost you less money and time. So it makes sense to keep existing customers happy!
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.
Customer Satisfaction Monitoring
Long term customer relationships require customer satisfaction even when things do not go to plan. So firms will continuously monitor how their customers are feeling about the service they have provided. For example Travelodge email customers a feedback form after they have spend the night in one of their hotels. Methods used to monitor customer satisfaction include:
Online surveys and
General customer comments.
After each monitoring session a firm will review the results and plan how they can rectify areas causing dissatisfaction. They will also look at how the can build on areas/things that are making customers happy.
It is important to monitor customer satisfaction regularly as customer wants and needs continuously change. Adapting and changing to reflect customer requirements will help the organisation develop the long term relationship it wants with customers.