14 Pros and Cons of Relationship Marketing - teenbooks.info
It seems like everyone's talking about the benefits of relationship marketing. But just what does it mean, and how can it help your business?. Disadvantages of Relationship Marketing Today's Post: Part 2 Relationship Marketing is a Part 1: Advantages of Relationship Marketing. The goal of customer relationship marketing is to develop loyalty between a particular brand or company and a targeted customer base.
However, there are some disadvantages to customer relationship marketing, so it's best to exercise balance when implementing this form of promotion for your business.
You'll Increase Your Profits With customer relationship marketing, you've already established your main demographic. This means you can concentrate your promotional efforts on customers who have already proven their loyalty to your company. This results in significant profit for your company, since you can market to clients based on the type of items they purchase most from your company. Loyal customers are also more likely to go for the up-sells that you promote, or to try new products that your company has introduced, which also results in more of a profit for your business.
You'll Save Money When you know who you should market to, you don't have to spend extra advertising dollars marketing to individuals who may not be interested in your company.
5 Big Benefits of Relationship Marketing | Fireworx
From customer service lines to Twitter accounts to in-person visits, the ability to effectively handle a problem and then resolve it in a positive way contributes to the marketing efforts. There are multiple avenues of relationship building available today. Brands and businesses today have advantages that have never before been seen in our world.
With social media, a brand can make an immediate 1-on-1 impact on customers. They can use their social media accounts and pages to keep reinforcing the value propositions that are offered. Even a brief email, which takes seconds to write, can have a long-lasting influence on a customer.
This is combined with the in-person contacts, direct mail contacts, and other forms of communication that are offered to everyone today. There are even under-utilized communication methods that can be used to advance a marketing campaign like this.
Skype, FaceTime, and SnapChat are just three examples where a business can reach out with a representative to reinforce the value of their brand. What Are the Cons of Relationship Marketing?
New customers are treated as a secondary commodity.
5 Big Benefits of Relationship Marketing
You want to retain your best customers, but you also sometimes need new customers to meet your budget goals. With relationship marketing, the focus of a brand and business is placed first on retaining and supporting the current customer base. This causes new customers to be overlooked and possibly ignored. Negative information can ruin a relationship marketing campaign. Because of the amount of sharing that happens today, all it takes is one negative experience that gets shared with others to cause this type of marketing to fail.
Many consumers are focused on immediate, short-term values. It takes time for relationship marketing to be effective.
Many customers feel like a brand and business which wants a relationship with them should be able to make time for them. This means there will be customers that want to receive direct answers from employees or representatives instead of finding the information on their own. Not only does it take time to develop the relationship, but many workers will also be asked to increase their 1-on-1 time commitments to continue the process.
Relationships can become to close sometimes. Having a strong relationship with a customer is a good thing. Having a relationship that becomes close to intimate, however, can be a bad thing. For example, a customer who is unprofitable for the company might become a long-term account once he is encouraged to buy more of the same product.
Communication Communication and customer satisfaction tend to increase when customer relationship marketing is used, according to Phillip Kotler and Kevin Lane Keller, authors of the book "Marketing Management.
Databases and customer relationship management software help companies keep track of who is buying what and how often. There is more of a two-way interaction between the company and the person who wishes to make a purchase. Promotional incentives such as loyalty discounts and perks help foster a sense of appreciation and reward for repeat business. Costs Direct marketing is typically more expensive per customer than other forms.