According to Moller and Wilson, “Relationship marketing is about understanding, creating, and managing exchange relationships between economic partners, manufacturers, service providers, various channel members, and final consumers.” In this article, you will know the methods for relationship marketing.
The various important aspects of relationship marketing are stated below:
- There is a shift in the interaction between suppliers and customers from a transactional contact to a more life relationship-focused bonding.
- Along With providing better customer satisfaction, relationship marketing also targets to improve the time value of certain customer segments
- Along with working in the internal market and building and strengthening relations with it. Relationship marketing also focuses on maintaining relations with the external market, i.e., suppliers, customers, recruitment agencies, etc.
Methods for Relationship Marketing
Different significant methods for relationship marketing are as follows.
1. Customer Satisfaction
The efforts from different activities and functions of an organization will be required to obtain a higher customer satisfaction level. Only relationship managers are not responsible for relationship development.
There are many significant examples of these organizations that successfully get high numbers of recommendations from customers despite having yet to have any effective relationship marketing program. A higher number of repeat sales can be obtained even by firms with poor service standards by charging low prices from customers in a highly competitive market.
2. Trust
Another method used for relationship marketing is getting the customers’ trust. Many marketers have studied the concept of trust deeply, which can be considered a trivial multi-dimensional concept. There are some specific retailers. For example, Boots and John Lewis can gain higher rankings consistently in the different surveys conducted to analyze the customer’s trust in the firms. Thus, it is evident that these firms’ customer loyalty is quite high. It is one of the methods for relationship marketing.
3. Value Addition to a Relationship
There must be some value addition for the customers to have a sustainable relationship. The following methods can be adopted to create some value
i) Making the Reordering Simple
The value in customer relationships may be added by making the reordering or reacquiring of services simple and convenient.
For example, many hotels record the preferences and details of their customers so that they do not need to give the complete information again when they check in in the future.
ii) Providing Privileges to Customers
It includes offering various privileges to those customers who want to have a long-term relationship with the firm. For example, special events are organized by high retailers for their loyal customers, and official magazines are mailed to them free of cost.
iii) Mutual Cooperation to Solve the Problems
Organisations must mutually compete with the customers to help them identify their problems or requirements and then provide solutions. For example, when servicing, the service in charge of the garage may expose some bidders’ issues with the customer’s bike. Thus it helps in adding value to the relationships with customers
4. Developing Barriers to Prevent Exit
The companies can make it very hard for the customers to switch to the competitors, thus ensuring their re-buying. When the supplier provides continuous support, the customers are forced to fall prey to these tactics of the marketers. When industrial suppliers are the sole providers of spare parts of consumable items, a long ongoing relationship with the customers is established so that the customers continuously buy their products.
To receive preferential treatment from the suppliers, many firms negotiate exclusive supply agreements with them. In such situations, customers depend on the suppliers for the short term. These relationships are never lasting (for example, when the machines break down or the exclusive supply contract is renewed), and this is the time when the real loyalty of a customer can be tested.