#The Daily Edition-What is Relationship Marketing? How does it influence Your Home Based Business
What is Relationship Marketing? How does it influence Your Home Based Business
Any drawbacks to this approach?
Before committing to a full-on relationship marketing strategy, weigh the benefits and drawbacks.
To begin with, it's quite difficult to determine the impact of a single marketing/customer service effort on sales. Unlike traditional marketing, where you can merely look at your data and see that you spend $x on advertising and make $y in sales, this is a holistic strategy where there is no visible correlation between cause and effect
It's also infamously difficult for some companies to put into practice properly. Take, for example, a toothpaste manufacturer who decides to use relationship marketing to their advantage. They run contests and tweet like crazy, yet they still can't seem to build a strong following. Why? Because their product is seen by the majority of customers as a commodity rather than a way of life. People may be interested in broad characteristics like as flavor, strength, and so on, and the company may build some brand loyalty solely from that, but few people will be rushing to add them on Twitter right away..?
Another drawback is the time, money, and experience required to effectively set up all communication channels and marketing efforts, which is especially true for small businesses. It may be prohibitively expensive to hire full-time employees solely to sit on Twitter all day. This frequently leads to the neglect of one or more channels, reducing the campaign's total efficacy. Knowing your boundaries and not trying to take on more than you can handle are critical in this situation.
Even if you're not a good fit for pure relationship marketing, you should consider using some of the techniques in your overall marketing approach. Using a combination of both approaches is sometimes the best option.
Relationship marketing's best and brightest
When it comes to relationship marketing, some businesses do better than others. As an illustration, consider the following situations: A self-publishing author who uses social media and in-person appearances to stay in touch with her audience. Creates PCs for gamers and runs competitions. Shares tips and gaming news on Twitter. When a baby food manufacturer starts a well-researched blog, it educates parents and provides answers to their queries about nutrition for children.
This hosting provider offers free guides to its customers when their servers are down, publishes high-quality lessons, and does a lot more!
In contrast to transactional marketing, relationship marketing might be a terrific alternative. Relationship marketing is more difficult to master than transactional marketing since it requires more effort to get it right. When it comes to relationship marketing, results may be slower to come through in the short term, but they will be far better.
Combining both approaches works well in many situations. When it comes to relationship marketing techniques, you may "pick and choose" which ones you want to focus on. Relationship marketing benefits commodities the least.
Part 2: Building Relationships with Customers
Knowing how effective relationship marketing can be, you're ready to learn about the specific tactics and methods you can employ.. To be effective with relationship marketing, you'll want to apply as many of these strategies as possible. The more you can use, the better your chances are of success.
In order to successfully establish relationships with consumers, you need to incorporate a few fundamental ideas into the heart of your business:
Check to see if your clients can identify with you. The more complex a corporation becomes, the more difficult it is to get everything just right. Faceless corporations are unwelcome in anyone's life. There should be a human element and a personality to the game as well. Apple is an excellent illustration, particularly when Steve Jobs was in charge. It's great to see a business with character, like this one!
A high-profile role can help clients relate to your firm more easily because they will perceive that a genuine person is behind it. As a result, many smaller companies make the error of attempting to seem larger than they really are in order to gain an advantage over their larger competitors.
On the other end of the spectrum would be companies like the telecom giants. They're faceless and indistinguishable to the common consumer. The ability to relate is critical at all times, but it is critical when things go wrong. Forgiveness will be difficult if people cannot connect with you or your business. It's much easier to forgive someone who has flaws that we can all identify to.
Accept the fact that majority of your customers don't care about you (yet)
Overestimating one's importance to one's consumers is a typical blunder made by businesses of all sizes. As an example, consider the sheer number of companies from which you get goods each year. Even if they're all vying for your attention in some way, you only have time to pay attention to a select few of them. It's easy to detect companies that think they're more important than they actually are to their customers. When a firm decides they must be on social media, that's a wonderful example. Having announced their presence on Facebook, they expect their customers to swarm their page, share tales, and like postings. They're only deluded in their own minds
What are the benefits to the client?
No one will care enough to follow you on Facebook unless you already have a great relationship or offer incentives. Once they have realized this, they may begin to think about how they can become more significant and relevant to their clients.
Relationship marketing has a much better chance of success if you remain humble.
Transparency and openness are virtues to uphold.
This is an area where many huge organizations still fall short. How many times have you heard a business claim to do one thing while doing another? When a corporation gets big, it seems as if they don't care as much about being truthful. Prior to the Internet, this method would have worked. However, now anyone who knows the truth can broadcast it to the entire world in a matter of seconds. However, it appears that some businesses never learn. Using this to your advantage will allow you to gain an advantage over your rivals who are still unaware of this.
Transparency is critical because it fosters a sense of security and mutual respect. Admitting a mistake makes you and your firm more relatable, and it will boost their trust in you in the long run.
Provide better service to customers.
Customer service is the first step in building long-term partnerships that benefit both parties. Only your company's customer service department has the power to convert dissatisfied customers into fierce advocates. It's also a place where a lot of people go astray. When earnings are down, one of the first things to be done is to minimize costs in customer service. In some cases by attempting to streamline and improve efficiency at the expense of user friendliness, and in other cases by offshoring the work to a less expensive location.
Consider the number of times you've needed to get in touch with a large company's customer care department. Most likely, you had to slog through a confusing set of instructions just to be placed on hold for hours (or to never receive a response via email or chat). If you're using a relationship marketing strategy, this is obviously the wrong method. They may save a few dollars in the near term, but they do nothing to help a company's reputation or create relationships with customers.
Put actual people on the front lines instead than robots. Customer support should not be outsourced; instead, trained locals should be hired. Encourage them to create customer relationships by teaching them the previously outlined fundamentals. Boost the authority and responsibilities of customer service agents and representatives. Tell them to be themselves instead of merely reading from a script or doing as they're told. As long as they behave humanely, customers will treat them as such. As a result, they'll be able to connect with you and your business.
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