Advantages & Disadvantages of Customer Relationship Marketing | Your Business
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?. Customer relationship marketing is the process of establishing a solid customer base and consistently appealing to this group. Through this method of marketing . The goal of customer relationship marketing is to develop loyalty between a particular brand or company and a targeted customer base.
14 Pros and Cons of Relationship Marketing - francinebavay.info
It creates personal connections. Although the marketing efforts may connect a customer with a brand, the end result is that customers make personal connections with employees as well.
- 14 Pros and Cons of Relationship Marketing
- The Top 5 Benefits of Relationship Marketing
For local brick and mortar businesses, the managers or owners become a representation of that brand in the community as well.
If a customer interacts with that person, they are also interacting with that brand, which increases the chances of a future purchase. Brands and businesses receive honest insights from invested people. This is because customers become personally invested with the business. They want to see it succeed because that becomes a personal success for them. It creates opportunities to solve problems immediately. When relationship marketing efforts are in place, it gives an organization an out to be able to keep that customer.
This is because customer contacts are at the forefront of this marketing effort. 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. 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. When managers are paying too much attention to the needs of their customers, then they are not paying enough attention to their direct reports or tasks that need to be completed.
This can cause the brand and business to lose on the back end of a successful relationship marketing campaign.
Value propositions change over time, so the marketing efforts need to change too. Promotional incentives such as loyalty discounts and perks help foster a sense of appreciation and reward for repeat business.
Advantages & Disadvantages of Customer Relationship Marketing
Costs Direct marketing is typically more expensive per customer than other forms. Because there is a higher level of personalization, it might be more time-consuming for a small business to communicate with its customers on an individual basis. It might also be difficult to decide what type of customer information to capture and store, since only some of it may prove useful.
A small-business owner and his staff might need to receive training on how to interpret customer data and buying behavior. Security The security issues associated with maintaining sensitive data are a major disadvantage of customer relationship marketing.
Personal customer information is often stored on servers and in computerized databases, which puts the business at risk for liabilities. Some customers will refuse to share some of their information, making it more difficult to take full advantage of the concepts behind customer relationship marketing.
Protecting personal data is costly for businesses because electronic security measures must be executed. In addition, companies need to tell customers how their data is used, when it might be shared and why.