The Impact of a Relationship Marketing Strategy on Customer Loyalty | Your Business
Abstract- The purpose of this study is to provide an insight into the impact of relationship marketing strategy on customer loyalty of retail bank sector in Pakistan. Relationship marketing focuses on interacting with customers long term, rather than simply trying to make a quick sale. If you focus on learning customers'. Purpose – To examine the impact of relationship marketing strategy on customer loyalty. Design/methodology/approach – A questionnaire derived from previous.
Grocery store club discount cards, airline frequent flier rewards and other customer loyalty programs are examples of relationship marketing strategies. A successful relationship marketing strategy attracts and retains profitable customers.
Mutual Benefit The two main components of relationship marketing -- personalization and regular, periodic communication -- strive to increase customer satisfaction. One of the effects of relationship marketing is mutual benefit. The customer receives something of value through regular, personalized communication.
A business hopefully increases long-term sales and profitability. For example, a grocery store discount card tracks purchase behavior. In exchange for allowing the grocery store access to his spending habits, a customer may receive volume discounts and individual pricing on frequently purchased items.
The additional savings may prompt the customer to shop at the store more often.
Retention A satisfied customer is more likely to remain loyal to a company. According to the "European Journal of Economics, Finance and Administrative Sciences," companies are able to make more money from customers who take advantage of a loyalty program's perks.
Higher customer satisfaction levels tend to increase the cost efficiency of the relationship. Some long-term relationships are not beneficial to a company, regardless of customer satisfaction level. In many cases, the quality of your relationship with the customer is the competitive advantage that enables you to edge out other competitors who may have products and services that are similar or which are selling at lower prices. In relationship sellingthe quality of the trust bond that exists between you and your customers can be so strong that no other competitor can get between you.
The Impact of a Relationship Marketing Strategy on Customer Loyalty | francinebavay.info
Partnering for Profit The second part of building customer loyalty is the partnering for profit approach to business sales. When you deal with a business person, you can be sure of one thing: It is very close to him. It is dear to his heart. And if you come in and talk to him and ask him questions about his business, and look for ways to help him run his business better, the customer is going to warm up to you and want to be associated with you and your company.
This approach to partnering in profit with your customer is a key way to differentiate yourself and to building customer loyalty for the indefinite future.
You should look for ways to help your customer in non-business areas as well. You should position yourself as a person who cares about the success of your customer more than anyone else does, and apparently even more than you care about selling your product or service at the present moment.
Consultative Selling The third key to building customer loyalty is the consulting approach to your dealings with your customer, or what is called consultative selling. When you position yourself as a consultant, you are really positioning yourself to serve your customer as a problem solver. Instead of trying to sell something to your customer, you concentrate all of your efforts and attention on helping your customer solve his problems, achieve his goals, or satisfy his needs.
Customer Satisfaction is Key The key to building customer loyalty is customer satisfaction.
Almost everything you buy is bought after you have heard someone else say that they bought it and were satisfied. Most of your new customers should come from your satisfied existing customers. A referral to a new customer is worth ten times a cold call. It is 16 times easier to sell a satisfied customer something new than it is to sell something to a brand new prospect.