{"id":7576,"date":"2018-10-05T10:22:44","date_gmt":"2018-10-05T14:22:44","guid":{"rendered":"https:\/\/referralrock.com\/blog\/?p=7576"},"modified":"2024-03-20T16:09:07","modified_gmt":"2024-03-20T20:09:07","slug":"relationship-marketing","status":"publish","type":"post","link":"https:\/\/referralrock.com\/blog\/relationship-marketing\/","title":{"rendered":"Relationship Marketing: The Ultimate Guide"},"content":{"rendered":"\n<style>\nblockquote {\r\n    border-left: 5px solid #0088cc;\r\n    margin: 0 0 1.5em;\r\n\tfont-style: normal;\r\n    position: relative;\r\n\tpadding: 0px 0px 0px 30px;\t\r\n}\r\nul {\r\n\tfont-size: 18px;\t\r\n}\r\nli {\r\n    margin-bottom: 15px;\r\n}\n<\/style>\n<blockquote><h3 style=\"font-size:22px\">Key takeaways<\/h3>\r\n<ul>\r\n\t<li>Relationship marketing is a marketing strategy that emphasizes customer retention, satisfaction, and lifetime value.<\/li>\r\n\t<li>Examples of relationship marketing are multichannel marketing, holiday greetings, personalized communications, and more.<\/li>\r\n\t<li>Addressing customer feedback, making customer service easier, and using loyalty programs are all strategies for relationship marketing.<\/li>\r\n<\/ul>\t\r\n\t\r\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">What is relationship marketing, and why is it so important?<\/span><a href=\"https:\/\/referralrock.com\/blog\/advocate-ambassador-influencer-and-relationship-marketing-explained\/\"> <span style=\"font-weight: 400;\">Relationship marketing<\/span><\/a><span style=\"font-weight: 400;\"> is a<\/span><a href=\"https:\/\/referralrock.com\/blog\/types-of-marketing\/\"> <span style=\"font-weight: 400;\">marketing strategy<\/span><\/a><span style=\"font-weight: 400;\"> that emphasizes customer retention, satisfaction, and lifetime value.<\/span><\/p>\n<p>Imagine you\u2019ve worked hard for new customers. How do you keep them happy and wanting to come back? And how do you get them to tell all their friends about you? Relationship marketing, in a nutshell, is building the relationship between you and the customer. Here&#8217;s how to apply relationship marketing to strengthen your own business.<\/p>\n<h2>What is relationship marketing?<\/h2>\n<p>Relationship marketing is marketing designed to foster customer loyalty, interaction, and long-term customer engagement.<\/p>\n<p>Instead of focusing on short-term goals like customer acquisition and individual sales, relationship marketing aims at developing strong emotional connections between customers and a brand.<\/p>\n<p>Relationship marketing achieves this by providing them with information directly suited to their needs and interests, and by promoting open communication.<\/p>\n<h3>Why is relationship marketing vital?<\/h3>\n<p>For your business to succeed, you\u2019ll need to foster emotional connections with your customers, both new and old.<\/p>\n<p>Imagine if you stopped getting repeat customers, or if the customers who did come back never shared you with friends. You\u2019d be stuck constantly fighting to get people to remember you.<\/p>\n<p>Relationship marketing works because the connections it builds<a href=\"https:\/\/referralrock.com\/blog\/what-is-customer-loyalty\/\"> encourage customer loyalty<\/a> and foster<a href=\"https:\/\/referralrock.com\/blog\/word-of-mouth-marketing\/\"> word-of-mouth sharing.<\/a><\/p>\n<p>These statistics further prove the power of relationship marketing.<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fully engaged customers bring in<\/span><a href=\"https:\/\/www.notifyvisitors.com\/pb\/blog\/customer-engagement-statistics\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> 37% higher revenue and sales<\/span><\/a><span style=\"font-weight: 400;\"> than actively disengaged customers. They also spend<\/span><a href=\"https:\/\/www.gallup.com\/services\/169331\/customer-engagement.aspx?g_source=link_wwwv9&amp;g_campaign=item_236201&amp;g_medium=copy\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">over 23% more,<\/span><\/a><span style=\"font-weight: 400;\"> on average.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increasing customer retention rates by just 5%<\/span><a href=\"https:\/\/www.businessnewsdaily.com\/16027-customer-retention-rate.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> increases profits by 25%<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Meanwhile, it\u2019s 5\u201325 times more expensive to gain a new customer than retain an existing one.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">20% of your current customers<\/span><a href=\"https:\/\/www.investopedia.com\/terms\/1\/80-20-rule.asp#:~:text=The%20rule%20is%20often%20used,and%20market%20specifically%20to%20them.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> will account for 80%<\/span><\/a><span style=\"font-weight: 400;\"> of your company\u2019s future revenue.<\/span><\/li>\n<\/ul>\n<h2>Advantages of a relationship marketing strategy<\/h2>\n<p>Relationship marketing powerfully creates value, markets to the customers you&#8217;ve already won over, and encourages customer engagement. Let&#8217;s break down these advantages of relationship marketing strategies in detail.<\/p>\n<h3>Creates value<\/h3>\n<p>With relationship marketing, your goal is not to lower pricing structures but to create valued customers based on experience. And this strategy works. According to <a href=\"https:\/\/emplifi.io\/resources\/blog\/customer-experience-statistics\" target=\"_blank\" rel=\"noopener\">Emplify<\/a>, 61% of consumers will pay at least 5% more if they know they\u2019ll get a good customer experience.<\/p>\n<h3>Markets to current customers and fosters engagement<\/h3>\n<p>Why should you prioritize your existing customers\u2019 experience?<\/p>\n<p>Whether your business offers a one-time purchase or subscription service, Zendesk claims that<a href=\"https:\/\/www.zendesk.com\/resources\/the-impact-of-customer-service\/\" target=\"_blank\" rel=\"noopener\"> 39% of consumers avoid vendors<\/a> for over two years after having a negative experience. This emphasizes the importance of creating a lasting, positive impression with your customer experience.<\/p>\n<dl>\n<dt><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2018\/10\/image4.png\" alt=\"relationship marketing start with your customers by zendesk\" width=\"550\" height=\"219\" title=\"\"><\/dt>\n<dt><\/dt>\n<\/dl>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.zendesk.com\/blog\/the-impact-of-customer-service\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n<p>Successfully engaged customers represent an average 23% premium in share of wallet, profitability, revenue, and relationship growth compared to average customers, according to <a href=\"https:\/\/www.proprofschat.com\/blog\/customer-engagement-statistics\/#:~:text=Successfully%20engaged%20customers%20represent%20an,the%20benefits%20of%20customer%20engagement.\" target=\"_blank\" rel=\"noopener\">Gallup<\/a>. It takes a lot more to engage a customer, but taking the time and effort to create engaged customers ends up paying off the most.<\/p>\n<p>Engaged customers are:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">5 times as likely to repurchase and create strong customer lifetime value (CLV)<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">5 times as likely to forgive negative experiences<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">4 times as likely to refer friends and family to a business<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">7 times as likely to try a new offering<\/li>\n<\/ul>\n<p>Relationship marketing helps your customers succeed, creates an excellent<a href=\"https:\/\/landbot.io\/blog\/how-to-collect-customer-feedback-with-chatbot-surveys\/\" target=\"_blank\" rel=\"noopener\"> opportunity for receiving feedback<\/a> or reviews, and gives you a competitive advantage.<\/p>\n<p>Understanding the different<a href=\"https:\/\/referralrock.com\/blog\/examples-of-different-levels-of-relationship-marketing\/\"> levels of relationship marketing<\/a> can help you identify where your business currently exists and what you need to do to raise it to the next level.<\/p>\n<h2 id=\"Getting In The Relationship Marketing Mindset\">Getting in the relationship marketing mindset<\/h2>\n<p><span style=\"font-weight: 400;\">To shift your company\u2019s strategies and priorities to building relationships, it\u2019s important to start by cultivating the right mindset. <\/span><\/p>\n<h3 id=\"Mindset Idea 1: Thinking In the Customer's Shoes\">Mindset idea 1: Step into the customer&#8217;s shoes<\/h3>\n<p><span style=\"font-weight: 400;\">Your business might think it knows almost everything about your product or services, but you don\u2019t always know how your customers feel. Viewing things from the customer\u2019s perspective can help you get a better understanding of your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A simple way to do this is pretending to be the customer yourself and imagining you are unfamiliar with the product. Think of how you would react if someone messed up your order or if a service you bought didn\u2019t turn out as planned. Use this logic to help you sympathize with the customer, and then provide solutions. In the majority of cases, adopting this<\/span><a href=\"https:\/\/referralrock.com\/blog\/customer-centric\/\"> <span style=\"font-weight: 400;\">customer-centric strategy<\/span><\/a><span style=\"font-weight: 400;\"> will end up with a better product and approach to the market.<\/span><\/p>\n<h3 id=\"Mindset Idea 2 - Customer Situation Checklists\">Mindset idea 2: Create customer situation checklists<\/h3>\n<p><span style=\"font-weight: 400;\">You may have a checklist, spiel, or procedure you use for each sale or point of contact with a customer. One good checklist to have in place is a<\/span><a href=\"https:\/\/www.groovehq.com\/support\/dealing-with-unhappy-customers\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">customer incident checklist<\/span><\/a><span style=\"font-weight: 400;\"> (see one of the checklists below). This can make handling a difficult customer situation much easier.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2017\/11\/de-escalation-checklist-300x152.png\" alt=\"An example of a customer incident checklist\" width=\"377\" height=\"191\" title=\"\"><\/p>\n<p>The incident checklist doesn&#8217;t have to be long. Here are a few items to add to your checklist:<\/p>\n<ol>\n<li><strong>Listen first. Don\u2019t react.<\/strong> Instead of disregarding the customer\u2019s concerns, listen to them and address them. Understand why the customer is unhappy and what they want. Listening is the quickest way to turn around a negative customer experience.<\/li>\n<li><strong>Restate their problem, and tell them you understand it. <\/strong>This doesn\u2019t mean you have to agree. It simply lets customers know you hear what they are saying.<\/li>\n<li><strong>Figure out where the problem originated. <\/strong>Let them know if your team made a mistake or if there is a product bug. If the problem was a misunderstanding on their end, figure out a solution to help them, rather than pointing fingers.<\/li>\n<li><strong>Act timely and follow up. <\/strong>Respond to tickets, questions, and complaints promptly. No one likes waiting around for their issues to be resolved. Even after you solve the problem, ask right away if there is anything else you can do. It&#8217;s a good practice to also follow up after a few days to check if the issue has resolved.<\/li>\n<\/ol>\n<p>(To make things easier, there are various <a href=\"https:\/\/www.sweetprocess.com\/checklist-app\/\" target=\"_blank\" rel=\"noopener\">checklist apps<\/a> that can help get the work done, easily dividing your list based on needs and preferences.)<\/p>\n<h3 id=\"Mindset Idea 4: \u00a0Imagine You Only Have One Channel\">Mindset idea 3: \u00a0Imagine you only have one channel<\/h3>\n<p>Imagine that you can no longer talk to new customers at all. All you have to grow and maintain your business is working with existing customers. No other channels are allowed.<\/p>\n<p>What would you do to make sure your customers are not only satisfied, but share your product or service with their friends? Although purely hypothetical, this is a good way to make sure your existing customers are receiving the <a href=\"https:\/\/www.clicdata.com\/blog\/5-kpis-to-track-for-a-successful-customer-support\/\" target=\"_blank\" rel=\"noopener noreferrer\">best care and support<\/a>.<\/p>\n<h2 id=\"Examples Of Relationship Marketing\">Examples of relationship marketing<\/h2>\n<p>A key to successful relationship marketing is a <a href=\"https:\/\/learn.g2.com\/customer-marketing\" target=\"_blank\" rel=\"noopener noreferrer\">good customer experience<\/a>. The easier you make it for customers to shop with you, the more likely they are to do so. This is where tracking customer information and interactions come into play. For example, tracking the merchandise a customer adds to cart can initiate a reminder email that they haven&#8217;t yet completed the sale.<\/p>\n<p>It\u2019s also helpful to store and organize customer information. When a customer has an account and is able to store their information, it reduces any friction in the checkout process \u2013 without having to input their personal details and shipping information, it can make future purchases a breeze.<\/p>\n<p>Stored information also makes communication more tailored to the individual customer, as you know their preferences and past purchases. Of course, it&#8217;s best to also make it easy for customers to reach you for any questions or issues they have. In the end, two-way communication is key.<\/p>\n<p>Here are some popular examples of relationship marketing:<\/p>\n<ul>\n<li>Birthday or holiday greetings<\/li>\n<li>Listening to customer requests and implementing change<\/li>\n<li>Allowing customers to create profiles (allowing them to do so with an existing social media account can help further streamline the process)<\/li>\n<li>Loyalty or referral rewards programs<\/li>\n<li>Multi-channel marketing (reach customers via email, social media, flyers, etc.)<\/li>\n<li>Personalized communications<\/li>\n<li>Making customer actions as easy as possible<\/li>\n<\/ul>\n<h2 id=\"Practical Strategies And Ideas You Can Use\">Relationship marketing strategies and ideas<\/h2>\n<p>At its root, relationship marketing is about helping the customer and <a href=\"https:\/\/referralrock.com\/blog\/improving-customer-service\/\">going above and beyond what they expect<\/a>. Now that you&#8217;re familiar with the basics and a few examples of relationship marketing, let&#8217;s look to some relationship marketing strategies you can use.<\/p>\n<h3 id=\"Strategy 1. Active Listening: Listen To Customer Requests &amp; Implement Change\">1. Listen to customer requests and implement change<\/h3>\n<p><span style=\"font-weight: 400;\">Your customers are the reason for your business\u2019s success. Take the time to listen to their concerns, their needs, and what they think could be improved. This is often easier to do if your business uses<\/span><a href=\"https:\/\/referralrock.com\/blog\/messaging-apps\/\"> <span style=\"font-weight: 400;\">messaging apps<\/span><\/a><span style=\"font-weight: 400;\">, like Drift or Intercom. These apps help keep and track messages as they come in, allowing you to view all the requests in one place and take it from there.<\/span><\/p>\n<p><a href=\"https:\/\/alanweiss.com\/resources\/hot-tips\/allow-your-customers-to-be-part-of-the-solution\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">As consultant Alan Weiss says,<\/span><\/a><span style=\"font-weight: 400;\"> \u201cAsk your customers to be part of the solution and don\u2019t view them as part of the problem.\u201d Inviting customers to give feedback, and making it easy, helps them feel heard.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thanks to social media, customer reactions and thoughts have the potential to spread quickly and make or break a business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Starbucks offers a prime example of building relationships through feedback. The brand invites customers to share their ideas through the \u201cMy Starbucks Idea\u201d initiative.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Customers are then allowed to vote for the best ideas and share their thoughts. Through this platform, Starbucks strengthens its relationship with its customers and listens and implements their ideas.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2018\/10\/image9.png\" alt=\"Image from Starbucks&#039;s My Starbucks Idea initiative\" width=\"550\" height=\"482\" title=\"\"><\/p>\n<p><span style=\"font-weight: 400;\">In order to turn your feedback procedure into one that creates relationships with your customers, you\u2019ll need to prioritize your customer feedback loop.<\/span><a href=\"https:\/\/www.hubspot.com\/customer-feedback\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">HubSpot<\/span><\/a><span style=\"font-weight: 400;\"> has a great article on the A.C.A.F. customer feedback loop model.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2018\/10\/image10.png\" alt=\"Infographic on the A.C.A.F Customer Feedback Loop (Ask, Categorize, Act, Follow up)\" width=\"551\" height=\"342\" title=\"\"><\/p>\n<h4>Win back lost business by addressing concerns<\/h4>\n<p><span style=\"font-weight: 400;\">Relationship marketing involves enriching other relationships you\u2019ve built with new trust, credibility, and rapport. When a company<\/span><a href=\"https:\/\/referralrock.com\/blog\/importance-of-customer-retention\/\"> <span style=\"font-weight: 400;\">builds on customer engagement<\/span><\/a><span style=\"font-weight: 400;\">, it can quickly address consumer concerns, complaints, and compliments, resulting in customer satisfaction.<\/span><\/p>\n<h3>2. Use social media, but focus where it matters<\/h3>\n<p><span style=\"font-weight: 400;\">Using social media to communicate with the market and generate new leads is an effective form of relationship marketing. However, this should be done in moderation\u2014avoid posting so much that it gets bothersome or overfills the audience\u2019s feed or so little that it never becomes a relationship.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many companies try to build their online presence using several social media and directory listings. While it does help to interact with consumers through their preferred channel, spreading yourself too thin doesn\u2019t help.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead, take a more efficient approach. Understand where your customers spend most of their time, build a solid community on that channel, and increase engagement and outreach on that channel first.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A<\/span><a href=\"https:\/\/referralrock.com\/blog\/brand-mention-tools\/\"> <span style=\"font-weight: 400;\">brand mention tool<\/span><\/a><span style=\"font-weight: 400;\">, like<\/span><a href=\"https:\/\/buzzsumo.com\/\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">BuzzSumo<\/span><\/a><span style=\"font-weight: 400;\"> or<\/span><a href=\"https:\/\/mention.com\/en\/\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Mention<\/span><\/a><span style=\"font-weight: 400;\">, may be a good way to not miss out on any mentions from your customers or potential leads. With BuzzSumo, for example, you can easily identify which social media accounts are getting the most engagement and shares.<\/span><\/p>\n<h3 id=\"Strategy 2. Be Generous and Opportunistic\">3. Be generous and opportunistic to save relationships<\/h3>\n<p>Avoiding bad interactions with customers is crucial to building a relationship, but human (and machine) errors can happen.<\/p>\n<p>Properly resolving less than pleasant experiences is often the difference between saving a relationship and destroying it. Being opportunistic about when to give away things, including discounts and freebies, is one key to resolving these bumps.<\/p>\n<p>You might even turn previously dissatisfied <a href=\"https:\/\/referralrock.com\/blog\/customer-advocacy\/\">customers into advocates<\/a>, who will rave about how you went above and beyond to solve their problem with your generosity.<\/p>\n<h3 id=\"Strategy 3. Smart Customer Touch Points\">4. Implement smart customer touch points<\/h3>\n<p><span style=\"font-weight: 400;\">While you don\u2019t want to overwhelm the customer, you should keep open communications about any updates or news, whether that\u2019s through a news sign or board by the cash register, a monthly newsletter, or even employees personally sharing any new items while talking to customers.<\/span><\/p>\n<h3 id=\"Strategy 4. Make Tasks Easy and Convenient\">5. Make tasks easy and convenient<\/h3>\n<p><span style=\"font-weight: 400;\">Think through your current customer service process\u2014 are there any areas where you can go that extra step? A good rule of thumb is the easier it is for the customer, the better.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is why online stores typically work so well. Many online stores keep customers\u2019 credit cards and addresses on file, making it a relatively quick purchasing process. Some stores may even allow customers to log in using their existing social media, making it even easier to complete transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once a customer has purchased a product or account, there are some ways to guarantee a smooth start. Standard help resources, like a knowledge base, FAQ, or<\/span><a href=\"https:\/\/movavi.io\/best-free-online-video-editor-en\/\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">tutorial videos<\/span><\/a><span style=\"font-weight: 400;\"> make it easy for a customer to learn about the product at their own pace. These resources are available to customers even out of office hours, so they can help themselves at any time or place.<\/span><\/p>\n<h3 id=\"Strategy 5. Loyalty &amp; Referral Programs\">6. Use loyalty and referral programs<\/h3>\n<p>According to <a href=\"https:\/\/www.intercom.com\/blog\/podcast-ann-handley-content-marketing\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ann Handley of MarketingProfs<\/a>, \u201cWe\u2019re past the age where if you build it, they will come. You have to have some sort of promotional program in place.\u201d<\/p>\n<p>Though <a href=\"https:\/\/referralrock.com\/blog\/referral-vs-loyalty-programs\/\">loyalty programs and referral programs<\/a> are two different styles of marketing campaigns, they are both great forms of relationship marketing. One increases loyalty, while the other encourages loyal customers to spread the word and grow the customer base. Both types of programs, however, rely on good relationships.<\/p>\n<p>When used hand-in-hand with relationship marketing, loyalty programs and <a href=\"https:\/\/referralrock.com\/blog\/refer-a-friend-best-practices\/\">referral programs<\/a> can encourage customers to stay with your business and spread the word to others.<\/p>\n<h4>Loyalty rewards<\/h4>\n<p><a href=\"https:\/\/referralrock.com\/blog\/loyalty-program-best-practices\/\">Loyalty program<\/a> points and cash rewards have become a significant element in relationship marketing. When customers get something out of their relationship with your company, they are likely to come back again, and even bring their friends and family with them.<\/p>\n<p><span style=\"font-weight: 400;\">According to <\/span><a href=\"https:\/\/www.zinrelo.com\/loyalty-statistics#:~:text=57%25%20of%20consumers%20spend%20more%20on%20brands%20or%20providers%20to,per%20year%20than%20non%2Dmembers.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Zinrelo<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><span style=\"font-weight: 400;\">members of loyalty programs generate 12\u201318% more incremental revenue growth per year than nonmembers, and <\/span><span style=\"font-weight: 400;\">84% of consumers say they\u2019re more likely to stick with a brand that offers a loyalty program.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By appealing to human emotions,<\/span><a href=\"https:\/\/referralrock.com\/blog\/customer-loyalty-program-software\/\"> <span style=\"font-weight: 400;\">loyalty programs<\/span><\/a><span style=\"font-weight: 400;\"> help create memorable experiences for your customers that keep them coming back.<\/span><\/p>\n<h4>Referral rewards<\/h4>\n<p>A great product, paired with amazing service and experience, increases the odds a customer will refer others to the business \u2013 and referrals pay dividends. According to a Nielsen study, <a href=\"http:\/\/www.nielsen.com\/us\/en\/insights\/news\/2013\/under-the-influence-consumer-trust-in-advertising.html\" target=\"_blank\" rel=\"noopener noreferrer\">84% of consumers<\/a> say the recommendation of a friend or family member is their most trusted source when making a purchase decision.<\/p>\n<p>Oftentimes, a special <a href=\"https:\/\/referralrock.com\/blog\/referral-rewards-incentives\/\">referral discount or deal<\/a> makes it even easier to retain clients and attract new ones. That&#8217;s where <a href=\"https:\/\/referralrock.com\/blog\/referral-programs-101-everything-you-need-to-build-a-referral-marketing-program\/\">a referral program<\/a> comes in. A referral program invites loyal customers to share their experience with others in exchange for attractive rewards or incentives.<\/p>\n[su_icon_text color=&#8221;#474747&#8243; icon=&#8221;icon: lightbulb-o&#8221; icon_color=&#8221;#0088cc&#8221; url=&#8221;https:\/\/referralrock.com\/demo\/&#8221;]If you\u2019d like to know more about how you can create a stellar referral program, feel free to contact us, schedule a demo with us, or start building your program for free.[\/su_icon_text]\n<h3 id=\"Strategy 6. Automate Your Interactions\">7. Automate your interactions<\/h3>\n<p>Adding automation to your marketing strategy can be a big help. Not only does it save you time and effort, it can also take care of any routine tasks needed to keep your business at the top of mind.<\/p>\n<p>Here are two areas where marketing automation tools can be of help:<\/p>\n<ul>\n<li><strong>Email marketing: <\/strong>Email is a great opportunity for businesses to communicate and build a relationship with their customers, whether it&#8217;s a quick update or an invite to your next <a href=\"https:\/\/referralrock.com\/blog\/our-first-webinar\/\">company webinar<\/a>. Emails can also be automatically sent at a certain time or once a certain action is taken.<\/li>\n<li><strong>Social media marketing: <\/strong>Social media accounts are an important place to connect with customers and build trust. You can answer questions, share news about your brand, and post your latest marketing campaign or promotion. While some interactions may need a direct response, most messages can be automated using software, like Buffer or Later. These tools allow you to plan a lineup of posts and stay in the sight of customers, without having to do much work at all.<\/li>\n<\/ul>\n<h3>8. Build a great customer service team<\/h3>\n<p>Providing excellent customer service, quickly resolving issues, and actively <a href=\"https:\/\/referralrock.com\/blog\/social-media-important\/\">engaging with customers on social media<\/a> are essential to forging good customer relationships. However, none of this can be done without <a href=\"https:\/\/referralrock.com\/blog\/improving-customer-service\/#1\">a strong customer support team<\/a>.<\/p>\n<p>Your customer service team is out in the front lines, talking and engaging with customers. Encourage them to <a href=\"https:\/\/referralrock.com\/blog\/customer-centric\/\">be customer-centric<\/a> and give rewards for anyone who goes the extra mile to satisfy customer needs.<\/p>\n<p><span style=\"font-weight: 400;\">Customer service teams should be able to communicate what your company does, how you differ from the competition, who your target audience is, and what value you offer. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Beyond the customer service team, it\u2019s best to have clear policies that guide all employees on how to interact with customers in both positive and negative situations. Conduct regular training for your entire team, and help the entire company participate in improving the overall customer service experience.<\/span><\/p>\n<h3>9. Collect and use detailed data about your customers<\/h3>\n<p>Customer data can be used to inform your marketing efforts. Have sales increased since the new product was launched? Does the new onboarding process help lessen customer confusion?<\/p>\n<p>Customer data can help guide you to make any necessary changes that will benefit both your company and customers.<\/p>\n<ul>\n<li><strong>Track customer info:<\/strong> Start with the customer\u2019s name. Whether it&#8217;s remembering their name for in-person interactions or addressing them personally in your monthly newsletter, remembering a few top-level details indicate you care about your customers.<\/li>\n<li><strong>Create messaging tailored to each customer: <\/strong>For other valuable customer information, such as their birthday or date they became a member, you can also send them a nice greeting or notification about the special day.<\/li>\n<\/ul>\n<p>But what about customer privacy? Will collecting data lead to a loss in customers? If you\u2019re collecting only the necessary data to create a better shopping experience, most customers won\u2019t mind, especially if you&#8217;ve\u00a0<a href=\"https:\/\/onehourprofessor.com\/best-privacy-policy-generators\/\" target=\"_blank\" rel=\"noopener\">created a privacy policy<\/a>\u00a0that explains what you do with the information.<\/p>\n<h3>10. Resolve the most common issues and requests<\/h3>\n<p>Knowing what to say to your customers and when can be a daunting task, especially if you have a growing customer base or offer live chat support. To help provide a fast response, it&#8217;s a good idea to create a guide with procedures for each sales inquiry or situation. This can also be used as a training tool for new staff members to learn your company protocol.<\/p>\n<p>Make sure to keep your guide up-to-date by having your customer support team add any frequently asked questions they come across. This is a good way to include any new features or reveal which areas customers tend to need more support.<\/p>\n<h3>11. Find more ways to be proactive with your feedback<\/h3>\n<p>There are many ways to invite customer feedback and build customer relationships. For instance, you could conduct online surveys or have a form for more immediate feedback. Interacting with customers immediately after they use your product or service will not only result in more detailed responses (when the experience is still fresh in mind), it can improve your overall <a href=\"https:\/\/referralrock.com\/blog\/nps-questions-with-examples\/\">net promoter score (NPS) and customer satisfaction rating<\/a>.<\/p>\n<h3>12. Invest in a CRM or similar tool<\/h3>\n<p>Customer relationship management (CRM) software can make relationship marketing much easier. The right CRM tool can store relevant personal information, record customers purchase patterns, and keep track of all customer concerns or questions. Below are a few CRM tools and features they offer:<\/p>\n<p><a href=\"https:\/\/www.fullstory.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">FullStory<\/a> can help your support team understand exactly where customers are having issues on digital platforms, helping to increase revenue and retention.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2018\/10\/image22.png\" alt=\"Screenshot of FullStory CRM\" width=\"550\" height=\"307\" title=\"\"><\/p>\n<p><a href=\"https:\/\/elev.io\/\" target=\"_blank\" rel=\"noopener noreferrer\">Elev.io<\/a> creates in-app helpers to guide and assist customers toward understanding exactly how to use each feature in your platform.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2018\/10\/image20.png\" alt=\"Screenshot of elev.ioCRM\" width=\"551\" height=\"285\" title=\"\"><\/p>\n<h2>Tracking the success of relationship marketing<\/h2>\n<p>Relationships and data might not seem to get along. After all, relationship marketing is not about the number of sales closed, but how you close the sale.<\/p>\n<p>Still, tracking and analyzing metrics behind your customer relationship is a vital aspect of identifying and creating an effective strategy.<\/p>\n<p>The following metrics can help you track the success of your relationship marketing.<\/p>\n<h3>1. Customer lifetime value<\/h3>\n<p>Customer lifetime value (CLV) is the first metric to help you understand how satisfied your customers are and how strong your relationship with them is. Lifetime value is calculated using the following formula:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2019\/05\/pasted-image-0-13.png\" alt=\"formula for calculating customer lifetime value\" width=\"600\" height=\"200\" title=\"\"><\/p>\n<p>We cover CLV in more detail in our <a href=\"https:\/\/referralrock.com\/blog\/importance-of-customer-retention\/\">comprehensive customer retention article<\/a>.<\/p>\n<h3>2. Conversion rate<\/h3>\n<p><a href=\"https:\/\/referralrock.com\/blog\/conversion-strategy-examples\">Conversions<\/a> are actions that move a lead or customer further down the purchasing funnel. While purchases are the main conversion most companies aim for, all the actions that lead up to a purchase also count as conversions.<\/p>\n<p>Knowing the rates of key conversions throughout a customer&#8217;s journey \u2013 from their first purchase to years into their relationship with you \u2013 will help you determine stronger and weaker points of your relationship marketing.<\/p>\n<p>Most customer support platforms provide specific features, such as tags and filters, to help track conversion metrics. For example, if a previously loyal customer decides to cancel their membership, you can better see and understand where in the customer&#8217;s journey the disconnect may have started to happen.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2018\/10\/image6.png\" alt=\"An example of tags on a customer support platform\" width=\"277\" height=\"65\" title=\"\"><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2018\/10\/image21.png\" alt=\"Someone typing in a search bar for different tags on a customer support platform\" width=\"551\" height=\"264\" title=\"\"><br \/>\n<a name=\"Marketing-strategy\"><\/a><\/p>\n<h3>3. Strength of your network<\/h3>\n<p>Your network is not just about how many connections or followers you have on social media, or even the number of email subscribers. Rather, it&#8217;s about the quality of your network. How engaged are your followers?<\/p>\n<p>When it comes down to it, social media engagement is more important than your quantitative follower growth. To create content that really engages your followers, start by measuring the demographics of those who engage. Look at age, location, and other details to find out who you connect with the most. Then, tailor your content to these segments.<br \/>\n<a name=\"Sales-number-and-opportunities-metrics\"><\/a><br \/>\nAnother area to focus on is your email list. How are your birthday promotion offers faring? Are you receiving feedback from your customer survey? Look for any areas that need improvement, and find ways to increase your <a href=\"https:\/\/mailsend.com\/how-email-engagement-is-important\" target=\"_blank\" rel=\"noopener\">email engagement<\/a> or open and click rates.<\/p>\n<h3>4. Website metrics<\/h3>\n<p>Go deeper with your analytics, including the total number of page views, time spent per visit, bounce rate, and cross-sell and upsell ratios. Each of these metrics will reveal how your customers are reacting to your content.<\/p>\n<h3>5. Customer feedback metrics<\/h3>\n<p>If your customers are having great experiences and feel like they are being heard by your company, you are much more likely to create a lasting relationship. Here are some good ways to identify feedback metrics from your customers:<\/p>\n<ul>\n<li>Customer experience ratings, such as <a href=\"https:\/\/referralrock.com\/blog\/what-is-an-nps-score\/\">NPS<\/a>, Customer Satisfaction Score (CSAT), and\u00a0Customer Effort Score (CES)<\/li>\n<li>Social media monitoring<\/li>\n<li>Direct reviews and feedback from third-party review sites<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2018\/10\/image15.png\" alt=\"Metrics from a company&#039;s happiness report\" width=\"550\" height=\"401\" title=\"\"><\/p>\n<h3>6. Customer support team metrics<\/h3>\n<p>How well is your customer service team building relationships? These metrics can help you find out:<\/p>\n<ul>\n<li>Case resolution time in hours\/minutes\/seconds<\/li>\n<li>Customer callback numbers (How many calls or responses does it take to reach a solution?)<\/li>\n<li>Duration of the support call or chat<\/li>\n<li>Total complaints vs. complaint resolution<\/li>\n<li>Number of follow-ups<\/li>\n<\/ul>\n<h3>7. Other key sales metrics<\/h3>\n<p>Some other metrics that point to the strength of your relationship marketing are:<\/p>\n<ul>\n<li>Number of new and repeat customers<\/li>\n<li>Retention rate vs. churn rate<\/li>\n<li>Number of new customers by channel<\/li>\n<li>Revenue by channel<\/li>\n<li>Close and renewal rates<\/li>\n<li>Sales cycle duration (How long does a conversion take? How long do you take to close a sale?)<\/li>\n<li>Onboarding success<\/li>\n<li>New revenue sources<\/li>\n<\/ul>\n<h2 id=\"Relationship Marketing Is A Must\">Relationship marketing is a must<\/h2>\n<p>Like all marketing, relationship marketing is meant to increase sales and expand awareness. But unlike more traditional types of marketing, relationship marketing is aimed at building connections with customers rather than increasing transactions and sales.<\/p>\n<p>How do you plan on implementing a relationship strategy to keep current customers happy and loyal?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The only guide you&#8217;ll ever need to understand relationship marketing. Check out these tips and examples, so you can be a relationship marketing pro. <\/p>\n","protected":false},"author":13,"featured_media":16290,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[5847],"tags":[5920,3252,2588,5919,3250,3242,3243,3251,3268],"class_list":["post-7576","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customer-loyalty","tag-completely-unaware","tag-customer-lifetime-value","tag-customer-service","tag-education","tag-guide","tag-relationship-marketing","tag-relationship-marketing-examples","tag-relationship-marketing-tips","tag-reputation-management"],"acf":[],"modified_by":"Jessica Huhn","_links":{"self":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts\/7576","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/comments?post=7576"}],"version-history":[{"count":32,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts\/7576\/revisions"}],"predecessor-version":[{"id":35913,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts\/7576\/revisions\/35913"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/media\/16290"}],"wp:attachment":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/media?parent=7576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/categories?post=7576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/tags?post=7576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}