The purpose and importance of Relationship Marketing

In the business world, especially marketing or sales, one strategy that is commonly understood and studied is relationship marketing.

Usually, this strategy is used because it is able to maintain good relations between the company and its customers.

Unfortunately, nowadays many marketers or companies are starting to forget and also ignore the importance of this one marketing strategy.

In fact, this strategy is very important to maintain good relations with customers, it is even considered capable of increasing customer loyalty in order to get business benefits for business owners.

The purpose and importance of Relationship Marketing

However, what is relationship marketing and what is the purpose and importance of building relationship marketing? To find out more clearly, see the explanation below.

Relationship Marketing Is

Relationship marketing according to Kotler and Armstrong (2010: 789) is a process for creating, maintaining and enhancing strong relationships with customers and other stakeholders.

In addition to devising new strategies to attract new customers and create transactions with customers, companies are constantly struggling to retain existing customers and build long-term profitable relationships with them.

According to (2014), relationship marketing is a marketing strategy concept that seeks to establish long-term relationships with customers, namely maintaining a strong and mutually beneficial relationship between service providers and customers that can build repeat transactions and create customer loyalty.

In general, relationship marketing is a marketing strategy for establishing deeper and more meaningful relationships with customers.

Not only that, this one marketing strategy also has the function of ensuring long-term brand loyalty and customer satisfaction.

This is because with relationship marketing, the company will get a good and strong relationship with its customers.

Not only that, customers also gain the trust of customers so that they can lead to a sustainable business.

The importance of relationship marketing is also a media promotion by word of mouth through information shared voluntarily by their customers.

Finally, this information can generate prospects and also more profits for the company.

Moreover, this relationship marketing is rational and focuses on customer satisfaction for the long term. 

Unlike the case with marketing strategies in general, which are transactional in nature and focus on sales transactions or short-term wins.

Basically, relationship marketing is a continuous process that requires a company to establish communication with consumers so that its goals are achieved. 

So it's not surprising that with this strategy, the company is also able to manage its resources well in order to be able to meet consumer needs in the future.

Such a warm relationship must be based on various principles that are mutually supportive, not just a transactional relationship and solely carrying out work orders for profit. In the long run, this relationship will be good for both parties.

Relationship marketing is one aspect of CRM (Customer Relationship Management) which has a focus on customer loyalty and also the long-term involvement of customers. So it's not just about short-term goals, such as customer acquisition and also individual sales.

Therefore, this relationship marketing strategy is very effectively carried out by business or business owners. 

The Purpose of Building Relationship Marketing

In implementing and also building relationship marketing, of course there are goals to be achieved by every company.

However, in general, the main goal of relationship marketing according to Sivesan (2012) is to develop strong relationships between marketers and customers.

The trick is to convert or make indifferent customers become more loyal. On the other hand, the main goal of relationship marketing is as a place to find lifetime value from customers.

After the lifetime value is obtained, the next goal is how to make the lifetime value continue to increase from year to year.

After that, how to use the profits from the first two goals to get new customers at a relatively low cost.

Thus, the long-term goal of relationship marketing is to generate continuous profits from two groups of customers: current customers and new customers.

In addition, the purpose of relationship marketing is to build strong relationships between marketers and customers. This is ultimately able to increase the chances of reaching a purchase agreement or conversion which then fosters customer loyalty.

Therefore, it is important to maintain good relations with customers by understanding how customers use business products and services by continuing to innovate products according to customer needs.

In more detail, here are the details of relationship marketing goals that you need to know.

1. Finding the lifetime value of customers.
2. Get new customers at a relatively low cost.
3. Strengthen the relationship between marketers and customers and also make customers more loyal.
4. Formulate how customer lifetime value can be continuously developed and also enlarged from year to year.
5. Generate continuous profits from both existing and new customer groups.

The Importance of Building Relationship Marketing

Building relationship marketing is important because in general, this strategy will later be useful for increasing customer satisfaction to higher and easier achievements. Not only that, here are some things about the importance of building relationship marketing.

 1. Easy to get potential customers while providing profit.
 2. Giving advantages to products with word of mouth advertising by customers.
 3. It is easier to achieve customer satisfaction because customers feel more cared for.

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