By Caroline Forsey

Want to know a secret? Customer retention is much more critical to your company’s success than customer acquisition.

In fact, Frederick Reichheld of Bain & Company found that as little as a 5% increase in customer retention can increase company revenue by as much as 25–95%.

Whether you’re a team of one or more, strategic relationship marketing can help you connect with your customers and engage them long-term.

As a result, you can boost customer retention, increase revenue, and run a successful business without all the costs associated with getting new customers.

Let’s dive into the benefits of relationship marketing, examples of excellent companies that build lasting relationships with customers, and relationship marketing strategies you can employ.

Importance of Relationship Marketing

If customers feel satisfied with their interaction with you, they’re more likely to become a repeat customer and return to your business repeatedly.

After all, existing customers are 50% more likely to try a new product and spend 31% more than new customers.

That’s why relationship marketing is essential for every business that wants to increase revenue long-term without spending more.

Starting at the right time is also crucial. The perfect time to start a relationship marketing strategy is when a customer has made a purchase (or several).

And your goal with relationship marketing is to convert customers to brand-loyal patrons of your business.

To do that successfully, take a personalized approach to client retention and integrate into their lives in a natural and genuine way.

What are the benefits of relationship marketing?

There are various benefits attached to using relationship marketing strategies for your brand. Done right, the most impactful ways to improve your business through relational advertising include:

• Strengthening customer loyalty and increasing your customer retention rates.
• Generating greater brand awareness and equity through customer referrals.
• Scaling up cross-selling and upselling opportunities to an audience who already values you.

Let’s look at a few firms that have adopted a relationship marketing strategy to retain customers. Afterward, we’ll explore how you can implement a strong relationship marketing strategy today.

1. Capital One

Capital One understands its customers deeply — down to the minor inconveniences that plague them most. And one of those is the long TSA line at the airport.

Capital One reimburses all venture cardholders up to $100 when they pay the TSA PreCheck fee. All they have to do is pay for it with their Capital One credit card.

TSA PreCheck expires after five years, and this benefit applies every time the cardholder wants to renew their PreCheck status.

Here, Capital One is demonstrating its brand value to its current audience through:

• Offering a perk that’s universally appealing to their base — free money.
• Mitigating a prevalent issue, customers face a long-term resolution.

This benefit speaks to a relevant pain point for Capital One customers and makes keeping an account open with Capital …read more

Source:: HubSpot Blog

Author: Aaron