The world is built on relationships. Familial, romantic, work and play, if the relationships in your life aren’t positive, there’s a problem. That’s why relationship marketing is at the heart of everything we do – and should be for you, too.
Relationship marketing is all about building solid connections with your client base, fostering customer engagement, loyalty and interaction. Much like in a romantic relationship, it takes time, energy and even human emotion; the results are 100% worth it.
Let’s look at ten facts you should know about relationship marketing to convince you that it should be your number 1 priority, just like that special someone is in your personal life!
Fact #1. It takes six to seven times more money to target a new client than to retain an old one.
Yup, you read that right. Naturally, we all want to attract more customers, but there’s little point in constantly lassoing in the new, spending all that money and time, only to keep losing faithful clients along the way.
It’s vital to understand the numbers of what it takes to onboard a client. It’s not only the money it takes to attract them, it’s how long it takes to understand them and their business. That feeling when you finally get into a good rhythm of work with a client is so sweet, that you don’t want to immediately throw it away by chasing another shiny new customer!
Fact #2. A yearly increase of 1% in customer retention can result in a 20% yearly increase in revenue.
Why? Well, you’re not spending that money on promotion and onboarding operational costs; happy and loyal customers won’t mind premium pricing; they’ll refer other customers to you (more on that later).
Fact #3. Competition is fiercer than ever.
The small business market is booming, social media provides a gateway into everyone’s home, everyone’s clamoring for potential clients’ attention. As a result, they’re getting savvier. We find clients doing their own research and making informed decisions, albeit ones that are often based on price.
Relationship marketing is one of the only ways to counter that. After all, we’re still human and it’s hard to put a price on that special connection.
Fact #4. Loyalty is unbeatable.
The fact is, people, don’t want to spend money at faceless corporations. Building a positive relationship with your clients means that they’ll stick by your brand for the long haul. As business owners, we need to go the extra mile to strengthen that ‘know, like and trust’ factor.Building a positive relationship with your clients means that they’ll stick by your brand for the long haul.Click To Tweet
Fact #5. Having a relationship with clients helps you meet their needs.
While we talk a lot about how loyal customers will increase your revenue, they’ll also improve your business. Those open channels of communication mean that you get honest and constructive feedback, whether on existing processes or things you’re just trying out. Take advantage of it to help your business go from strength to strength.
Fact #6. Rewards programs are their own reward.
There’s a reason we keep coming back to them again and again. Studies show that clients feel honored, recognized and excited to receive an exclusive offer. It helps them feel that they get something out of their relationship with you (beyond your awesome services, of course!) that makes their loyalty worthwhile.
Referral programs are also win-win. Giving a gift to a client for a positive referral makes both of you happy in this relationship.
Fact #7. Celebrating your clients creates a bond.
We love to help clients mark the milestones in their business, showing how we really invest in their success. Obviously, you have to play this one by ear as sometimes you might not want to share who your clients are, or they won’t want to be mentioned; but if you’re both happy, why not give them a shout out? Relationships are about support, right?
Fact #8. Positive current clients amplify your brand.
That’s an unequivocal fact. Clients who will vouch for you without being prompted, who will promote your services to friends, family, and colleagues; these guys are golden. There are few things more valuable to a business owner than word-of-mouth referrals. So you want to make them feel special. By using relationship marketing strategies to give your customers not simply a product, but an experience, you’ll foster a connection that they’ll want to shout about!
Fact #9. It doesn’t have to be complicated.
We’re all too old to play games, right? With good relationship marketing, sometimes it’s the simplest things that have the biggest impact. Engage regularly with comments on social media, using clients’ names and welcoming new followers. Provide proactive service – don’t simply wait for them to come to you. Ask them for ideas (and then action them!).
Fact #10. All relationships take work (lesson for life, right?!).
But it’s the work to build on what you’ve already achieved that makes it so rewarding. And the best thing of all? It’s an absolute pleasure to treat your clients well and create a personal connection, so it barely even feels like work!