Relationship Marketing Assignment - Role Of Business Entity
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Added on 2019-09-30
Relationship Marketing Assignment - Role Of Business Entity
Added on 2019-09-30
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Blog: RelationshipMarketing-What role it playsfor a Business Entity?
Relationship Marketing: What role it plays for a BusinessEntity?June 20, 2019A business establishment has to ensure that it is able to attract and retain customers for achievinggrowth, profitability, and sustainability. The importance of retaining customers into the business is of prime importance and hence for most of the business establishments, customer retention is more essential than customer acquisition. A business entity achieves most of its profitability from repeat customers or the brand loyal customers that are retained into the business by implementing ethical and effective customer relationship management strategies. The customers need to be made to feel special and respected by the business entity that will keep them attracted toward the brand and restrain them from venturing away into some other rival brands. Therefore,it is the responsibility of a business entity to ensure that there are sound relationship marketing strategies and techniques that are driven toward attracting the customers and retaining them into the business. The stronger the relationship between the business and its customers, more is the chance of achieving effective customer retention. Today, the supremacy and success of a business establishment are measured through the customer retention rate that is achieved by the business on a year-on-year basis. Therefore, relationship building with the customers is a mandate that every business organization must undertake in order to keep the majority of the target customers
attracted toward the brand. A relationship can be developed with customers through the implementation of diverse strategies and techniques by a business entity. Relationship marketing is one of the most popular and widely used strategies that is deployed by most of the business entities today for ensuring that they are able to build and nurture a close bonding with the customers such that they turn into loyal customers of the business. It is evident that the major portion of business comes from the existing customers as compared to the new customers. This is because, the old customers of the business are conscious and used to with the level of products and services being offered by the business and hence, they have developed the desired trust and confidence on the business that drives them toward undertaking repeat purchases from the business organization. Relationship marketing plays a key role as a marketingtechnique of a brand that is intended to develop, strengthen and sustain a long-term relationship between the business organization and the target customers.According to research undertaken by Frederick Reichheld of Bain & Company, around 5% increase in customer retention by a business has the potential to enhance the revenue of the business by around 25-90%. One of the renowned global brands, American Express also determined that it is the existing and loyal customers of a business that mainly spend more as compared to the new customers. The reason being that the existing customers have already determined the worth of the brand and they are willing to stay loyal to the brand as they are confident about the good intentions of the brand to serve them ethically and in a dedicated manner.
A customer will make repeat purchases from a brand if he or she is confident that the products orservices offered by the brand will offer value-for-money. Hence, relationship marketing strategies need to be prudent in order to ensure that each of the customers of the business is treated with empathy, respect, and concern and in the future products and services are offered to them as per their tastes and preferences. This will surely increase the level of customer satisfaction and customer retention. We can say that the success or failure of a modern business entity is entirely dependent on the effectiveness of relationship marketing strategies that are developed and implemented by the marketing department of the business. The concept of relationship marketing can be described as a technique of marketing undertaken by a business organization that focuses on developing deeper and stronger relationships with the target customers so that the customers can enjoy long-term satisfaction from the products and services offered by the company. This leads to the generation of brand loyalty for the business bythe customers. The target of relationship marketing is not to achieve short-term goals such as some quick revenues and profitability, but the aim is to ensure customer satisfaction for a long-term that will lead to effective customer retention. Relationship marketing strategies enable a deeper understanding of the needs of each of the customers of a business so that effective marketing strategies can be formulated for each one of them. Concept of Relationship Marketing
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