Relationship marketing and loyalty

relationship marketing and loyalty

This article examines the emerging concept of relationship marketing in an accessible way through an explanation of airline loyalty schemes. It provides. Abstract- The purpose of this study is to provide an insight into the impact of relationship marketing strategy on customer loyalty of retail bank sector in Pakistan. Nowadays, only those trading that just focus on the effectiveness of the marketing mix elements can shift their direction towards relationship marketing and.

Mutual Benefit The two main components of relationship marketing -- personalization and regular, periodic communication -- strive to increase customer satisfaction. One of the effects of relationship marketing is mutual benefit.

The Impact of a Relationship Marketing Strategy on Customer Loyalty |

The customer receives something of value through regular, personalized communication. A business hopefully increases long-term sales and profitability. For example, a grocery store discount card tracks purchase behavior. In exchange for allowing the grocery store access to his spending habits, a customer may receive volume discounts and individual pricing on frequently purchased items.

relationship marketing and loyalty

The additional savings may prompt the customer to shop at the store more often. Retention A satisfied customer is more likely to remain loyal to a company.

The Impact of a Relationship Marketing Strategy on Customer Loyalty

According to the "European Journal of Economics, Finance and Administrative Sciences," companies are able to make more money from customers who take advantage of a loyalty program's perks. Higher customer satisfaction levels tend to increase the cost efficiency of the relationship. Some long-term relationships are not beneficial to a company, regardless of customer satisfaction level.

relationship marketing and loyalty

A business should not continue relationships that cost too much to maintain. Customer Gratitude Customer gratitude plays a key role in the development of long-term relationships and loyalty.

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While you run the risk of losing the salesperson and having to rebuild the relationship with the customer, this kind of loyalty can increase sales dramatically. To achieve this kind of loyalty, you must train your salespeople in the techniques of building customer relationships. Product Loyalty Customers may develop a relationship with a product.

relationship marketing and loyalty

Because products solve customer problems or fulfill customer desires, they tend to have emotional impact. Customers will return to a product that satisfies them over and over.

The Impact of a Relationship Marketing Strategy on Customer Loyalty | Your Business

You have to offer the best products available to achieve this kind of loyalty. Your target market is people who are willing to pay extra for quality.

relationship marketing and loyalty

Avoid discount brands for this type of customer, and focus on providing only the best. Service Loyalty If you provide stellar customer service, people will return to you.

Customer service focuses on understanding specific problems, taking responsibility for solving those problems, and following up to make sure the customer is satisfied.