Relationship marketing leads to conversions in an indirect fashion—the focus is not on making a sale, but rather on building loyalty through engagement. This method of marketing relies on a brand’s customer-centric efforts to retain existing customers’ business through effective rewards for loyalty and frequent, relevant communications that provide value to consumers and create meaningful connections.
When customers feel they have a real relationship with a brand, it not only increases retention but also improves customer satisfaction, leading to more word-of-mouth referrals and higher conversion rates in the long run. To learn how to get the ball rolling on a successful relationship marketing strategy, check out the tips from members of Forbes Agency Council below.
Forbes Agency Council members share ways to leverage relationship marketing to build long-term loyalty.
Photos courtesy of the individual members.
1. Add Value To The Person
The best form of relationship marketing is adding value to the person. The best way to add said value is to help the person with what they need. To do this, you need to understand that person’s needs. Do they want more sales? Connect them with people in your network who can use them. Do they need a specific service provider? Connect them with a quality service provider. Give, give, give. – Tony Pec, Y Not You Media
2. Create A Customer Club
A good (not trivial) approach to relationship marketing is creating a customer club for which private events are held, special discounts are offered and so on. After all, relationship marketing is critical because of its ability to maintain close contact with customers. And at closed events, you have an indispensable opportunity to learn how customers use a brand’s products and services. – Dmitrii Kustov, Regex SEO
3. Start Solving Problems Right Away
The best way to create raving fans—and new business—is to start solving problems and adding value even if you’re not being paid right then. Recently, my firm won a nice piece of business. When I asked the CEO why they chose Impact Communications over the others, he said we started adding value and solving problems right away. My motto: Always be a helper and give more than the competition. – Marie Swift, Impact Communications, Inc.
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4. Share Your Strong, Passionate Point Of View
Having a strong point of view on something relevant to the solution that you or your product are providing is a way to endear yourself among your target audience. Sharing the things that you’re passionate about—not for the sake of being outrageous, but to make a point on something that you genuinely care about—it can help customers relate to you. This builds loyalty and trust. – April (Margulies) White, Trust Relations
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5. Gamify Loyalty Programs
Not to bring Starbucks into another discussion, but its loyalty program is fantastic. Its app gamified the loyalty process and sends alerts such as, “It’s your birthday! Have a free drink on us.” The small things—such as offering occasional free drinks and rewarding loyalty with “stars”—inspired loyalty programs across industries to move from passive to engaging. – Bernard May, National Positions
6. Focus On Compassion And Human Connection
Whether it’s agencies building loyalty with clients or brands with consumers, the core strategy should be to build compassion and human connection. The brand Chewy is a great example: It sends flowers to customers whose animals have passed and encourages customers to donate items that have been refunded to shelters rather than returning them. – Spencer Hadelman, Advantage Marketing
7. Connect Seemingly Different Sectors For Mutual Benefit
My favorite type of relationship marketing is where two seemingly different sectors convene for mutual benefit and impact. Most notably, this has taken place via our company’s “Purposeful Partnership.” We partner nonprofits with for-profits in specific short-term and long-term campaigns—connecting a kidney doctor with a multimedia platform and the American Kidney Fund, for example. – Nadya Rousseau, Alter New Media LLC
8. Stand For A Higher Purpose Than Profit
One example of a company doing impressive relationship marketing that comes to mind is Patagonia. As its recent news suggests, it has solidified its standing as an environmentally conscious business. With that, the brand has promoted loyalty and engagement from its consumers, as they believe Patagonia stands for a higher purpose than just profit. – Alessandro Bogliari, The Influencer Marketing Factory
9. Be There In A Moment Of Need
When it comes to engagement and marketing, the best way to ensure it is possible to win the hearts of your customers is to be there in a moment of need. A brand that shares its product at a discount or at a time when it is really needed by the public is one that will really form a lasting memory in customers’ and possible customers’ minds the next time they head to the store. – Jon James, Ignited Results
10. Use HCD To Design A Better Experience
The human-centered design method offers a win-win for both businesses and users. The HCD approach puts the users in the center and offers solutions around them; it’s commonly used in the product process, but also in business management. The better the product experience, the more likely people will love using it, continue to use it and share their positive experiences with others. – Goran Paun, ArtVersion
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Author: Expert Panel®, Forbes Councils Member
