Relationship marketing is a marketing strategy adopted by companies to create trust and loyalty with customers.
Relationship marketing is important due to the following reasons:
1. Decreased marketing and advertising spend: Since relationship marketing is building long term relationship with consumers, it leads to reduction in marketing spend over the long run.
2. Satisfied customers: Providing exceptional customer service is part of relationship marketing. Customer satisfaction increases with the quality of customer service.
3. Customer focused organizations: Organizations main focus is consumers in companies that adopt relationship marketing strategy.
4. Word-of-mouth: Since relationship marketing increases customer satisfaction, satisfied customer in turn promote your product which leads to word-of-mouth marketing of your products.
5. Higher Return on Investment from Customer Acquisition: Relationship marketing leads to snowball effect. An acquired customer comes back and leads to repeat sales.