A recent article on the financial blog Fundivo pointed out some timely facts. “As more and more customers expect a personalized experience, a growing number of businesses have had to shift their focus from transactional marketing to relationship marketing. The reason for that is because they found that building a relationship with customers usually results in increasing retention, average order size, sales and ultimately, profits.”
Another article points out that “Small businesses frequently tend to focus their resources on the difficult task of acquiring new customers, and often neglect the customer base they have already built.” Fundivo continues, “While this is perfectly understandable, businesses have much more to gain from building client loyalty by establishing sustainable and long-lasting relationships, rather than focusing strictly on new client acquisition.”
Why is there this new emphasis on relationship marketing?
As one article states, “A successful business aims to foster good relationships with clients as opposed to trying to sell at any cost.” There are some compelling reasons to place some of your marketing dollars into relationship marketing found in recent studies. For instance, it is understood that it is roughly five times more expensive to acquire a new customer than to retain one. A mere 2% increase in customer retention has the same effect as decreasing costs by 10%. Furthermore, research has shown that reducing your customer defection rate by 5% can increase your profitability 25 to 125%. Did you know studies show 80% of your company’s future revenue will come from just 20% of your existing customers?
Need more benefits of effective relationship marketing? Most businesses find increases in word of mouth referrals. It builds customer loyalty and returns for future purchases. It will improve marketing efficiency by reducing churn. Clients are more willing to pay more for your products and services. Finally, customers provide valuable feedback and ideas.
SendOutCards offers a top-of-the-line relationship marketing platform. This powerful, easy to use, robust system makes it easy to build and maintain relationships. We do this through our unique online greeting card and gifting service. The versatility of this system alone makes it second to none. We even offer a custom branding package to enhance your marketing efforts. Contact Turnaround Tour ShopPros today to schedule a time to see this revolutionary system for yourself. Many businesses are growing their bottom line using a sound relationship marketing strategy including SendOutCards.