A recent article on investment firm Fundivo’s blog site pointed out “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 said “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. 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.”
Struggling to find new business? Work on satisfying existing customers instead.
Why this new emphasis on relationship marketing? One article states, “A successful business aims to foster good relationships with clients as opposed to trying to sell at any cost.” Studies show compelling reasons to invest in relationship marketing. For instance, it is five times more expensive to acquire new business than to retain customers. A mere 2% increase in customer retention equals the effect of decreasing costs by 10%. Furthermore, reducing customer defection by 5% can increase profitability 25-125%. 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 increase word of mouth referrals. It builds customer loyalty. More customers return for future purchases. It reduces churn, improving marketing efficiency. 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 building and maintaining relationships easy. Our unique online greeting card and gifting service is the key. The versatility of this system alone makes it second to none. We even offer a custom branding package to enhance your marketing efforts. Contact us today at Turnaround Tour ShopPros to schedule a tour of this revolutionary system for yourself. See why so many businesses grow their bottom lines using a sound relationship marketing strategy: SendOutCards.