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What Is Relationship Marketing: Building Lasting Connections With Customers

Let me tell you: relationship marketing is what your business needs TODAY. Why? Because it sets you up for long-term success. Relationship marketing focuses on creating strong, meaningful connections with customers, ensuring their loyalty and satisfaction. Unlike traditional marketing strategies, relationship marketing is not just about making a sale; it’s about building ongoing interactions and trust with customers. In this article, we’ll set the record straight about the pros and cons of relationship marketing, and how to approach it in a fresh way.

Looking for some inspiration on how a brand can build a long-lasting bond with its customers? We have an excellent case study on the loyalty program of Benefit Cosmetics.

Benefit Cosmetics loyalty program banner from Antavo.

Understanding Transactional Marketing

Before we move to the focal point, we need to know what transactional marketing is. Well, it is purely product-based.

Amazon is full of good examples of transactional marketing. There are numerous sellers offering the same or similar products, such as the Stanley Cup. You don’t specifically know who you’re buying from. You know you’re buying from Amazon, but Amazon isn’t just one company sending out a bunch of products; they host hundreds of thousands of sellers worldwide.

This approach can be seen as flawed because it lacks the emotional connection and loyalty that relationship-based marketing aims to cultivate. However, it works exceptionally well for Amazon due to the sheer volume and diversity of products they offer. The platform’s massive selection and the competitive environment among sellers help keep prices low, which is a key factor for customers seeking good deals. In this context, Amazon doesn’t need to rely on relationship building; the convenience of finding almost anything at a competitive price makes it difficult for customers to look elsewhere. While this method means sellers might risk losing customers to better deals, Amazon’s ability to consistently provide a vast range of products at competitive prices ensures that they can sustain this transactional approach effectively.

In transactional marketing, there’s often a middleman involved and it really doesn’t require much afterthought or follow-up after the transaction’s been made. It’s not very emotional: you need a product, you buy it, and the transaction is complete. Due to the lack of bonding, there’s always a risk that customers will turn their backs the moment someone else offers them a better deal.

An Amazon listing page showcasing a number of Stanley cups
Stanley cups on sale from different sellers at various price points on Amazon. In a competitive marketplace, buyers can easily compare options, but may not care who the seller is, focusing instead on getting the best deal.

The Essence of Relationship Marketing

Relationship marketing goes further than a simple recipe. It focuses on one-on-one interactions and how you feel about the brand or person selling the product or service. After all, every transaction can have some kind of relationship to it. Think about Apple products, for example. Apple is a magnificent example of an emotional transactional-based experience. People’s brand loyalty to Apple smartphones is a notable 13% of consumers, alongside a whopping satisfaction rate of 92%. This is achieved masterfully because all of their products sync with each other so well.

However, Apple’s marketing is about its relationship with you and the product, not with you as a person. Still, this shows the power of emotional marketing.

People make decisions based on their feelings about brands and sellers, not just products. Word of mouth is a great example of relationship marketing. If you wish to discover other ways to build a genuine connection with customers, check out our video!

Building Relationships in Marketing 101

To grow your business, you must develop relationships with your clients. Show them you care. How do you do that? Build trust through authenticity. Your story as an entrepreneur matters because it resonates with your clients. Here’s how to do it:

  • Understand that you are not just selling a product

People are never just buying a product; they’re buying a piece of your brand and its story. Brands like Nike have crafted excellent relationships with their customers. Nike’s marketing has evolved to include people of all shapes and sizes, encouraging everyone to “just do it.”

  • Expand your demographics, because everyone matters

On top of that, creating advertisements featuring diverse demographics in different parts of the world can make brand messages feel more relevant to a larger portion of your customer base. A lot of brands utilize this approach to build relationships with customers.

A screenshot of Dove’s official webpage featuring various advertisements with people of different shapes and sizes, highlighting their focus on inclusivity and relationship marketing
Dove has successfully created relationship marketing strategies. It uses advertising campaigns featuring people of all shapes and sizes to sell soap by sharing messages that resonate with their clients.

The Five Levels of Relationship Marketing

  1. Basic Marketing focuses on getting your products or services out there and attracting new customers. Building an initial customer base is where you lay the foundation for future relationships.
  2. In Reactive Marketing, businesses start listening more closely, actively seeking feedback to understand how well they’re meeting customer needs. This stage is when you learn from customers and use their insights to make optimal decisions.
  3. Accountable Marketing takes things a bit further by not just listening but also acting on what customers say. By addressing concerns and regularly checking in, businesses build loyalty, turning one-time buyers into repeat customers with a higher customer lifetime value (CLV).
  4. With Proactive Marketing, businesses engage even more frequently, often making improvements based directly on customer suggestions. This approach not only helps keep customers coming back but also reduces the need to constantly chase new ones, cutting marketing costs.
  5. At the highest level, Partnership Marketing, the relationship becomes a true partnership, often celebrated and recognized publicly. This deep connection turns customers into brand advocates and gives the business a strong competitive advantage by fostering long-term loyalty.

Antavo’s infographics depicting the 5 levels of relationship marketing
Advancing through relationship marketing stages enables businesses to build stronger customer relationships. The illustration outlines relationship marketing from the initial customer contact to customized engagement.

How To Implement Relationship Marketing Strategies

With all that said, let us explore a great example of a loyalty program implemented by an airline in real time:

Turkish Airlines uses relationship marketing strategies that enable brand loyalty. One of their popular strategies is the Miles&Smiles program. Customers earn Miles and Smiles points with each flight they go on in their personal Turkish Airlines Miles&Smiles account, and can purchase a ticket for free when it gets accumulated to a certain required point.

Turkish Airlines’ Miles&Smiles program is designed to make frequent travel rewarding. With each level, it gets better and better, ensuring that passenger loyalty is recognized.

In fact, as of February 2024, Turkish Airlines is the world’s most internationally connected scheduled passenger carrier, according to Simple Flying. The loyalty program plays a huge role in how the airline maintains its international status.

Screenshot of the Turkish Airlines Miles&Smiles program, displaying information about earning and redeeming miles, available rewards, and membership tiers
Overview of the Turkish Airlines Miles&Smiles loyalty program, including details on earning and redeeming miles.

Final Reflections

Customer relationship marketing is not just one-sided, “Oh, I want your money.” We know that customers now are more in tune with sales tactics and funnels,  so you have to stand out from the crowd by being authentic, caring about your customers, and building a relationship with them. You get the value of being able to serve them at a higher level and it benefits both you and the customer. Now, isn’t it time to focus on what truly matters: building lasting relationships with your customers?

If you are looking for the right tool to build a relationship marketing strategy, consider implementing (or revamping) your loyalty program. Our award-winning loyalty technology could help you turn your dream concept into a reality. Book a demo with our experts for a product showcase, or send us your questions as an RFP.

Oh, and don’t forget to get inspired by a truly emotional loyalty program by Benefit Cosmetics — just download our case study and check out the results.

Benefit Cosmetics loyalty program banner from Antavo.
Antavo
Author: Antavo

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