Relationship Marketing as a Business Strategy: How to Acquire and Retain New Clients

Why is Relationship Marketing gaining ground, despite the fact that the content of this activity at first glance seems to duplicate the typical tasks of the entrepreneur?

by Ivan Rizzuto*

Relationship marketing is a new branch of marketing, capable of bringing companies immediate economic value through the acquisition of new clients. It is an activity that, although strategic, is still little known to many entrepreneurs, but widely used by companies in northern Italy, which hire specialized managers or authoritative consultants in this field to develop this activity professionally.

Today the activity of “relationship marketing” is one of the most sought-after functions in marketing for companies that want to rapidly expand their client portfolio. It is an activity that leverages the relationships, partnerships, contacts and business network of specialized managers, who become a sort of “ambassadors of the company” and create qualified interactions for those entrepreneurs who want to meet target clients capable of appreciating the company’s values, its points of differentiation and the quality of its product and service offering.

The mechanism that makes it possible to reach the heart of qualified clients immediately is supported by the distinctive competencies (authority, credibility, professionalism and reliability) of the manager and, above all, by his or her extensive and qualified network of contacts, to whom the values of the company he or she represents are conveyed. The company, in turn, must ensure its own reliability through facts (products, processes, transparency) so as not to disappoint the expectations created by the work of the manager, who will activate two main activities to achieve the goal: partnership marketing and business network.

With the first, the appointed professional will create a network of relationships with other professionals, institutions and entrepreneurs who can help him or her find new contacts of potential clients, useful for the development of any business activity; with the second, the manager will make his or her network of qualified contacts available to the entrepreneur in order to expand the network of direct contacts (potential new clients) or indirect contacts (new possible partners able to introduce us to new potential clients).

Why is Relationship Marketing gaining ground, despite the fact that the content of this activity at first glance seems to duplicate the typical tasks of the entrepreneur? While understanding the importance of developing business relationships, entrepreneurs are often “caught up” in day-to-day operations and end up neglecting relationship-building activities, which instead represent a fundamental piece of the business strategy. Relationship marketing, in fact, is perhaps the most powerful marketing tool available to companies today, and those who adopt it know that there are no longer limits to market development, entry into sales channels, brand awareness and interaction with new clients, especially those once considered “unreachable”.

Relationship Marketing is a strategy focused on creating lasting bonds, trust and loyalty with clients, moving from one-off sales to long-term value, and promoting deep engagement, personalized experiences and ongoing communication to increase the value of the customer life cycle (CLV). The relationship manager helps the entrepreneur better understand customer needs and gather feedback through personalized content and the creation of a community, turning buyers into true “brand advocates”. The manager's work focuses attention on some key aspects of relationship marketing, such as a long-term focus (loyalty of clients over immediate sales), customer centricity (making clients feel valued and connected to the brand); two-way communication (encouraging feedback and using it to improve products and experiences) and emotional connection (building product experience and reducing the churn rate).

By adopting strategies and tactics, Relationship Marketing can help clients stay longer and buy more often, becoming “brand advocates” and amplifying referral generation. In addition, the most loyal clients are also the most understanding in the event of service interruptions or price changes, provided a direct communication channel with the company can be established; therefore, the relationship manager will ensure that company communications can build individual relationships with past and current clients: if clients can easily speak with a company representative without having to make a phone call or send a formal e-mail, they will be more willing to collaborate in resolving problems.

* Strategic marketing consultant, certified CMC business management consultant
Personal web site: http://www.ivanrizzuto.com/