One key player for any successful business lies in its ability to retain existing customers. Most companies especially start-ups that don’t have an existing customer database focus on attracting new customers.
However, Marketing now is more focused on digital than ever before. Modern marketers and sales professionals are in a long race of acquiring new customers and increasing brand awareness across newer geographies and scopes of business. While marketing and sales work as a team in growing the business with acquisition efforts, it is imperative to dedicate the same amount of effort and resources in retaining the existing users.
With the long-lasting drastic impact of Covid-19 affecting many businesses, non-essential businesses shut down entirely while even the so-called essential businesses had to adapt to a new market sphere by employing various relationship marketing communication strategies to keep up the communication lines with existing customers.
In today’s customer-centric era, relationship marketing is perceived altruism that entails mutual trust between a business and its customers. With more businesses putting the customer at the center of their marketing strategies, relationship marketing retains its prominence among various organizations that aim to foster brand loyalty and pursue brand ambassadors.
According to Forbes, a business is only as good as the clients it serves, and no business gets too far after losing the clients it has.
What is Relationship Marketing?
Relationship marketing is a way that leverages customer trust to improve customer retention and drive hyper-growth based on one-time acquisition. Having emerged at the forefront of modern-day marketing, relationship marketing is more focused on customers as opposed to traditional marketing which heavily focuses on prospects and new leads.
“Even when you are marketing to your entire audience or customer base, you are still simply speaking to a single human at any given time.” – Ann Handley, Chief Content Officer at MarketingProfs.
Why is Relationship Marketing Important?
Imagine if your business stopped getting repeat customers. Or, if your customers stayed but never referred you to their friends and peers?
Well, this indicates that you might have to go on a scavenger hunt to acquire new customers for your business to sustain itself in the long run.
However, according to Forbes, a 5% increase in customer retention can increase your company’s profitability by a staggering 75%. Also, surveys prove, it would cost just 11% of what it would cost to acquire a new customer.
Every business needs to build “trust” with its customers. Modern businesses are based on existing mutual relationships with their customers. Customers want to feel part of a business and if you can’t keep your customers happy by creating a healthy symmetrical communication relationship, that business would most likely fall apart in time. Even with the best products and business practices, you will still need strong customer relationships to succeed in an increasingly competitive marketplace.
As stated earlier, it is much easier and more cost-effective to retain customers than to acquire new ones. As returning customers have already established trust with the brand or business, they are likely to spend more as well as refer friends and family.
Why Call Center is important for customer retention.
Successful companies understand that a call center’s primary purpose is to retain customers so that they don’t defect to the competition. This means providing service to callers and resolving their problems as well as selling to them.
Yet even the best-run companies often find it difficult to effectively generate sales from their call centers. This common problem certainly makes sense when you consider that callers are primarily seeking answers to questions and resolutions to problems. However, for companies that optimize their call centers for sales, there are big opportunities for increased profits as well as greater customer loyalty
Optimize Your System and Processes
The average call center conversation across all industries is between four and six minutes. During this time, the IVR system has to function properly, and the call center representative must be able to address the customer’s needs. If one component of the process isn’t successful or if a call is simply not resolved, the chance of a sale going right out the window is high. One sobering statistic for any company to consider is that at least 15 percent of customers who don’t get their calls resolved will move on to another company. And these customers will tell on average five others about their less than satisfactory experience.
Before any company can begin to explore opportunities for increasing sales at the call center level, the first step is to ensure that calls are being managed as efficiently and effectively as possible. From the auto-attendant greeting and prompts to the amount of time the customer waits in an on-hold queue, the customer experience needs to be at a high enough level to keep the customer satisfied and engaged. Once a customer gets frustrated by an overly complicated IVR system or has to wait on hold for 10 minutes, the chance of a potential sale is lost.
However, Choosing the right Business Process outsourcing service for your company is as good as hiring the right talents for your company. DelonApps is a leading BPO service company that provides excellent business services to clients across the world. They also provide agile transformation services in Nigeria and own the top classified ads website in Nigeria, as well as a leading job portal in Nigeria.
At DelonApps, our services are tailored to meet your exact needs. While other companies have standard training programs and curriculums, We tailor our programs and curriculum to meet our client’s exact needs. Also taking our client’s culture and behavior and inculcating that into our well-trained customer service staff. This is one major reason why DelonApps is the best call center outsourcing company.
Here are 6 reasons why Telemarketing relationship marketing is critical to your digital business:
1. Build formidable trust:
Relationship marketing builds upon improving the customer experience and puts customer trust at the center of your marketing efforts to foster higher customer loyalty. To build this trust with your customers you must first start thinking like a customer and study your viewing, browsing, and purchase habits, depending upon what industry you operate in.
Assuring the customer your support whenever they need you and by whatever medium possible helps create a sustainable trust factor.
2. Solve mutual problems:
Relationship marketing helps in solving the mutual problems of both the business and the customer. Your customers are the reason your business can leverage monetization opportunities, hitting top-line growth. To actively listen to their concerns, what they like, and what they want to be changed, any specific pain point that has to be addressed and solved.
If more customers are insisting on one thing, perhaps it’s time to pivot. These insights help in iteratively improving your product.
3. Deliver a seamless customer experience:
Customers don’t just want to buy a good product. They want to experience the joy of purchasing and using a good product.
Relationship marketing helps you focus on the customer, rather than on the product or service you offer. It also helps in creating an in-depth profile of customers based on their needs and understanding what exactly they’re looking for. By adopting a more customer-centric approach and focusing on customer relationships, you can align your core strategies and work across teams to meet customer needs, improve satisfaction, and deliver a seamless experience consistently.
4. Strengthens customer advocacy:
In today’s day and age of unreliable paid reviews, your prospects are more likely to believe what they hear directly from the horse’s mouth; i.e. your existing customers!
Let’s face it – not all customers are likely to become super fans of your business. For a customer-centric business, they become your core pillars of growth. It is not easy to build customer advocacy and relationship marketing makes it easier for you. Once a customer starts advocating for you, they’ll become the most profitable source of customer acquisition. They are not just repeated buyers but gradually demonstrate loyalty towards your business.
5. Build a better product:
Did you know that 70% of companies that are considered best in class for customer experience rely on customer feedback? Repeat customers to your business bestow more than just revenue growth.
As your customers continue to do business with your company, they become more closely acquainted with the products and services you offer. This helps your company to get knowledgeable feedback from a customer’s perspective. Converting this valuable and timely feedback into actionable insights helps in building a better product over some time.
6. Lowers Customer Acquisition Costs (CAC)
One of the highest revenue churners is that of a customer’s acquisition. When you leverage relationship marketing and build some viable trust, and engage effectively via nurturing with a multi-channel approach, you can attempt at lowering your customer acquisition costs, since you only spend once on a particular customer.