RELATIONSHIP MARKETING & CONSUMER BEHAVIOR

RELATIONSHIP MARKETING

Relationship marketing helps the organization or company for better understanding or to respond according to change of customer requirements with time and also to make effective strategies. Word of mouth is the best advertisement that an organization gets and it gets from loyal customers. Relationship marketing also focuses on maintaining customer loyalty. The main goal of relationship marketing is to create trust between the company and customer. The best element of creating relationships is emotions. The main strategies of relationship marketing are:

• Timing
• Frequent communication.
• Rewarding customers for their
• Always ask for feedback and respond for that.
• Customers should be filled with free information.
• Show them their value in every interaction.

ADVANTAGES

• Experience: Many clients have a positive relationship with the company and purchase new products based on previous experiences. This implies that the marketing team’s efforts are limited to attracting new customers.

• Return of customers: According to CMS wire data gathering, returning customers account for 25 percent to 40 percent of a company’s overall

DISADVANTAGES

• Relationships become close: Having a deep relationship with a customer is beneficial, but it should not be so tight that the organization’s managers or other staff begin to avoid dealing with other customers or new ones.
• Return of products: After purchasing a product, a customer’s happiness may In this circumstance, the consumer requests that their product be changed or replaced, even if there are no problems with it. If the organization’s regulations prohibit this, it will have a direct impact on the customer-organization relationship.

CUSTOMER BEHAVIOR ANALYSIS

Customer behavior analysis is the process evaluating or observing the customer interaction with the organization. It helps to motivate and to take decisions considering the customers. It also helps to get feedback and acridly can improve the quality of the product. The research finds that 41% of customers switched to another company due to poor personalization. It also helps predict the value of customers. It reduces the number of customer retention.

ADVANTAGES

• It always helps for a two way communication between company and
• It always helps to get feedback from the customers and according to it the organization or company can increase their quality of product or service.
• It also identifies the demand of the product.
• The increase in the number of customers will also result in the increase of market share, sales and profit.

DISADVANTAGES

• At the start of relationship marketing the company has to invest a huge amount of cash which does not have a guarantee of return due to the customer being the right person to accept or not to accept the company.
• Collecting customer databases is an important process in relationship marketing because the company has to invest funds for new technologies.