What is Relationship Marketing?
Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions.
10Tier.com specializes in Relationship Marketing both in network and outside of our customer base network. Relationship Marketing is that personal ‘one on one’ marketing, keeping in touch with the customer and building a long term profitable relationship with them. Relationship Marketing differs from other forms of marketing in that it recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages.
Relationship marketing relies upon the communication and acquisition of consumer requirements solely from existing customers in a mutually beneficial exchange usually involving permission for contact by the customer through an “opt-in” system. With particular relevance to customer satisfaction the relative price and quality of goods and services produced or sold through a company alongside customer service generally determine the amount of sales relative to that of competing companies. Although groups targeted through relationship marketing may be large, accuracy of communication and overall relevancy to the customer remains higher than that of direct marketing, but has less potential for generating new leads than direct marketing and is limited to Viral marketing for the acquisition of further customers.
According to Buchanan and Gilles, the increased profitability associated with customer retention efforts occurs because of several factors that occur once a relationship has been established with a customer.
The cost of acquisition occurs only at the beginning of a relationship, so the longer the relationship, the lower the amortized cost.
Account maintenance costs decline as a percentage of total costs (or as a percentage of revenue).
Long-term customers tend to be less inclined to switch, and also tend to be less price sensitive. This can result in stable unit sales volume and increases in dollar-sales volume.
Long-term customers may initiate free word of mouth promotions and referrals.
Long-term customers are more likely to purchase ancillary products and high margin supplemental products.
Customers that stay with you tend to be satisfied with the relationship and are less likely to switch to competitors, making it difficult for competitors to enter the market or gain market share.
Regular customers tend to be less expensive to service because they are familiar with the process, require less “education”, and are consistent in their order placement.
Increased customer retention and loyalty makes the employees’ jobs easier and more satisfying. In turn, happy employees feed back into better customer satisfaction in a virtuous circle.
10Tier.com has built our company on relationship marketing and total word of mouth, referral based promotions. It is YOU who have helped our company and network explode, and this is why we have created the most amazing FREE residual income opportunity ever. With this 10 Tier Residual Income Opportunity we pay out almost 90 percent in total commissions to our Referring Customers!!!
Now if that isn’t one of the best forms of Relationship Marketing we don’t know what is!