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Simply put, relationship marketing puts the word custom back in customer. Seems simple enough doesn't it? Almost a no brainer, but relatively rare in many marketing circles. The focus now is on attracting customers rather than keeping them - a term referred to as offensive marketing. It's slowly changing over time, but how bizarre is that, to not try and keep your existing customers? Relationship marketing will make all the difference in the world, not to mention it can save you and your business money.
Relationship marketing evolved from direct response marketing in the 1960's, emerging in the 80's to become a system that places emphasis on building longer term relationship customers rather than on single transactions. This marketing philosophy means, understanding customer's needs as they go through their buying life cycle. Put another way, offering a range of products/services, as your customers actually need them.
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Why would focusing on your existing customers be more profitable? If you're constantly spending money and resources to land new clients, you aren't paying attention to your loyal customers - the ones who are keeping you in business now. Ignore them at your own peril. This is called churn, or the customers who won't come back to you if you alienate them. Another term for trying to keep customers and increase their loyalty is called defensive marketing. Customers who have already bought something from you are your bread and butter, your key to continued profitability. Bottom line? You NEED them and can't afford to lose them. They're your assets. And you value assets and treat them accordingly. Customer loyalty is worth money to your business, since the cost of keeping an existing customer is only about 10 per cent of the cost of getting a new one. Lesson is? Pay attention to your present customers and your MLM business will have a solid footing for the future.
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