The first and (perhaps) only thing you need to know about relationship marketing

I have a relationship with a person or entity when we know each other, share something in common, and communicate regularly or from time to time. It is that simple. Marketers and technologist for large businesses twist simple realities into complex strategies. Doing so, they create results directly opposite from what they promised.

Relationship Marketing is like a bomb named Peacemaker. Which of these common tactics actually builds real relationships between businesses and their customers?

Frequent shopper discounts (bribes)?

Personalized mailings?

Follow up surveys?

Preferred customer credit cards?

Live-chat help desks?

Birthday card mailings?

The vast majority of so-called relationship marketing programs are repeat customer incentives, not that there is anything wrong with that. But, many big companies, egged on by their technology vendors, pretend that they can mimic the personal relationships that small businesses have with their customers.

With social media via the internet and telephony, companies can build and maintain real relationships with large groups of customers. They can do it cost effectively, if they can tell the difference between cost effective and cheap. To do it right, never forget the true definition of a relationship. Also remember, there are no fast tracks or short cuts to building lasting relationships, in life or in business.

John Ribbler

Tags: CRM, chat, customer, frequent, live, mailings, marketing, personalized, preferred, relationship, More…shopper, surveys, technology, vendors

Comment by Vince Jelenic on July 4, 2009 at 11:16am: John, a great way to put it.

Given the rapid development of "social group" software, such as Ning, socialgo and others, you can expect to see a rapid growth of relationship building online.

As a small retailer, using this technology to extend our reach to develop relationships with our customers, I can attest to it's very very cost effective.

We know that gaining and keeping customer is time-consuming, but a very good investment. We grow our business one customer at a time, and intend to keep them. The new technologies allow us to simplify both processes, and extend them outwards as well.

Compared to previous print ads, mag, radio, or other venues available to small business, this is more akin to the "networking" meetings of our local chamber of commerce, only with customers instead of other businesses. The payoff is huge.

You are correct, no fast track, in fact our own store group has only some 45 active customer members (in 2 months) but they have alredy provided thousands of dollars worth of business. It has cost us time, but no $$ thus far.

For a glimpse of what many small retailers might be doing in a couple of years, have a look at our website at http://greenspot.ning.com . It is built on NING platform, and has proven very flexible.

I understand technologies such as joomla or drupal may be more attuned to this type of group in the future, but they do take some work. Ning was very simple and easy to work with, for now.

I think you'll find that it allows for a very close approximation of "relationship buildling" and selling than most other venues. And the fact we target locals, have phone access, and a B&M store obviously help deepen those relationships even further.

I think with this design we're a few steps ahead of the pack, and years ahead of most of our direct competitors in the antiques category.
NOTE: this is in regards to a small business, not nationwide, no franchise, just mom & pop shop.

cheers
Vince
Green Spot LIVE SHOPPING-Ning
Green Spot Antiques
Antiques Recyclers-Salvage Chic

CAMBRIDGE, Ontario, Canada 43° 26' N 80° 30' W
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Comment by Lisa on July 14, 2010 at 10:27am: It's all about transparency. The idea of marketing is not about talking TO your customer, but talking with the customer. It's gone from communication to conversation thanks to the rise of social media. Great article!