In traditional or consumer era, customer’s buying decision was based on WHAT the company produced and HOW they produced it.
However in relationship era of marketing customer considers WHO the company actually is and their core values in business when making the buying decision.
Following are the key reasons for relationship marketing to be superior and relevant to the present days.
1. Purpose of the business
In traditional marketing, purpose of every business is generating profits. This core purpose comes into effect in almost every decision the company makes.
A business drives on relationship marketing has a far more greater purpose to be in business than mere profits. Yes they make profits, but the profit is a by-product of achieving their purpose. It’s not that they are trying to convince customer that they are something that they are not. The business live on that purpose and it’s been reflected in all its dealings.
There’s lot to learn from a company like starbucks on how to live on purpose. They reflect their purpose on each and every dealing with their customer and employee.
2. Persuasion vs Authentic relationship
In consumer marketing, it was all about persuading the customer to buy the product. All the marketing efforts and promotional goals were set to create that persuasion in every possible media campaign.
However, in modern marketing, the goal is to create long term authentic relationships with the users.
It’s simply about how many ❤️ reacts your business’s Facebook post gains vs how many 😡 reacts. And this authentic relationship focuses on turning those 👍 into more ❤️ reacts.
A good example for a company who has created an authentic relationship with its customer is Apple. They do not sell on persuasion. They have created that trust in customer’s mind that what ever the product comes from Apple will be sold.
Its pretty sure that more than half of these results where people have expressed their love is not for the apple we eat!
3. Investing in media vs investing in people
Consumer marketing companies heavily focused on promoting their product through media. They used televisions, newspapers and paid millions on advertising their products even with the use of influencers. They even use social media through paid advertisements, Google paid advertisements and many more media to advertise and persuade the buyer.
In Modern marketing, the investment is carried out on people. Basically, your staff and customers. You do not have to persuade your staff to stay with you when they know your purpose and you invest on their growth.
Same with the customers. You don’t have to spend millions on introducing and persuading your products to the customer every time, if you have created an authentic relationship where the customers know your purpose and they trust you.
4.Trust has two meanings
In both attempts to marketing, creating the trust among your customer or user is vital. However, the trust created in consumer marketing is not trust at all as the trust created is simply used to sell a product or a service. See how most insurance brokers exploit the trust to close a sale. That trust is no trust as all.
The word “Trust” in relationship marketing is about creating an authentic trust relationship with the customer. That does not end in a sale. A sale meantime would strengthen it.
5. Customer retention vs acquiring new customers
Whether in consumer marketing or relationship marketing, customer retention and acquiring new customers are both important for a business.
However, the relationship marketing focuses on the existing customers more than the new customers and they invest on the existing customers. The reason here is creating authentic customer relationship is costly and it takes time. Therefore retaining the customers who already trusts you and who know your purpose is priceless.
Traditional marketing is dying due to the transparency that the social media has created in business. You can’t lie to your customer anymore. At least not for a long.
So to move in to the next Era of marketing, it’s vital that your business has a solid purpose for existence and the business and everything in it should live on that purpose.
Then only, the people who love that purpose would get around you to create a sustainable relationship.
Creating a customer centric relationship era branding for a business is not easy as it seems. Because after all, Money can’t buy relationships.