Relationship Marketing is a strategy of Customer Relationship Management (CRM) that emphasizes customer retention, satisfaction, and lifetime customer value. Its purpose is to market to current customers versus new customer acquisition through sales and advertising.

The goal of relationship marketing (or customer relationship marketing) is to create strong, even emotional, customer connections to a brand that can lead to ongoing business, free word-of-mouth promotion and information from customers that can generate leads.

Customer relationship marketing (CRM) focuses on building long-term relationships with customers to increase Customer Lifetime Value (CLV), engagement, loyalty, and customer alignment while reducing costs for bigger ROI.

Generic Examples of Relationship Marketing This includes: Thank customers for their business through a social post or surprise gift card. Solicit customer feedback using polls, surveys, and calls, which induces a positive impression that you value customer opinions to create better products/services.

6 characteristics of relationship marketing

• Customer focus.
• Prioritize customer retention.
• Rewards loyal customers.
• Frequent (but relevant and valuable) communication with customers.
• Excellent customer service.
• Account managers for key customers.

There are many levels of relationship marketing: basic, reactive, accountable, proactive and partnership marketing.

Levels of relationship marketing

• Basic marketing. The first step in relationship marketing is to acquire a customer by guiding them through a sale, also referred to as a direct sale.
• Reactive marketing.
• Accountable marketing.
• Proactive marketing.
• Partnership marketing.

But, they refer to two different things. Customer relationship management is a process that aims to keep your customers happy by meeting their needs. On the other hand, customer relationship marketing is the process of attracting new customers by making them aware of your products or services.

The goal of a CRM is to create a better customer experience. When your customers have a good sales experience, you are more likely to experience an increase in sales as a result.

Levels of relationship marketing

• Basic marketing. The first step in relationship marketing is to acquire a customer by guiding them through a sale, also referred to as a direct sale.
• Reactive marketing.
• Accountable marketing.
• Proactive marketing.
• Partnership marketing.

Here are 3 levels of relationship marketing examples, based on where the customer is in their journey:

• Level 1: Customizing to the customer.
• Level 2: Rewarding customer loyalty.
• Level 3: Connecting with high value customers on a personal level.

In the literature, RMO has been conceptualised with the components of trust, bonding, communication, shared value, empathy, and reciprocity [42] .