Benefits of relationship marketing

Relationship marketing is aimed at increasing customer loyalty or retention within a current customer base which is highly desirable for the following reasons:

• Effectively no acquisition costs (which are usually far higher than 'maintenance' costs);

• Less need to offer incentives such as discounts, or to give vouchers to maintain custom (although these may be desirable);

• Less price-sensitive (loyal customers are happy with the value they are getting);

• Loyal customers will recommend the company to others ('referrals');

• Individual revenue growth occurs as trust increases.

Rigby et al. (2000) have summarised a study by Mainspring and Bain & Company which evaluated the spending patterns and loyalty of consumers in online retail categories of clothing, groceries and consumer electronics. Their work shows that e-tailers could not

Table 6.1 A summary of different concepts for the transactional and relationship paradigms
Network Marketing Resolutions

Network Marketing Resolutions

Learning About Network Marketing Resolutions Can Have Amazing Benefits For Your Life And Success. How To Set Your Goals And Become The Top DIAMOND This Year.

Get My Free Ebook


Post a comment