Relationship marketing involves developing long-term relationships with customers by focusing on their individual needs and providing ongoing support. It requires listening to customers, being available, offering additional resources, personalized communication, respect, honesty, and appreciation to build trust over time through multiple interactions. Technology enables tracking customer data and personalized engagement, while branding helps customers feel an emotional connection to strengthen loyalty.

1. Relationship Marketing Concept, Process and importance
Definition
Marketing activities that are aimed at developing and managing trusting and long-
term relationships with larger customers.
In relationship marketing, customer profile, buying patterns, and history
of contacts are maintained in a sales database, and an account executive is assigned to
one or more major customers to fulfill their needs and maintain the relationship.
Relationship marketing is a marketing approach that acknowledges the importance of
both the buyer and the seller in the marketing process. The core concept is to build
long-term relationships with customers.
Relationship marketing mainly involves the improvement of internal operations. Many
customers leave a company not because they didn't like the product, but because they
were frustrated with the customer service. If a business streamlines its internal
operations to satisfy all service needs of their customers, customers will be happier even
in the face of product problems.

2. Relationship Marketing Concept, Process and importance
 Technology also plays an important role in relationship marketing. The Internet
has made it easier for companies to track, store, analyze and then utilize vast
amounts of information about customers. Customers are offered personalized
ads, special deals, and expedited service as a token of appreciation for their
loyalty.
 Social media sites allow business to engage their customers in an informal and
ongoing way. In the past, it would have been impossible to keep useful records
about every single client, but technology makes it easy for companies to
automate their marketing efforts.
 Branding is the final component of relationship marketing. A company can form
a long-term relationship with a client if that client feels like the brand they
purchase reflects who they are or who they want to be. Customers are less
inclined to switch to a different brand if they think that switch makes a
statement about their identity.

3. Relationship Marketing Concept, Process and importance
Importance of Relationship Marketing
 The recent trend seen in the Organizations across the world is that they are faced
with changing times and the changing economies and business is forcing them to
change themselves too. Organizations today have no option but to change and
evolve. The change has to do with every aspect of business and not limited to any
one aspect of its business. Those who are not able to see the trends and change
themselves are perishing.
 Technology has been the single most important change agent. Technology has
redefined all aspects of business. What we see today is the definitive shift of power
from the Organization into the hands of the Customer.
 Customers today know their position and the power they wield. Especially the
medium of internet has brought the customers closer to the Organisation as well as
to the other Customers. Information, discussions, feedbacks and opinions are now
visible and available to one and all almost instantaneously. Social networking is a
medium that the Organizations cannot afford to ignore.
 The fact that the information and interaction happens on live basis and the customer
reactions can be instantaneous puts a lot of pressure on the Organizations to be on
their guard all the time. Any adverse opinion shared or feedback from a dis-satisfied
customer can spearhead a word of mouth campaign that can harm the Organisation.
Therefore the internet and social network is a double edged sword as far as the
Organizations are concerned. When used effectively this medium can help the
Organization build a relationship with the customer and strengthen that relationship.
This medium helps the Organization to reach out individually to the customer which
may not be possible otherwise

4. Relationship Marketing Concept, Process and importance
 The marketing departments are able to not only communicate and address the
customer individually, with the help of technology and data mining techniques, they
are able to understand the customer’s needs and customize solutions as per the
specific individual needs of the customer. CRM packages and technology become the
enablers to make this happen. Banks, Airlines, Insurance as well as Services like Pizza
hut, Macdonald’s are some of the businesses that have developed effective means
to recognize and communicate with individual customers and thereby build an
emotional connect with the customers.
 Product Companies have begun to use social networking sites effectively as a
platform to engage with customer on technical and product related discussions and
build a community around its products and services. Building relationships in such
situations is easier and more effective.
 The dynamics in the market is changing, thanks to internet. Marketing Managers can
no longer afford to use the traditional methods of engaging and selling to the
customers. Marketing today demands a customer centric approach. Customer is no
longer an entity without a face. Today’s customer is an informed and intelligent
customer who can be reached, who is visible and can be heard and a relationship
with him matters the most to the Organization.
 Relationship Management holds the centre stage to designing Marketing as well as
communication strategies of the organization. It is essential for every student to
understand the dynamics of Relationship Marketing in the present context for this
subject will be the key differentiator for the Organizations in the market place.

5. Relationship Marketing Concept, Process and importance
Steps in relationship marketing
A customer needs to find a business they can feel comfortable with, and trust in, to
provide what they need. Building relationships is a crucial step in this process. It may
take several interactions, whether by e-mail, phone or in person, with a customer to
make a sale. Do not make your customer feel pushed or intimidated into buying.
There are many things you can do to show your potential customer you are
interested in more than just “making the sale.”
1. Focus on Customer Needs – Don’t make your customer feel that all you want is
their money. Take the time to find out what they really need and let them know how
you can fulfill those needs. You have to put your customer’s need for problem
solution above your need to make the sale.
2. Really Listen to Your Prospects – Listening to your prospect is common sense to us
but, unfortunately, in our need to make a sale, we might overlook this. Don’t let
outside distractions take away any of your attention. Reserve 100 percent for your
customer and really listen to what he or she is saying to you. Do not let your feelings
or your ego stand in the way of listening to your customer. Don’t go by the book.
Every customer and situation is different and you have to follow the current
conversation not a script.
3. Be Available – Always, always have your contact information such as e-mail
address, phone number, etc. readily available to give to your prospects and
customers. They need to be comfortable in the fact that they can reach you anytime
they need you.

6. Relationship Marketing Concept, Process and importance
4. Offer Information and Resources – Offer free information, reports, resources,
etc. on your website, blog, or newsletter. Let your customer know you want to
help them with all their needs. Provide a weekly mailing with helpful tips, hints
and information. Show them you are willing to go the extra mile to help.
5. Personalized Greetings – Don’t just take the money and vanish. Stay in touch
with your customers to help build that lasting long-term relationship. Send out
personalized holiday greetings, well wishes etc. with greeting cards, postcards or
e-mail. Even just sending a hand-written thank you note will go a long way in
forming that lasting relationship.
6. Provide Ongoing Support – Many times after a person purchases something,
customers have questions or concerns about that purchase. Make sure you
provide ongoing support by e-mail or phone so their questions and their
concerns can be addressed. Unfortunately, too many times, companies seem to
disappear once the purchase is complete. Don’t let that be you and your
company.
7. Be Honest – In our eagerness to make the sale, we sometimes stretch the
truth or completely abandon it. Never make promises you cannot fulfill or claims
you cannot live up to. If the customer needs something you cannot provide,
discuss possible options or alternatives or refer them to someone who can take
care of their needs. Never make false claims even if you do have good
intentions.

7. Relationship Marketing Concept, Process and importance
8. Show Respect – This goes without saying, no matter how difficult the customer or
situation. There are customers that can certainly try our patience, but you must
never lose your temper with a customer. Talk to them calmly and let them know you
will do what you can to take care of the problem. Show them that you can work
through their crisis and take care of the problem. Your calmness and confidence will
help calm them down and reassure them that all will be well again.
9. Customer Appreciation - Offer your customers discounts, incentives, prizes or
rewards any time you can to show them you appreciate them. There are companies
that have incentives for new customers but nothing for existing customers. This is
definitely not right. You need to show your existing customers you appreciate them
as well. Send coupons, free gifts, etc. Doing so could mean a lot to your customer
and your business.
10. Connect with Your Customer – Make the effort to actually connect with your
customer as a person, not just to make a sale. Gone are the old school ways of
making sales with pushy sales pitches, intimidation, scare tactics, etc. We now know
relationship marketing and mutual respect and trust sets the tone for long-lasting
buyer/seller associations.
Even though you are in business for yourself, think of your customer as your boss.
You work for your customer. You are there for your customer. You need your
customer more than he needs you. Always value your customer and show them they
can value you.