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All About Relationship Marketing

The topic for our October SBNG business breakfast meeting in Umina was all about Relationship Marketing. Our presenter was our SBNG Wyong Chapter patron Ted O’Shannessy who, through his business Financial Freeway, has a wealth of experience that he shared with us. It’s impossible to deliver the whole discussion in this post but here are the salient points that are well worth noting.

What is Relationship Marketing?

Relationship marketing is a relationship management strategy designed to encourage strong, lasting connections to your brand. The goal is to turn prospects into customers that generate repeat sales and encourage word-of-mouth promotion (referrals).

 Do you know that:

  • The #1 reason a customer does not come back… they forgot about you.
  • 95% of your happy customers will purchase from a competitor on an impulse.
  • For each month that you don’t communicate with your customers, you lose 10% of your influence.

Two Important points to note:

 

  1. 67% of business today is driven by personal referral and word-of-mouth.

Word of Mouth

 

  1. You need to build your brand and stand out from the crowd

Are you doing the SAME THING as your competitors?

Brand recognition

Differentiate and you will no longer be COMPETING! It’s all about Brand Recognition

 

The 3 Core Principles of Relationship Marketing

 PRINCIPLE #1

Reach out in the spirit of building relationships first (80% of the time: thank you, birthday, holidays) and marketing second (20% of the time).

PRINCIPLE #2

Build your PERSONAL BRAND with:

  • Friendship: develop through texts, calls, cards, and the web (social media, etc.)
  • Celebration: celebrate your clients through pictures, gifts and heartfelt messages
  • Service: offer stellar service that will not be forgotten

PRINCIPLE #3

Master the bridge between high-tech and personal touch by implementing a system that will allow you to stay in touch with your clients and prospects, in a personal way, utilising the convenience of your computer, tablet, and hand held device.

Use a good SYSTEM

 

The cost of retaining an existing customer is 10% the cost of acquiring a new customer.

A 5% improvement in customer retention equals 25-85% improvement in profitability:

  • Reduces marketing costs
  • Easier to upsell existing customers

 

In conclusion; don’t forget the power of networking!

Here are three Powerful Practices that will help you Nurture Business Relationships

  • Meet more people:
    • Add them to your contact manager (use groups)
    • Stay in touch
  • Connect successful people together:
    • Be known as the connector: “I have someone that you need to meet!”
    • This builds your brand exponentially
  • Appreciate more people:
    • Send a nice-to-meet-you card
    • Call them (even if you just get voice mail)
    • Send a small gift
    • Remember their birthday
    • Set up a meeting to learn more about them (in person or by phone)
    • Refer business to them

To learn more about mastering the art of Relationship Marketing have a chat with Ted at our next SBNG Business Breakfast or After Work Networking Meeting or schedule a consultation with Ted by email at ted@financialfreeway.com.au Thank you Ted for a very informative presentation.

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