previous icon Back to blog
Jan 31, 2022
5 minutes read

5 Examples of Relationship Marketing Done Right

One of the best ways to boost customer retention is to shift your focus to relationship marketing. Relationship marketing is about building lasting customer connections rather than focusing on transactional marketing and one-off sales. This blog will define relationship marketing and share five relationship marketing examples to inspire you.

I. What Is Relationship Marketing?

Relationship marketing is a business strategy that builds and nurtures long-term personal connections between your brand and your existing customers, increasing engagement, satisfaction, and loyalty.

With increasingly expensive customer acquisition costs, customer retention is one of the most critical factors in a company’s success. According to Semrush, the probability of selling to an existing customer is between 60% and 70%. In contrast, the likelihood of selling products or services to a new customer is only between 5% to 20%. 

Relationship marketing is a force multiplier. How? Quality customer experiences deepen the trust and devotion customers have for your brand. Interacting with repeat customers through ongoing conversations creates bonds that competitors struggle to break. The result: Long-term customers who increase your CLV (customer lifetime value) exponentially and even generate new leads. 

First, let’s dive in and showcase five businesses that are hitting it out of the park.

II. 5 Relationship Marketing Examples

1. Patagonia 

Patagonia has created a brand identity that solidifies its standing as an environmentally conscious business, appealing to consumers who value using organic and recycled materials. They have proven it by encouraging customers to purchase used Patagonia clothing rather than new. They have also offered customers clothing repairs from a mobile repair shop, mending broken zippers and tears and offering DIY solutions -- without charge. 

Like-minded consumers believe that Patagonia stands for a higher purpose than turning a profit and are inspired to support a brand that concretely demonstrates their values.

2. Starbucks 

Starbucks helped make getting a cup of coffee what it is today. Starbucks is a cultural icon as it is a business, showcasing its ubiquitous cups in social media posts on Instagram, Facebook, Twitter, and Pinterest. For example, Starbucks’ tagline on Pinterest reads, “Inspiring and nurturing the human spirit – one person, one cup, and one neighborhood at a time.”

Starbucks sends frequent emails to their customers, informing them of offers and product launches. They also share customer content on their social channels. Their tight-knit community often lines up before sunrise for the chance of obtaining their latest holiday-themed cup or specialty beverage.

3. GE 

General Electric (GE) is a multinational conglomerate whose tagline is “building a world that works.” GE has set itself apart from traditional energy companies by positioning itself as an innovator, thought leader, and sustainable technology company. In addition, GE has focused on employee participation and compelling storytelling to craft an identity as a global content marketer.

Their GE Reports website is an excellent example of content marketing, including podcasts, articles, videos, and infographics that help build strong relationships with your customers. They achieve their goal of informing and educating their shareholders and the public about relevant topics through curated content for segmented markets.

 4. American Express 

American Express (Amex) has successfully mastered the customer journey. Its strategic marketing campaign approach encompasses account applications, onboarding, engagement, cross-selling, and referrals, making it one of the most successful credit card businesses today. 

Their account opening process is customer-friendly and straightforward, taking only 30 seconds to complete. New customers receive bonuses via direct mail, including discounts and travel perks. In addition, their multichannel “Share the Love” referral program (promoted online, on social media, and via email marketing) is strong, granting the referring party 15,000 bonus points.

5. T-Mobile

To capture the elusive millennial market, T-Mobile began offering consumers mobile service without contracts. This approach (unorthodox for telecom carriers) proved wildly successful, improving customer satisfaction, engagement, and referral business.

T-Mobile provided weekly thank-you gifts and customer rewards to participants. In addition, they focused on their mobile app, offering reward redemption opportunities and targeted offers that captured customers’ attention and enhanced engagement. According to Nielsen, T-Mobile went from Number Four to Number One in customer service satisfaction as a result.

III. Benefits of Relationship Marketing

Now that you’ve seen relationship marketing examples in the wild, let’s discuss some of its benefits.

Higher Customer Retention

Relationship marketing turns potential customers into happy, loyal customers who buy more often. Studies show that fully engaged customers spend 23% more than unengaged customers.

Increased Referrals

Happy customers want their friends to be happy too. 92% of consumers trust referrals from people they know, and customers referred by a friend are four times more likely to buy.

Even in this digital age, word of mouth is priceless, and you should treat any customer who refers their friends or family to your business like royalty.

Improved ROI

Return on investment is a key performance indicator (KPI) that often determines a marketing strategy's success or failure. Increased retention drives customer acquisition costs down, making more marketing dollars available for long-term relationship marketing efforts.

Increased Competitive Advantage

If you think everyone has realized the value of relationship marketing, think again. There are still vast opportunities to use this powerful tool to gain a foothold in a very competitive marketplace. Building quality relationships can help you stand apart in the sea of sameness, cementing long-term success.

Enhanced Brand Reputation

Happy customers are your most important asset. Satisfied customers often use social media platforms to talk about their experience with companies, both good and bad. Inspiring your customers to sing your praises enhances your brand reputation, leading to new customers and repeat sales.

How to Get Started With Relationship Marketing

Ready to get started in relationship marketing? CM.com’s Mobile Marketing Cloud enables you to reach your customers on their favorite mobile channels, sending hyper-personalized messages that resonate and spark engagement.

Mobile Marketing Cloud is an omnichannel marketing platform built specifically for B2C marketers. It provides the user-friendly tools you need to create smart audience segments and dynamic workflows for hyper-personalized mobile campaigns, kick-starting your relationship marketing strategy.

Boost Your Relationship Marketing Strategy With Mobile Marketing Cloud.

Was this article interesting?
Share it!

Latest Articles

qr
Oct 07, 2024 • Ticketing

The Impact of QR Donations on Museums

With the VAT increase from 9% to 21%, museums are facing a significant challenge just as they begin to recover from the COVID-19 crisis. Rising ticket prices may make it harder for people to visit. Fortunately, technology provides opportunities for generating additional revenue, such as through donations. Discover how museums are strategically adapting to these changes.

whatsapp-business-blog_image-deals-offers
Sep 11, 2024 • WhatsApp

Increase Conversion With Promotional Messages on WhatsApp

In an age of mass marketing, as well as constant TV, internet and email advertising, it’s safe to say that peak sales periods like Black Friday and the Holiday Season can be something of an overwhelming experience for consumers around the world. Feeling overwhelmed by irrelevant information from companies that doesn't match their personal needs and desires, it's no surprise people might want to switch off their phones, radios, and televisions, tuning out all forms of marketing until the sales peak season is over. As an eCommerce player, you should always be looking to avoid this by diversifying and personalizing your marketing strategy in a way that suits your customers needs and sensibilities.

unlock-communication-excellence-with-cpaas
Jun 06, 2024 • CM.com

Unlock Communication Excellence With CPaaS

Diving deeper into CM.com's CPaaS approach in empowering business users to unlock Communication Excellence - a guest article by Quadrant Knowledge Solutions, a global advisory and consulting firm focused on helping clients in achieving business transformation goals with Strategic Business and Growth advisory services.

blog-email-open-rates
Aug 15, 2023 • Email

How to Skyrocket Your Email Open Rates

Email marketing has come a long way since the first campaign was sent in 1978, and it remains one of the most valuable tools in the modern marketer’s business strategy. But email marketing is sometimes dismissed as ‘spamming’ people and all your hard work crafting targeted, relevant, and timely emails to your customers or prospects will be useless if you don’t do everything you can to optimize email deliverability.

dutch-grand-prix-marketing
Jun 30, 2023 • Marketing

How to Boost Fan Engagement - A Formula 1 Heineken Dutch Grand Prix Use Case

What’s so great about sports is that it connects all kinds of people. On the other hand, knowing no two sports fans are alike makes it challenging for sports organizations to address different fan segments. The organization behind the Formula 1 Heineken Dutch Grand Prix acknowledged this challenge and didn’t just pack the CM.com Circuit Zandvoort with their best fans. Instead, they’ve managed to enhance their fan experience right at their first racing event in 35 years. What’s more, they keep improving fan engagement year on year. Curious to know how? We’ll share five insider tips on how the Dutch Grand Prix enhanced its fan engagement before, during, and after the race.

instagram-marketing-messages-feature1
May 19, 2023 • Conversational Commerce

Introducing Instagram Marketing Messages

Today, more and more customer engagement happens on social media. And with good reason. Personalized messages on the favorite messaging apps of your customers can truly benefit your brand awareness. Instagram's new Marketing Messages feature offers a great marketing tool to be visible where your customers are and re-engage them to boost those conversion rates.

Live 11 mobile marketing ideas for events
May 10, 2023 • Live

11 Ways to Make Your Event Stand Out With Mobile Marketing

Festivals are bigger than ever; the market is thriving, and people love listening to live music in a space where they feel free to let go and enjoy the atmosphere with like-minded people. While this is undoubtedly a good thing for organizers, with this popularity comes much competition. Organizers, therefore, need to think of creative ways to stand out. One way is by boosting their mobile marketing offering. CM.com offers the solution; discover here 11 examples of how you can apply this to your event.

Mobile Marketing Cloud conversational marketing blog
Mar 21, 2023 • Marketing

Engagement where it matters: the CM.com take on conversational marketing and how it’s changing

Look at most definitions of conversational marketing, and it’s not clear what all the excitement’s about. “Engaging customers through dialogue”, “interacting with people via real-time”, “two-way communication”, “putting the focus on interactions using social media messaging channels”. Isn’t that what marketers have been doing for years?

whatsapp-business-blog_image-newsletters-announcements
Jan 11, 2023 • WhatsApp

What Is a WhatsApp Newsletter and How Does It Work?

WhatsApp newsletters are messages that can be sent from a brand's WhatsApp business account to a specific audience of customers with information that's relevant to them. You can send people special offers, exclusive discounts, and new product announcements. You can also personalize these offers based on special events like holidays and birthdays, or annual promotions like Black Friday and Cyber Monday.

Is this region a better fit for you?
Go
close icon