ComputerLink articles by Brian Pitre

Relationship Marketing

"What is the incremental cost to deliver a digital product over the Internet? $0. This simple concept can exemplify why Relationship Marketing through email newsletters and targeted email offers is one of the most cost-effective ways to add one-to-one marketing techniques to your Web initiative. This should not be confused with unsolicited email or better known as email Spam. Email Relationship Marketing should be based on an opt-in, op-out email system that is automated and convenient."

The Internet is causing a major upheaval in classic marketing techniques. Companies can no longer dictate to their customers. With the new information medium of the Internet it is now extremely important to listen to your customers and provide the highest customized solution to their needs. The days of mass marketing are quickly turning to the new days of mass customization of products and services to customers individualized for each customer.

Relationship Marketing is similar to 100 years ago when the quintessential country store was in full prominence. That was an environment where patrons sat around the wood-burning stove and discussed what was going on. This normally included discussions about happenings in their environment, current events, or more importantly, when new products arrived at the store. Further, the store proprietor typically knew what was important to each individual customer.

Back in those days relationship marketing was the norm until the arrival of mass marketing when it fell to the wayside. Now the Internet and this new communication medium have the capability to not only return to Relationship Marketing but to make it flourish greater and grander than ever before.

Why is Relationship Marketing important? If you don’t hear from someone for six months they tend to fade from your memory. On the Web it’s worse than that since your competitors are just a mouse click away and everyone is seeking your attention. According to Nielson/Netratings, the average home Web user visits only 10 sites a week. In eBusiness it’s important to remain fresh in your customers mind and among the sites they visit.

The recent book entitled The Cluetrain Manifesto advocates that Websites should do what sales people do: enter into meaningful conversations with your customers. The simplest way to invite or start those conversations is through an email newsletter. A personalized email newsletter or promotional message is a great way to stay in contact and increase the number of people coming back to your Website.

Relationship Marketing provides a great return-on-investment using the Internet as a great replacement or supplement to the direct sales call. In terms of cost effectiveness, sales calls average $300 to $500 per sales call. Even low cost direct mail has a cost of 32 cents plus duplication and paper cost. All of these methods can be compared to a Relationship Marketing email newsletter with incremental cost of $0.

Objectives, strategy, plan of action, measurement, and corrective action are the key tactical issues utilized in an email relationship marketing campaign. Relationship Marketing is about motivating your prospects to return to your Website; it’s also about creating a community of loyal customers by building a relationship with each individual visitor. Overall this relationship can enhance sales and significantly reduce the cost of customer service within almost any organization.

One of the best ways to utilize Relationship Marketing through an email newsletter is to present special offers or incentives to get customers to return to your site. These could be as simple as purchasing single or multiple items at a discounted price or possibly offering a $10 discount on an order. Many times even without a price concession, sending an update of new products and be a real driver to get customers to your site.

The beauty of an opt-in/opt-out newsletter is the customer gets to initiate the communication or end the communication at their option. This allows them to feel safe and comfortable in the relationship and with the dialog or conversation that ensues. Opt-in newsletters should also mean that you’re not tricking someone into gaining their permission. You have probably noticed it when the opt-in box is pre-checked for your convenience, that tactic will not cut it over the long haul.

It’s interesting that the best newsletters that I participate in are always simple and easy to opt-out of, while the newsletters that I would most like to opt-out of are also the most difficult to stop. This is a key point because if you create a Relationship Marketing strategy that is based upon forcing them to stay in the relationship ultimately translates into something other than a relationship.

Relationship Marketing is simply defined as building stronger two-way communication between customers and vendors. These relationships are where an ongoing conversation should be carried on and allow the individual servicing of the customers needs and desires closely with vendors. Sending an announcement to 10 to 10,000 customers through the Internet, you can begin and maintain these relationships with an incremental cost of $0. If you do not have a relationship with your customer you can bet that someone else will and you will fade from your customers memory.