What is Relationship Marketing?
When I first started my business, I evaluated what I had. No track record, no work product, no customers. What I did have, was a large network of people who believed in me, would support me, and knew my skillset. Those relationships ended up being the best asset I had to start my business, grow that business into more opportunities, and thrive.
Relationship Marketing is the practice of building and cultivating authentic relationships with key contacts in order to leverage the strength of your network for business success. Relationship marketing is about prioritizing who we already have a connection with, rather than solely looking at “new” leads.
Every business relies on new business. Marketers are trying to generate new leads from channels and sales is trying to close new deals. It’s all about the influx of the new. Although there’s vast opportunity (and in many industries, a necessity) in attracting business through new relationships, but there’s a disconnect in tapping into your existing network for repeat and referral business.
Across all industries, it costs anywhere from 5 to 25x more to acquire a new customers versus the cost of cultivating a relationship with an existing customer. And in real estate, law, and consulting, for example – 80% of new opportunities come from your existing network. These are just a couple of the key stats that encompass a wider business movement — enter Relationship Marketing. Relationship Marketing helps you proactively and systematically grow your business through building strong, personal relationships.
The core problem that Relationship Marketing has the power to solve, is that we meet so many people and we forget most of them. While they may have thought highly of us initially, as time goes on, that positive impression fades away, and with it, any business opportunities that could have come from a healthy, active relationship.