Relationship Marketing is an old concept that is getting a lot of attention in the business community. Unfortunately, the focus in the minds of most business people is on marketing and selling when the focus should always be on relationships. Businesses spend large sums of money on newspaper print ads, flyers, newsletters, billboards, television/radio spots or commercials trying to attract new customers with very little Return on Investment (ROI). Mass marketing has its place, but it’s not the end all, be all of an effective marketing strategy. This approach concentrates on attracting a potential customer you have no relationship with.
According to the Gartner Group, 80 percent of your future profits will come from just 20 percent of your existing customers. That means revenue sources businesses are seeking are most likely sitting right under their nose, waiting to be nurtured and cultivated. Let this sink in for a minute, 80 percent of future profits come from just 20 percent of current customers. This is huge and shows most businesses have their focus in the wrong place. Businesses are better off spending their time and money on creating an effective way to retain their current customers with whom they have established a relationship.
Most people think of ROI as Return on Investment. We believe ROI = Relationships Optimize Income. Establishing and maintaining genuine relationships has been and always will be the real currency in life. Building relationships with your customers is crucial to the success of any business. Maintaining those valuable customers is just as important. When you show customers you value them, it creates loyal customers who are more than happy to refer their family and friends to your business which leads to additional customers through referrals.
A simple strategy that implements a system of tangible touches using the Pareto Principle, an 80% relationship building and 20% marketing approach is the most effective way to reach out to customers. Joe Girard, holds the Guinness Book of World Records for selling 13001 cars in a 15 year span and has been recognized the world’s greatest salesman. To become the world’s greatest salesperson, he used what is perhaps the most underused lead-generation technique in the world. Yet it’s probably the most effective way of getting new business. He used greeting cards to simply say Thank You, It was Nice to Meet You and sent birthday cards to maintain great relationships with his customers.
Love is the economics of genuine relationships and therefore the dynamic that lies at the heart of all we do, including business.
Michael & Brenda Sanchez
Life’s Real Currency, LLC