Have you ever noticed a customer purchasing from you only once, without returning or sending referrals? This happens because the responsibility of building and maintaining a relationship lies with you—not the customer—before, during, and especially after the sale.
The most successful fence companies thrive by focusing on long-term relationships instead of single transactions. This approach is called “relationship marketing.”
What is Relationship Marketing?
Relationship marketing involves nurturing long-lasting connections with your clients. It’s about knowing your customers, and them knowing you, creating a sense of loyalty and trust. Think of it as forming a lifelong partnership where both sides benefit.On the other hand, transaction marketing is simply an exchange of money for services. There’s no warmth, no connection—just a business deal. It’s when your customer sees you as a mere salesperson, and you view them as just another buyer. This often results in a one-time sale with no further interactions or considerations for the future.
Why Choose Relationship Marketing?
Because relationship marketing allows you to gain more loyal customers at a lower acquisition cost and with a higher lifetime value. It’s a strategy where the focus is on creating customers for life.
Why Do Customers Leave?
Ever wonder why customers stop buying from you and fail to refer others? It’s not because of product dissatisfaction alone. It’s often because you’ve stopped engaging with them. They leave when they no longer feel valued or appreciated. While some may only need one fence in a lifetime, most have friends or neighbors who might need your services.
Here are some key statistics on why customers leave:
1% pass away
3% move away
5% buy from a friend
9% choose a competitor
14% become dissatisfied with your product
68% feel neglected or that you no longer care
10 Reasons to Stay Connected with Your Customers
Many business owners claim they want to stay close to their customers. However, in reality, they invest more time and money converting prospects into buyers instead of nurturing existing relationships. Here’s why maintaining close ties with your customers is crucial:
They are your primary revenue source: Only customers provide revenue, while suspects and prospects do not. Remember, 100% of your profits come from customers.
Lower costs: It’s more cost-effective to maintain relationships with past customers than to acquire new ones.
Referrals: Customers are your best source for referrals. Even in the digital age, word-of-mouth remains invaluable.
Easier to reach: An updated customer contact list ensures you can reach your clients whenever necessary.
Instant communication: You can connect with customers quickly, making it easier to keep them informed and engaged.
Less price sensitivity: Customers who know and trust you are less likely to be price-sensitive, providing an opportunity for repeat business.
Higher engagement: Communications from you are seen as valuable, unlike unsolicited messages from unknown sources.
Repeat business: Selling to a customer multiple times enhances their lifetime value, and each additional sale becomes more profitable.
Established trust: Trust is a critical factor in purchasing decisions, and customers trust you more than prospects do.
Stay ahead of competitors: If you don’t stay close to your customers, your competitors will. Consistent engagement ensures you maintain a strong relationship.
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