Businesses urged to improve relationship marketing efforts

Despite the fact that retaining customers is significantly cheaper than acquiring customers, a new report has revealed that many companies are failing to conduct any relationship marketing with their current customer base, and are thus missing out on the benefits that come with a loyal customer base.

Data from a new report conducted by Econsultancy and Responsys, the Cross-Channel Marketing Report 2013 reveals the significant value of retaining a good customer base, with 70% of respondents agreeing that “it is cheaper to retain than acquire a customer.”

Although 49% of respondents agreed that “pound for pound, we achieve better ROI by investing in relationship over acquisition marketing”, 22% of respondents said they conducted no relationship marketing at all, with only only 30% of companies said they were “very committed” to relationship marketing.

In order to build a brand and retain its status, companies must pay attention to the individuals who have already invested in them previously. This can be carried out cost-effectively via social media promotion and online interaction. Nurture a good followership base, and new customers should come following.