Relationship Marketing
Published on Nov 24, 2015
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MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
SHIFT IN FOCUS
QUANTITY OF RELATIONSHIPS VS QUALITY
"WHAT"
Shift the focus from 100,000 moderately loyal customers to 10,000 fiercely loyal fans.
Shift the focus from 100,000 moderately loyal customers to 10,000 fiercely loyal fans.
Photo by kevin dooley
THE INDIE BAND EXAMPLE
- 10k moderately loyal fans
- Spend £10/year through loyalty
- Net £100k revenues
The question that product creators are asking themselves is:
Photo by Robert Bejil Photography
OR
- 1k fiercely loyal fans
- Spend £100/year through loyalty
- Net £100k revenues
Photo by Robert Bejil Photography
THE MARKET SHIFT
"WHY" has the question of quantity vs quality come about...
Relationship marketing has been around a long time. The local grocer, barber etc in the 19th/early 20th centuries.
Advertising:
Then advertising became more popular due to the speed of results.
Relationship marketing was considered time consuming and expensive in contrast to advertising. (Staff costs, time to ROI ETC). Relationship marketing is a long-haul strategy.
Now, with advent of social media, tech and automation. The decrease in cost, increase in tools, platforms available means it's highly accessible once again. I.e it can often be easier and more cost effective to implement than traditional ad based strategies.
Relationship marketing has been around a long time. The local grocer, barber etc in the 19th/early 20th centuries.
Advertising:
Then advertising became more popular due to the speed of results.
Relationship marketing was considered time consuming and expensive in contrast to advertising. (Staff costs, time to ROI ETC). Relationship marketing is a long-haul strategy.
Now, with advent of social media, tech and automation. The decrease in cost, increase in tools, platforms available means it's highly accessible once again. I.e it can often be easier and more cost effective to implement than traditional ad based strategies.
Photo by Justin in SD
CONSUMER STATE
- Ad Fatigue
- Apathy
- Attention Span
Biggest reason for the shift.
Consumer Power:
Consumers have more disposable income and increasing number of choices. (despite economic turbulences),
E,g 1.3m apps in app store: average equates: 1000 choices for 1000 categories
BUT
- ad fatigue -- "switch off" when it comes to ads
- apathy -- tired of being marketed to (telemarketers, canvassers etc)
- attention fatigue : push notifications, overloading inboxes, increasing lifestyle demands
Consumer Power:
Consumers have more disposable income and increasing number of choices. (despite economic turbulences),
E,g 1.3m apps in app store: average equates: 1000 choices for 1000 categories
BUT
- ad fatigue -- "switch off" when it comes to ads
- apathy -- tired of being marketed to (telemarketers, canvassers etc)
- attention fatigue : push notifications, overloading inboxes, increasing lifestyle demands
Photo by vishwaant
Consumers want to feel "connected" and "in-charge" of their choices
Ultimately consumer wants to feel connected.
Photo by naughty_dog
ACCESSIBILITY
Couple that with accessibility
Tools and platforms have made it easier. Eg social media, marketing automation tools, skype etc.
Tools and platforms have made it easier. Eg social media, marketing automation tools, skype etc.
Photo by JD Hancock
BUFFER APP
$100 MONTHLY REVENUE TO $5M ANNUAL IN JUST 4YRS
Starting out with one guy operating from his bedroom in Birmingham UK in 2010
A social media tool for scheduling posts to twitter, fb etc
A social media tool for scheduling posts to twitter, fb etc
MARKHOR
$55K RAISED IN 24HRS ON KICKSTARTER
Founded by a former villager in Pakistan. A hand crafted men's shoe company.
MINDSET
A DIFFERENT APPROACH
How does a business implement this?
It comes down to mindset.
There are a million ways to implement this, but it focuses on two distinct principles
It comes down to mindset.
There are a million ways to implement this, but it focuses on two distinct principles
Photo by amira_a
COMPONENTS OF RELATIONSHIP BUILDING
- Establish Trust
- Demonstrate Integrity
- Provide Value
1. Authenticity. Are you or your product as good as you claim to be? Is your next album as good as you say it is?
2. Be consistent and of good character. Eg robert downey junior (iron man appearances) vs Chris Brown (scandal)
3. Provide Value: delight customers.
2. Be consistent and of good character. Eg robert downey junior (iron man appearances) vs Chris Brown (scandal)
3. Provide Value: delight customers.
Photo by Naomi King
THE PROCESS
- Take an interest
- Shared experiences
- Do nice things for each other
- Give it time
Photo by pareeerica
BENEFITS
- Customer Loyalty
- Increased customer lifetime value
- Referrals through goodwill
- Increased conversion rates
- Level playing field
FROM GOOD TO GREAT
COMPANIES THAT BUILD RELATIONSHIPS INTO THEIR PRODUCT
Remember the Facebook timeline video on their 10th anniversary?
Checks the boxes of all the components of the process.
Checks the boxes of all the components of the process.
Photo by Tom Wolf | Photography
VOLUNTARY CHALLENGE
RELATIONSHIP BUILDING BY COMPANIES YOU LOVE
WHAT ARE THESE COMPANIES DOING TO
- Establish the relationship
- Develop the relationship
- Nurture the relationship
Be specific about the technique they use and why you feel it works.
