The Goals of Relationship Marketing

In relationship marketing keeping current customers is just as important as attracting new customers. It is far more cost effective to look after the customers you have than to seek new ones, in fact, winning new customers can be up to ten times more expensive. In relationship building the focus shifts to building long term relationships where the customer is encouraged to continue their involvement with the organization. This provides the opportunity for an institution to maximize its interaction and enhance the opportunities for mutual benefit. Generally numerous organizations have established a range of loyalty programs, such as credit points, discounts and “fly-buys” to obtain people into the organizations.

The goal of relationship marketing is to build, maintain, and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. Its goals are to create and maintain permanent relationships between the firm and its customers that are useful for both sides. This is succeed by a mutual symbiosis and fulfillment of promises. Because of, a key objective is to foster customer loyalty in the future despite there are situational influence and marketing efforts having the potential to cause switching behavior.

The aim of relationship marketing is to increase customer loyalty. At the core of this strategy is the concept of establishing a “learning” relationship with each customer. Every interaction you have with a customer is an opportunity to learn about their individual motivations. The original measurability of the web takes this relationship to a new level because it provides greater insight into customer preferences and behavior.

Studies in different industries have shown that the cost of retaining an existing customer is only about 10% of the cost of acquiring a new customer. It can often make economic meaning to pay more attention to existing customers.


  • The cost of acquisition occurs only at the starting of a relationship, so the longer the relationship, the lower the amortized cost.
  • Account maintenance costs decline as a percentage of total costs (or as a percentage of revenue).
  • Sustained customers tend to be less inclined to switch, and tend to be less price sensitive.
  • Sustained customers may initiate free word of mouth promotions and referrals.
  • Sustained customers are more likely to purchase ancillary products and high margin supplemental products.
  • Customers to be satisfied with the relationship and are less likely to switch to competitors, making it difficult for competitors to enter the market or gain market share.
  • Sustained customers tend to be less expensive to service because they are familiar with the process, require less “training”, and are consistent in their order placement.
  • Employees feed back into better customer satisfaction.

Relationship marketing focuses on how to develop, maintain and enhance customer relationships over the customer life cycle rather than on attracting new customers. Repeat business is the lifeblood of any business. Indeed, Drucker (a top management consultant, not marketing) once stated, “That the purpose of a business is to create and keep a customer.” He stressed, as early as 1963, the importance of attracting and keeping customers. He wrote that because the purpose of business is to create and keep customers, it has only two central functions – marketing and innovation. The basic mission of marketing is to attract and retain customers at a profit. From this statement, one can learn that it places customers in a central position in an organization, it places marketing in a central role for the organization’s success and marketing activities should be concerned with the creation, keeping and retention of profitable customers.

The discussion of the evolution of customer relationship demonstrates how a firm’s relationship with its customers might be enhanced as customers move further along this relationship continuum. If the customer’s relationship value increases, the provider is more likely to pursue a closer relationship. The key goal of relationship marketing is to build and maintain a base of committed customers who are profitable for the organization.

Relationship marketing will not automatically lead to stronger customer relationships; rather, customers will exhibit different levels of relationship closeness and strength. In order to be attractive, Relationship marketing strategies should enhance customers’ perceived benefits of engaging in relationships.


  1. Drysdale, L. (n.d.). Relationships Marketing, Principals Association of Australia, pp. 36–37.
  2. Ndubisi, N. O. (2007). Relationship marketing and customer Marketing Intelligence & Planning, Vol. 25, No. 1, pp. 98–106.
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1 Comment

  1. Marketing Mike
    March 27, 22:07 Reply

    I love talk about the strategies and technology of customer marketing as anyone, but I have to applaud your willingess to state that it also has to be done at a profit. I guess, what I’m saying is that for all the potential of digital marketing today, one of the most difficult and underrated components is trying to set the budget. You need significant capital investment for strategies today, but unlimited budgets aren’t the answer, either.

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