5 Reasons Why Relationship Marketing is Important in Business

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1.  Build the Know, Like and Trust Factor

It’s a phrase you’ve heard countless times, but are you living it? [Tweet ""To know and to not yet do it, is to not yet know." -Stephen R. Covey "]

To consider the importance of follow through with your know, like and trust factor, start by thinking about your own shopping habits, as a consumer.  These days, online, will you buy from a complete stranger?  Will you purchase something from a random website you’ve landed on?  Will you hire a consultant, coach or assistant that you’ve never heard of, worked with or seen?

Chances are the answer is a big NO.

In today’s age of technology, we have the luxury of getting to know and deciding to trust the person or company behind each purchase.

However, as business owners, this means that we MUST go that extra mile to consistently create our know, like and trust factor.  Tweet this

To do this, it is important that we are consistently active on our social media platforms, website, and offline networking.  For example, in social media, you want to welcome new followers, reply to comments using the commenter’s name, and create relevant content that is both educational and entertaining.

Moreover, test yourself!  Ask a fellow entrepreneur to look at your social media postings and rate them for content, connection and consistency.  The feedback can help you take your Know Like Trust Factor to a whole new level!

2.  Word of Mouth Referrals

When it comes to owning your own business, word of mouth referrals are gold. And, when you focus on building your business’s people-to-people connection, you create that “WOW” factor that gets your customer’s talking. Tweet this

Customers want to feel special and important, because they don’t often get to feel that way in other areas of the life.  This is key to remember because customers rarely purchase products or services solely based on the products intended result.  Deep down, they are also asking themselves, “What will this do for me, or provide for me?” 

The answer isn’t just the product results. The answer includes all of the feelings and desires that come with that product and the results.

By building your people to people business skills, you fulfill those additional needs.  You provide more than just a product or service, you provide an experience.

To create an experience, highlight your customer’s successes, answer questions promptly (whether through social media, email or phone), and respond to concerns instead of reacting to them.  To respond to a concern means that you find a way answer the question that empowers your company AND the person making the concern.

3. Create Business Opportunities

When you build your people-to-people marketing skills, you also open the door to more business opportunities because a personal connection experience leaves a a long-lasting impression. 

That fond memory which you created with your customer will cause you to come to their mind more quickly and frequently.  Thus, when a friend of your customer asks for a business venture referral, your name will be on the tip of your customer’s tongue.

For example, Mari Smith’s early success in 2007 started because she was referred to test a new Facebook app.  Because Mari had built a person-to-person connection, she was referred and her business took off.

4. Stay On Top Of Your Audience’s Needs

Following a person-to-person marketing model can be the difference between being a long-term success and a no-hit wonder! Tweet this

With a person-to-person marketing model you can learn first hand, and at no cost to you, what your audience MOST desires.  For example, free wi-fi in Starbucks was a suggestion from patrons.  Today, because Starbuck’s listened, its shops are always packed with customers who know they can conduct business AND get great coffee.

On the other hand, Borders did not listen to its customers.  The company did not make the necessary changes, improvements and additions to keep people coming back, and as a result, the company has now forever disappeared.

Active listening and listening between the lines are two amazing benefits of person-to-person marketing that can easily get lost in the sea of business if you’re not paying attention. 

5.  Add Your Own Flare

In our new economy where JOB’s are unreliable, more and more people are going into business for themselves.  In order to compete in this new booming, small business market, you have to STAND OUT.  You need to have your own flare.  Be unique.

By instating person-to-person marketing, you can quickly and easily develop your unique style.  It gives you the space to learn about your audience’s needs, and develop trust with your own techniques.  You don’t have to fit yourself to someone else’s business model.  You simply have to be yourself and respond confidently to your customers.

Business has changed since social media has arrived on the scene. Businesses have to change their focus and concentrate on building relationships with people in order to empower their brand and build lasting relationships that will result in long term profits. 

Comments

  1. says

    You are right on with this article, Kim! Building relationships is one of the most strongest aspects of building a solid business! Really like "Add Your Own Flare!" Being unique will help us stand out! Thank you so much!

  2. says

    I believe and know this to be true. I had a friend on social media several years before I shared my business and had built a trusted relationship with them. My business was grow in the arms of trusted friends because they KNEW me. My business was different and people flocked to it! These are such great tips Kim. 

  3. says

    Love this post Kim!  And I love the idea of asking a fellow entrepreneur to take a look at our platforms and share with us what they see!  What an eye opening activity this can be!  I also love the fact that you shared how Mari got started…I had no idea.  Good to know that she too got going based on referrals and word of mouth…an area that I think we sometimes forget to consider!  Thanks again for sharing another great post! 

  4. says

    The perfect list of 5 benefits of relationship marketing – I especially benefit from good, old-fashioned word-of-mouth referrals. I love the clients that come this way. They have been vetted by my community, and there is a sense of friendship that often infuses the working relationship – an enhanced trust.

  5. says

    I love the relationship model. It enriches our whole experience of doing business and offers us the opportunity to contribute to the betterment of friends and others we know in a profound and meaningful way! It is a win all around. I can't think of anything better, can you?

  6. says

    Know Like and Trust are key components for sure! Its easy for people to know and like now….its trust that always seems to be the sticking point for some. If we stay congruent with our message..all will work out the way its suppose to. Let Go and Let God.

  7. says

    Great post Kim! Word of mouth referral is really what keeps me in business. You have to work a little bit harder to at it, but once you have rapport it seems that you do not have to go for a hard sell with referrals.

  8. says

    What a wonderful and insightful post!  I love the idea of relationship marketing.  It makes it easier to refer people that we are familiar with from different interactions.  As always, I enjoyed your helpful tips.  Thanks for sharing Kim!  

  9. says

    Five great points Kim, thanks.  I love stories about relationship marketing.  It's always interesting to see what grows out of a chance meeting or connection when you nurture it.  Too many people have the "what have you done for me lately" attitude.  The fact is, if you just connect with people, give them your best, and focus on building relationships, the great opportunities will come.  And of course, my favorite, put your unique style into it so people will remember you!
    Look what Jennifer just posted..5 Tools to Focus Your Business and Double Your ProfitsMy Profile

  10. Bill Dempsey says

    Thanks for the tips on relationship building which are even more important than ever in today's social environment. I enjoyed the "styaing on top of your audiences needs" and the example between Starbuck's and Borders.

  11. says

    Kim, another great article. The way I look at this is to be forgotten requires no work at all, it's almost automatic. To be remembered requires requires work, sometimes a lot. One of the biggest problems for businesses is they rank high on the forgetability scale. Offline networking is still very valuable, but often avoided, maybe because people feel uncomfortable.

    • Kim GarstKim Garst says

      You are certainly right Steve! Bringing it consistently and being likable is hard work for sure! But oh so necessary in today’s marketplace.

  12. says

    In terms of the word of mouth referrals, it's been very effective for me. I'd rather have less customers and more time for each of them then more customers and give mediocre service. I always say "sell through the room, not just to it."

  13. says

    I’m pretty new to this niche and don’t know too many bloggers here so connecting with other bloggers is quite important to me. In my experience, connecting with people is much harder than actually finding them.

  14. says

    Hi Kim -Great article a few thoughts.

    1. I believe the reality is that there is a market of people who will buy online without the relationship or recognition factor. I do believe VERY much in the “Build the Know, Like and Trust Factor” as we see in companies like Starbucks (great example you mentioned!), Zappos (Creating Happiness), or other places. However maybe the realtionship building has a few facets. Some people need that level of trust more blatant, that much mopre clarity and there are those who are just trying to find the best and quickest or cheapest etc. It’s important for businesses to market to these folks as well to gain their business. Maybe you can say that the “Build the Know, Like and Trust Factor” for them is slightly different.

    2. What are the stats or numbers for people shopping online? I’d love to understand that better.

    3. To possibly sum this up; understanding the market’s needs, how they shop, what their habits are, (there maybe different groups with different shopping habits), STAND OUT, network well, follow up!, and provide excellent WOW! services are all these factors necessary to build a successful business today.
    Look what David Geberer just posted..Weather safety during Autumn months – Keep your child safeMy Profile

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  1. […] with your customers/clients to essentially establish trust and the assurance of continued business (visit Kim Garst’s website for more information on the benefits of social media and relationship marketing in business). […]

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