Relationship marketing is about establishing long term relationship with the customers rather than short or one time affair.So, it involves understanding consumer’s needs throughout his changing life cycle and providing the goods and services accordingly. It’s all about meeting customer’s expectations and converting them into content and loyal customers.

This not only helps in retaining the customers but also in increasing the customer base and in generating repetitive sales and hence in the growth of the business.

Thus relationship marketing is about establishing,  developing and maintaining relationship with the consumers.

Today, motivation of every business is maximization of profit by customer satisfaction.So, customers the end users (decider’s) of any product has become all the more important. They have a key role in the success and so every organization is in the race to attract and attain their customers.

In this global world of cut throat competition, relationship marketing acts as a boon in retaining the customers and achieving success by building trust.Also, because of the limitation of new features and offers on products and services, marketing strategy has become a very common and short lived marketing tool for all brands present in the market and that is why product and service differentiation have become tough. So,in such cases,relationship marketing not only helps to creates new customers but also helps in the retention of old customers which is a very vital step for profit maximization of any business.

In return these satisfied customers also become vital part of the organization’s advertising process through word of mouth.Its seen people generally take opinion from their peer group or friends rather than relying on media advertisements  in case of services and costly goods.Generally,advertisements   of  products or services of different brands/companies claim similar benefits. There is hardly any striking different characteristics between the competitors products or services and hence the decision making becomes difficult for the consumers.So,here in such cases,loyal & satisfied customers influence the buying behaviour of those probable customers through word of mouth.

Its also seen,relationship management requires low cost to keep an old client satisfied rather than in attracting and attaining new clients which involves higher costs.Hence it’s a win-win situation for the organization who believe and practice “relationship marketing”.