Dr. Craig S. Wright’s latest blog post, “Relationship Marketing,” explores a marketing strategy that yields long-term value rather than short-term successes. The blog takes a look at the advantages of relationship marketing as well as social responsibility and the role each factor plays in creating a successful business-to-customer relationship.
You might be wondering, what is relationship marketing?
Relationship marketing is a marketing strategy that uses direct response marketing campaigns to learn what customers want and uses that information to increase customer retention and satisfaction rather than sales transactions. Or as Dr. Wright explains it:
“It is not fragmented and isolated actions, aimed at short-term results, that bring the best outcomes. Instead, long-term stewardship leads to continuous growth and increased benefits—for shareholders, customers, and the entire community that people live in.”
When successfully executed, relationship marketing leads to more prosperous outcomes than focusing on increasing sales. There is more value in a customer that spends $100 a month for 10 years at a business rather than a customer that makes one $500 transact once every year.
It is important to listen to what customers want and tailoring the business experience in accordance with their feedback.
“In many ways, such a form of stewardship is needed for relationship marketing,” says Dr. Wright, “Even when it costs an organization in the short term, building relationships with customers, by ensuring long-term symbiotic relationships, benefits everybody.”
Social responsibility in business
Dr. Wright goes on to address the role that social responsibility plays in an effective marketing strategy.
“More importantly, research is starting to demonstrate that corporate social responsibility coordinates with an effective marketing strategy (Luu, 2019). Corporations do not need to choose between profitability and accountability; corporations can have both. The marketing of an organization’s position forms an essential component of the strategy, in the sense that it is necessary to market the organization’s strategy and stance to effectively capitalise on the investment in society. If your clients do not know that you are acting responsibly, they won’t treat you as if you’re working conscientiously.”
The companies that see the most success generally publicize their socially responsible contributions. On top of that, many investors are looking for a company to be socially responsible before they invest, and if they are not, they tend to invest with competitors who are. Socially responsible even matters when it comes to employee retention. Recently, Coinbase announced that politics and business are to stay separate from the company’s mission and many employees resigned after that announcement was made.
See also: Dr. Craig Wright’s keynote presentation at CoinGeek Live on How One World Blockchain Powers a New Future for Computing & Cloud System
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