Relationship Marketing and CRM Define

Relationship Marketing is a key concept often use in the the World of marketing. Most direct response companies are familiar with the term customer relationship management (CRM). So what is CRM? CRM is the process of managing Company’s overall interaction with the prospects and customers. The practice of CRM strategy involved using technology and software to set goal, capture database and manage the overall relationship with the customers and achieve revenue outcome.

The Role of Relationship Marketing in the Corporate World

Relationship Marketing

Relationship Marketing

Relationship marketing is a vital work-in-progress for any organization who wanted to achieve long term profitable growth based on proper customer segmentation.

In fact, every company must have some sort of relationship marketing strategies in place to recruit potential customers, engage the customers with targeted offers, build trust and establish relationship, and eventually turn them into loyal customers and finally lifetime customers.

Process Map of Relationship Marketing:

Customer Acquisition(Prospects) > First Time Customers > Repeat Customers > Lifetime Customers

The Role of CRM in Internet Marketing

In internet marketing, internet marketers often leverage on relationship marketing to establish first connection with its customers by providing them with relevant offers that directly related to their needs and wants via establishing two ways communication dialogue. If practice correctly, a well planned CRM strategy can lead to increase of customer loyalty, repeat sales and also a trustworthy long term relationship with the prospects and the buyers.


The concept of relationship marketing can be best demonstrated in the network marketing industry. As compare to traditional affiliate marketing, network marketer focuses on building long term relationship with its customer or sometimes called referral or downline. That being said in a network marketing environment, your sponsor is responsible for your success, and you are ultimately responsible for teaching others become successful as well. In internet marketing, most internet marketers are using both traditional affiliate marketing and attraction marketing approaches to retain loyal customers.

Transactional Sales in Direct Response Marketing

Transactional sales is a one time offer. Most customers don’t want to make a commitment especially on the first date. Thus it is important to lock in the first relationship by presenting an attractive low end offer and layout on-going backend communication strategies to establish future sales (see funded proposal for further explanation).

Transactional sales is often the first step in bridging the gap and establishing relationship with your customers. Typically, transaction sales is also a low end offer ranging from $30-$100 dollars. It doesn’t incur huge revenue or any form of future revenue but act as a a bridge between sellers and buyers. Many marketer use transactional sales to capture customer data and further establish communication strategy with the customers via various CRM strategies.

Understanding the Pivotal Principal: The 20/80 Rules

It’s also important for you to understand the concept for pivotal principal marketing in CRM. Pivotal stands for the 20/80 rule. That being said 20% of your loyal customers can potentially accounted for 80% of your future revenue. Vice versa, another 80% of “not so frequent” buyers only accounted for 20% of your total sales.

As a network marketer, your role is to keep training the 20% loyal customers. So they become leaders and will potentially recruit more leaders and train more capable sales people for the organization. As for the 80% infrequent buyers. Perhaps 5-10% of them will become loyal customers of yours one day, and 50% will remain as in-frequent buyers and other 10-20% will drop of. The drop of sometimes called “churn” in a marketing term.  I would less worry about the drop off as typically these groups are freebie seekers. They will jump from offers to offers, and really not much you can do about it. If you are only doing affiliate marketing, the same principle apply, your 20% loyal customers will always come back to you once you establish a trustworthy relationship with them.

Matrix is Still Key in Marketing

Many newbies don`t understand the overall matrix approach in relationship marketing, thus they failed online all the time. Generating large volume of leads are always the first step to success. Thereafter you start cultivating and working on building the “cycle of trust” with your audience, and sales will come naturally. If you just started out, I would strongly advise you to find a mentor and learn how to succeed in network marketing or any form of affiliate marketing opportunities.

Recommended Books in Relationship Marketing:

The Evolution of Relationship Marketing

Relationship marketing has evolved overtime. From traditional direct mail marketing, to newsletter marketing and thereafter to digital permission based email marketing. Permission marketing stands for opt in email management. These days, marketers are using social media tools (Facebook, Twitter), and email marketing tools such as Aweber  to manage their CRM strategies. Traditional cold calling, door to door sales still exist in third World countries where internet penetration is still not that high.

Another new form of relationship marketing is e-learning via web conferencing. Many internet marketers and network marketers are now using webinar as a tool to provide both free training and continuous coaching to drive sales revenue.

In Closing: The Future of Relationship Marketing

Relationship marketing is still the future of marketing. Regardless today, tomorrow, even many years down the road. The only different is technology will always change the way how relationship is being managed. I truly believe companies who survive for a long term are those who know how to blend both both offline (brick and mortar) and online (brick and click) strategies and deliver 360 degree branding experience to its end customers.


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