Evaluate the role of data in improving relationship marketing, for managing customer expectations and service excellence
Relationship marketing refers to building a sustainable relationship with the valued clients in the market for the longer period of time. Marketing is an action assisting a company to pinpoint the aspirations, preferences, the needs towards their products’ offering and the company. They involve themselves to collect information and data regarding the customers through surveys, interview, or any other means to satisfy the customers’ need and deliver the most suitable products to satisfy their customers need. However, marketing managers require formulate different tactics to gather the data regarding the prospective markets and make strategies and plans to address those issues and demand as soon as possible and satisfy their customers delivering their needs and demand. Under this competitive business world the more accurate and updated information regarding the target and the overall market the better result the company can produce out of it. As a result, the company is able to deliver the products earlier comparing to their competitors and it helps them get a stronger hand ahead of their rivals to sustain in the market for the longer period of time. This report highlights the process of how the company gathers information regarding their customers and the market, the strategies they may adopt to sustain in the market. Also it will discuss about the benefits of data and information to sustain in the competitive market, and other necessary approaches of Sainsbury.
Definition of Relationship marketing
Relationship marketing refers to building a sustainable relationship with the valued clients in the market for the longer period of time. They try to build a life long relationship with their customers through loyalty and outstanding customers’ support and experience by delivering satisfactory products. It mainly includes the development of operations that are internally connected. It is developed internally.
Significance of Relationship Marketing
Relationship marketing refers to the strategy that helps build relationship for long time among the customers and company. Technology and social media are playing an integral part in building stronger relationship marketing. Branding is another approach to build relationship marketing. The significance of relationship marketing is given below:
- It helps build client loyalty.
- This approach provides necessary marketing idea.
- It reduces the clients’ acquisition cost.
- It helps in marketing method of word of mouth that leads to free marketing.
- It forms brand loyalty to increase loyal customer.
- It provides competitive advantage to the company.
The role of Internet and social media in regards to relationship marketing
Internet has been making our lives easy and comfortable and it is same for business world as well. It is assisting the company to record, evaluate and store numerous records in their particular website and their online business hub. Internet is helping the company gather numerous information regarding target market and the customers at minimum price and time. Internet offers abundant information, which might be helpful for the company. The company gathers crucial information regarding customers through personalized advertisements, games and many more. As a result with the help of Internet the company gets necessary information that helps the business flourish. On the other hand, social media permits the company to make rapport with their customers informally and it strengthens the relationship among them. Previously it was difficult to maintain records of the clients however, now it has become easier and swift doing the same task with the help of social media. The company can get instant information about the customers through social media and be connected with each other easily. It also reduces the advertisement costs and customers’ acquisition expense.
Role of data in developing relationship marketing in Sainsbury
In this massive competition, relationship marketing indeed plays a crucial role to make huge sales, revenue and build a strong and sustainable position in the market. The company tries to offer best offerings and services to retain the customers via relationship market. They also try to build a strong rapport with them and wish to make strong brand value in the eyes of the customers. The strong and effective relationship marketing helps the company to flourish in the market quickly. However, information and relationship marketing are interrelated to each other and the importance of it is undeniable.
Sainsbury is absolutely concerned of this idea and thus they gather information about the market and customers from time to time. They try to figure out the current and prospective trends and demands through the information provided by the customers. So, it could be summarizing the role data in developing relationship marketing as follows:
- In developing relationship marketing, data and information works as the best weapon to contact with the customer. By sharing product information, Sainsbury can easily contact with customer at very initial stage.
- In developing relationship marketing, data and information helps to design product and supply it according customer demand, as the information of recent trends shows the path of new product innovation as well as development of existing product in Sainsburys.
- Sainsbury makes plans and strategies utilizing the data and information they gathered from the market sources and based on that they segment their market, figure out their target market and positioning their offerings in the market. Furthermore, this data helps the company to figure out the customers’ purchase behavior and after sales behavior of customers.
Role of customer data in improving customer expectations and service excellence
Any company is formed with the intention of generating sales and profit and they deliver their offering and services to the customers through satisfying their customers. They gather customers’ data and various clients’ information to develop their customers’ satisfaction through providing excellent client services (Kotler, Armstrong and Amador Araujo, 2017). The benefits Sainsbury gets utilizing customers data are:
- It assists to identify the customers’ profile.
- Customer data helps in identifying the preferences of customer.
- It provides the ideas of customers’ needs and demands.
- Customers’ purchase habit is recognized through the customers’ data.
- Customers sometimes provide necessary feedback to the company regarding their loopholes and so they can amend accordingly and enhance the better service towards the customers.
- Customer data helps the company introduce new products offering and services and segment the market properly.
In present marketing world companies emphasize on the significance of customer data. They got to understand that relationship marketing and data play a crucial role in flourishing the business operation. The company got to understand the customers purchase pattern, their preferences, and their attitude towards products through customer data. Customers sometimes provide necessary feedback on the services and products of the company and Sainsbury may take them into consideration to improve their services and products. Thus, they can improve their customer services and deliver customers satisfaction and generate extensive profits and relish the leading position while the mechanism of relationship marketing would be effective.
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