It is far cheaper to retain current customers than to acquire new ones. Relationship marketing not only helps increase customer longevity but also increases customer wallet share. That, in turn, increases loyalty and profitability.
What is relationship marketing? Consider this example: 20 lucky co-workers won $55 million in the Texas Lottery. By the time they had verified their win, it was 2 a.m., but the group decided they did not want to risk losing the ticket. So they called up the president of Texas First Bank, who met them in downtown Texas City along with a lawyer and a justice of the peace. On the hood of a pickup, they drew up an official contract agreement, signed it, and stuffed it with the lottery ...