Relationship Marketing
Effective Strategies for Customer Retention in the Digital Age: A Comparison of Relationship Marketing Models
Few aspects of modern society have been left untouched by the Digital Revolution and the advances that have been made in mobile technologies. Phone books, which were still incredibly useful resources for many just a decade ago, are now almost laughably archaic wastes of paper; our phones themselves can make restaurant recommendations, find a doctor's phone number, and even perform these functions on their own with a simple voice command. Encyclopedias have gone much the same way, with an (over)abundance of information available on the Internet supplying enough variety to make up for, according to many perspectives, the increased need to verify reliability. The very way in which we receive and process information has been changed by such technologies, and this cannot help but be noticed and acted upon by those that depend on the human ability to process information.
It is perhaps not surprising, then, that one of the biggest changes that has occurred as part of the Digital Revolution is to be found in the field of marketing. Information processing is the mechanism by which marketing operates, and which marketers are always trying to engage in more efficient and effective ways. One of the major developments in the marketing arena over the past few decades has been the emergence of what is known as relationship marketing, which is a fundamental shift in the overall approach to marketing. In relationship marketing models, marketing strategies deal with customers over a full time span rather than in discrete moments.
This paper will examine two distinct relationship marketing models, allowing for a demonstration of the perspectives and roles that are common to the grand framework of relationship marketing generally, and which aspects are prone to individual definition and difference based on the specifics of the industry, organization, or situation in which the marketing strategy is being employed. A behavior oriented model, of which there...
From the comparison of these two types of models within the larger relationship marketing framework, and understanding of relationship marketing perspectives and their usefulness in a wide variety of settings can be demonstrating, allowing the reader to more effectively utilize marketing strategies relevant to the current era.
Behavior Oriented Models
One way to view behavior oriented models of relationship marketing is to see the marketing relationship as one that unfolds based on certain triggers -- i.e. customer behaviors (Novo 2011). Simply put, a series of strategies can be developed that encourage an ongoing relationship between the customer and the company offering a good or service, with specific strategies being employed based on specific customer behaviors (Novo 2011; Bruhn 2003). Implementing such a strategy requires a fair amount of knowledge regarding consumer behaviors up front -- what certain actions tend to indicate, and how a specific marketing tactic might affect various consumers, for instance -- and can be highly effective (Peck 1999).
There are several ways in which behavior oriented relationship marketing strategies can be modeled and employed, depending on the specific business and industry needs and operating mechanisms. In some businesses, such as brick-and-mortar retail establishments, the first contact between the business and a customer might actually be a full interaction, whereas in service-oriented businesses with less approachable storefronts creating initial awareness might be the first step (Novo 2011). Outlines of various models and the different phases within them have been produced for a many different types of businesses and marketing perspectives; depending on the business and industry, the customer might potentially become a partner for a time, or perhaps there will be an advocacy relationship, or both might occur (Peck 1999; Buttle 1996). The key in a behavior oriented…
