Relationship marketing is a customer relationship management strategy designed to encourage strong, lasting customer connections to a brand. The goal is to generate repeat sales, encourage word-of-mouth promotion and gather customer information.
Traditional marketing focuses on new sales and is transaction-based. A customer may be convinced to select that brand one time, but without a strong relationship marketing strategy, the customer may not come back to that brand in the future. While organizations combine elements of both relationship and transactional marketing, customer relationship marketing is starting to play a more important role for many companies.
For most companies, the acquisition cost for a returning customer is much less than new sales.