5 reasons to Invest in Relationship Marketing

Par 6 August 2021 March 5th, 2024 Aucuns Commentaires
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More than ever, relationship marketing is a sure bet and a pillar of the future for companies. Here are 5 reasons why.

In our recent training courses and white papers, we have presented the infographic below, The 5 pillars of tomorrow’s business. In this article, we focus on the 5th bubble of our graphic, Loyalty and customer data.


Diagram of the five pillars of tomorrow's business


Reason 1 – An opportunity to collect data

Transactional data is the most important type of data. First of all, it helps you get to know your customers. It allows you to:

  • Understanding purchasing behavior
  • Identify customer segments
  • Identify your best customers

You can then use them to enhance the experience of your best customers and identify opportunities to increase revenues. Using RFM (recency, frequency, monetary) analysis, you can develop content and offers targeted to your customers. This personalization increases customer engagement and share-of-wallet.

Without relationship marketing and data, getting to know your customers and connecting with them is almost impossible.

Reason 2 – Increasing competition

Your competition is global. The growth of discounters, online sales and Amazon’s market share now affects all categories of consumer goods.

On the other hand, COVID-19 has led to new buying habits among consumers. These changes in behavior are disrupting brand loyalty: 36% of consumers have tried a new brand1. Among them, 73% intend to continue integrating new brands into their routine. Generation Z and high-income earners are the most likely to switch brands.

The pandemic situation also favors large companies whose online experience and omnichannel strategy are better established.

The crisis has prompted a surge of new activities, with an astonishing 75 percent of US consumers trying a new shopping behavior in response to economic pressures, store closings, and changing priorities.

The effect will be non-reversible. Retaining your existing customers must therefore become a priority. To build customer loyalty, relationship marketing is a powerful ally in the face of fierce competition.

Reason 3 – Maximize your marketing budget

By gradually shifting budgets from acquisition (or even mass communication) to relationship marketing, you can significantly reduce your marketing spend. You can then prioritize marketing investments that offer a higher return on investment (ROI).

Many companies such as SAQ and Starbucks, as well as smaller players, have cut their acquisition budgets by more than 50%.

Reason 4 – The end of third-party cookies

Targeting, retargeting and acquiring new customers are going to become increasingly difficult. Over the past few months, a number of articles have touched on the subject. Recent decisions by Big Five (Google, Apple, Facebook, Amazon and Microsoft) are changing things enormously for marketing managers. While Google will put an end to third-party cookies2, Apple has already enabled its users to choose whether or not to be tracked3.

Without the ability to track individual users, marketing teams face a major challenge in attracting new customers. And that’s not to mention the forthcoming legislation on privacy and the protection of personal information.

These announcements confirm the importance of developing a clear relational strategy. Focus on your existing customers rather than trying to acquire new ones.

Read: End of Third-Party Cookies: How to Adjust Your Marketing Strategy

Bande dessinée sur l'utilisation des cookies par le Marketoonist

Reason 5 – Customer engagement, the new metric

Loyalty programs are increasingly focused on increasing customer engagement. Gone are the days when loyalty programs only gave points or miles on $ purchased!

In our annual LoyalT study, the Engagement Index accounts for 37% of a program’s overall performance. The index measures the member’s subscription to the program’s social media, regular consultation of communications, use of the mobile app, and redemption of points in the last 12 months. Find out more about the study.

There’s a direct correlation between a customer’s level of commitment and their share of wallet. Generally speaking, the more engaged a customer is with a brand, the more purchases they make from that brand. It becomes imperative to develop your brand’s engagement score and improve your customers’ engagement behaviors.

Unlock the future of your business with relationship marketing. Reach out today!


McKinsey&Company, The great consumer shift: Ten charts that show how US shopping behavior is changing, August 2020
LaPresse, Google promet de ne bientôt plus pister les utilisateurs individuellement, March 2021
LaPresse, La nouvelle règle d’Apple appliquée lundi, April 2021

Hans Laroche

Hans Laroche

With over 35 years of experience in relationship marketing, loyalty program management, and development, Hans Laroche contributes to the relationship strategies of numerous companies, including Nespresso, The Royal Canadian Mint, Fido, belairdirect, Cirque du Soleil, Énergir, McKesson, and Desjardins. He has also been sharing his passion with master's students at ESG UQAM and the University of Sherbrooke for 30 years.