Disadvantages of Relationship Marketing

Disadvantages of Relationship Marketing

Part 1: Advantages of Relationship Marketing

Today’s Post: Part 2

relationship marketing benefitsRelationship Marketing is a popular marketing strategy with businesses, however, there are diadvantages a business should consider before opting for  relationship marketing approach.

First, using many of the relationship marketing strategies, it can be difficult to measure the effect on sales by individual marketing/customer service initiatives. This style of marketing is a holistic approach where there may be no obvious connection between cause and effect.  This is in contrast to traditional marketing where it isoften possible to just look at your numbers, and see you’re advertising spending and what you are making in sales.

Relationship marketing can be difficult to implement easily for some companies. It may require a shift in mindset for companies immersed in traditional marketing. Consider a company that manufactures toothpaste. A decision is made by the management to take advantage of the social nature of relationship marketing. Contests are held and employees tweet energetically. Yet their plan fails to increase sales.

In this case,  their product is a commodity, not a lifestyle choice. People might care about the general features, such as the flavor, strength, etc, and the company might gain some brand loyalty just from that, however, few will be rushing to follow them, recommend the product, and add the company on Twitter.

Another disadvantage, mainly for smaller businesses, is the time, money, and expertise required to properly set up all the social communication channels and marketing efforts. Hiring dedicated staff to manage social media accounts may simply be beyond the marketing budget. This results in one or more important social channels being neglected. The overall effectiveness suffers as a result.

The recommendations are these:

  • Know your business limits
  • Don’t try to take on more than you can handle
    • Create a Social Media Marketing plan that expands over time
  • Start where it makes the most sense
  • Analyze your numbers.
  • Be willing to cut areas that are not working and move on.

Are you a business thinking Social Media Marketing will bring a great return on your investment? Take some time to do your research and consult with an expert before you invest valuable time, money, and energy. Have a solid strategy and do not be tempted to leap in haphazardly.

Posted in LinkedIn, Relationship Marketing, Social Media and tagged , , , .


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