3 Disadvantages of Relationship Marketing

Table of Contents

Disadvantages of Relationship Marketing

Part 1: Advantages of Relationship Marketing

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

1. Difficult to Measure

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 is often possible to just look at your numbers, and see you’re advertising spending and what you are making in sales.

2. Difficult to Implement Easily

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.

3. Difficult to Manage Time, Money, and Expertise

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.

Recommendations:

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 Google Analytics consistently
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?

Analyze the disadvantages of relationship marketing that affect your business. Take some time to do your research before you invest valuable time, money, and energy.

Have a solid strategy. Knowing the challenges present in your business ahead of time so that you will not be tempted to leap in haphazardly into.

We are here to help you create a great Relationship Marketing strategy.

To Your Success,
Terry Loving