Relationship marketing can be defined as a deliberate strategy of building a long-term relationship with existing customers in order to promote customer loyalty and/or retention.
It is important to state that Relationship Marketing is aimed at existing customers through a holistic analysis of the existing customer’s purchase behavior in the company’s database through the consistent application of up to date knowledge of individual customer’s patronage of products and services.
Understanding customer behavior has become a crucial factor because of competition, products/services advertisement and contending costs of acquiring social tastes which all target the income or purchasing power of the customer. Relationship Marketing creates a relationship niche, which builds loyalty and retention thereby raising profitability of operations.
The corporate relationship perspective is based on the notion that on top of the value of products and/or services that are exchanged, the existence of a relationship between the two parties create additional value for the customer and also for the supplier or service provider, Gronros, (2004).