Customer relationships are like friendships—a handful of good ones can be better than a string of casual ones. Brands that prioritize deepening their customer relationships rather than broadening the number of transactions will see better returns over time.
In marketing circles, this business application of age-old friendship wisdom is called “relationship marketing” or “customer lifetime value marketing”, and it’s a smart strategy for long-term growth. It’s based on cultivating repeat business, leading to a higher customer lifetime value over time. But like any relationship, it takes commitment and healthy communication to thrive.
So, how can you encourage customers to become lifelong advocates that keep coming back for more? We’ve outlined it all below!
What is relationship marketing?
Every company engages in customer relationship management of some kind. You probably do your best to communicate clearly throughout your projects, hit milestones on time, and say “thank you” to your clients when the project’s complete.
Relationship marketing is like the advertising branch of your customer service efforts. It’s marketing that’s created with your most loyal customers in mind—that’s personalized to their needs and makes them feel understood and valued.
Benefits of a relationship marketing strategy
When you’re trying to grow your construction company, it’s common to focus on new sales leads. But your best existing customers—the ones who bring you right-price projects, are easy to work with, pay on time, and recommend you to others—are actually better for your business than new opportunities.
Earn more over time
Some studies estimate that new customer acquisition costs 5 and 25 times more than retaining your current ones. Your current customers already love your construction company. They know you’re experts in your field, and they trust your work, so they’re more likely to return with their next project. Keeping in touch with them is far less expensive than gaining ground with leads who’ve never heard of you before.
Gain customer insights
Cultivating customer retention allows you to gain insights about what your target audience wants from your company. The better you understand your market, the better you’re able to create an informed marketing strategy.
Encourage brand advocacy
When you measure customer lifetime value, remember that loyal customers are brand advocates who recommend you to everyone they know. They’ll tell their colleagues and coworkers about their stellar experience working with your construction company—a far more powerful type of advertising than any social media campaign can deliver.
Relationship marketing tactics we recommend
These marketing tactics are brilliant for encouraging dialogue—the foundation of any good relationship. Use them to strengthen your relationship marketing efforts.
Start social media conversations
Many brands use their social media channels as podiums, making a few announcement-style posts every week, assuming the likes and shares will follow. But at its core, social media should be a place for conversations—two-way exchanges in which each party talks and listens.
Encourage conversations by asking for customer feedback, sharing a poll, or posting a fun fact for the day. Pose questions and reply to the answers, and while you’re at it, have a little fun! It’s not just about growing your list of followers; it’s about showing your company personality and prioritizing your customer relationships.
Rewards and referral programs
Offer customers an incentive to refer others to your construction company. It could be discounted services or an in-kind thank you, like a gift card to a great local restaurant or materials supplier.
Personalize communication
Your best clients should almost never receive generic emails. Personalize every piece of communication you send their way. Rather than sending a thank-you email at the end of a project, mail a handwritten letter with a bottle of their favorite wine. When it’s time to send the monthly newsletter, place them in a separate segment from the rest of your email list and write a personalized note or signature line. Remember their birthday with a short email and ask how their kids’ activities are going. Take every opportunity to show them that they matter. Trust us, they’ll notice—and appreciate—the extra effort.
Build a real-world community
Show your face around town at community events like leadership forums, charitable drives or galas, and fun days out like ballgames. Wherever you go, offer tickets to your best clients—you’ll show them that they’re important to you and remind them that you’re a civic-minded member of their local community.
Content marketing
Keep the quality content coming in your social media channels, newsletters, and blog posts. Good content marketing is more than just a way to brag about your company’s accolades or achievements—it offers real value. Share news stories or stats that give clients insights into the industry. Research blog topics that matter to your customers, and then write blogs that teach and inform. Feature a client case study, but make it about the client, not just about your excellent construction services.
We can help you build strong customer relationships
Good brand-client communication is consistent, but it can be hard to keep up the conversation when you’re on the job site or focused on client calls. That’s where we come in.
We work with construction companies to manage their brands, personalize their email marketing, and create content that strengthens their customer relationships. You can build long-term customer loyalty—without the extra work. Contact us today!