Relationship Marketing is a process that establishes, builds, and keeps an ongoing relationship with customers or potential customers. It requires continuous investment in the customer’s needs, such as understanding their current needs and anticipating future ones for increasingly more complex products.
The goals of Relationship Marketing are to maximize customer lifetime value and decrease cost per customer acquisition. Customer Lifetime Value (CLV) is the total amount of revenue earned from a given customer over the duration of their engagement with your company (in other words over the entire period that they are your customers). Cost Per Acquisition (CPA) is the sum total of all marketing expenses divided by total number of new customers acquired during this time period.