"Relationship Marketing" building customer loyalty

Marketing has made a paradigm shift from transactional approach to relationship marketing over the last decade.We are living in a globalized world,where competition has become an unavoidable element of business and customers have become scarce.So scholars have identified that the challenge of a firm is to attract and retain loyal customers.Relationship marketing is a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction,rather than a dominant focus on 'point of sale' transactions(Source:Wikipedia).There is a principle in marketing called "20-80 principle".It says that 20 percent of the customer usually generate 80 percent or more of the company's profit,that means they are the profitable customers who should be carefully treated so that re-purchase will be done by the customer.Relationship marketing aims at building and maintaining long-term relationship with customers .Customer relationship management is a potential weapon for every company now-a-days.Maintaining customer database,wishing them on their memorable days,intimating them about new products n services are the latest practices in the cluttered business environment.When a company do the relationship marketing it touches the emotional aspects of the customers and win the share of mind as well as heart also.So the customer feel so inclined to the particular product or company and turn up as repeat customer.In this way company attains two primary objective.First one to retain the customer and second one to build loyalty among the customer.