Question

Relationship marketing (RM) or retention marketing is very important in the financial services including Takaful industry where most Takaful operators use agents to promote and sell their products and services. Explain briefly what RM is and highlight the variables in RM that Takaful agents should focus on in order to gain the customer’s trust and commitment. Note: Use of diagrams and illustrations would be preferred if deemed applicable.

Answer 1

RM is described as the identification, formation, maintenance, improvement, modification & conclusion of relations with consumers to develop value for consumers and profitability for the firm by a series of relational exchanges which have both a past & a future.

Today, business has become a lot more complicated, & so has the marketing concerned with it. However, its no longer adequate to only market your product. Its also equally essential to keep your existing consumers satisfied. Actually, your existing consumers could end up purchasing more of your commodity provided they are gratified with your service. At a time of intense rivalry and increasingly demanding customers, RM has attracted the attention of both managers & researchers. Academics have concentrated their attention on its scope,& created a conceptual framework aimed at comprehending the nature & value of the relations not just with consumers but also with many other stakeholders. RM is the type of marketing that does exactly this. It stresses on customer retention & continuous gratification instead of only the per-case individual deal. Firms increasingly recognize the significance of interaction with consumers; RM is assuming a dominant place in both marketing concept and practice.