Relationship Marketing and Ethical Standards

Relationship Marketing and Ethical StandardsName
[Institutional Affiliation(s)]Relationship Marketing and Ethical StandardsThe relationship between a retailer and a buyer is essential for marketing success. Loyalty programs reinforce the relationship between the buyer and seller. This essay addresses the benefits of loyalty programs, strategies for improving the relationship, and ethical issues in such relations.
Loyalty programs beneficiaries
Both the customer and retailer benefit from loyalty programs. The retailer benefits by gaining information about their customers’ preferences. The seller also gains through more sales, resulting in higher profits (Corstjens & Lal, 2014). The customers benefit from rewards such as vouchers and customized coupons (Corstjens & Lal, 2014). The programs allow the sellers to propose products and prices for their loyal customers.
A mutually beneficial relationship between buyer and seller is important for successful marketing. The loyalty programs are essential for customer retention. For instance, customers may hold loyalty cards from different retailers but, they remain loyal to a single store (Corstjens & Lal, 2014). The preferred store provides better information in terms of propositions, thereby encouraging the consumers to spend more at the favorite outlet. According to Patel (2017), if the retailer cares about the customers, the shoppers will return the favor by recommending others to the store.
Strategies for better retailer-buyer relationships
Authenticity is essential for improving the relationship.

Being authentic maintains the trust and respect of the customers (Patel, 2017). The customer remains loyal to a dependable brand, thus increasing the sales of the product or service.
Regular communication with customers: the retailer who communicates with shoppers regularly is likely to gain their trust. After an individual becomes a customer, the retailer should call him or her to thank them for preferring to do business with the store (Patel, 2017). The seller may also communicate with the customer while requesting feedback.
Ethical issues in relationship marketing
Discrimination of customers may arise on the basis of the level of expenditure. For instance, a retail store’s loyalty program based on top spenders does not favor low-income individuals (Corstjens & Lal, 2014). The outcome is that the lower spenders may contribute to the store receiving a negative public image.
Introducing loyalty programs that reward customers on a universal basis would assist in reducing the discrimination. For example, a store might introduce a system where regular customers are rewarded regardless of the total amount spent. Rewarding on the basis of frequency will motivate shoppers of all income groups.
References
Corstjens, M., & Lal, R. (2014, February 24). Six myths about customer loyalty programs. Retrieved from https://www.forbes.com/sites/hbsworkingknowledge/2014/02/24/six-myths-about-customer-loyalty-programs/#51f67e9e47cc
Patel, N. (2017, February 6). How to strengthen and deepen the relationship between you and your customers. Retrieved from https://neilpatel.com/blog/how-to-strengthen-and-deepen-the-relationship-between-you-and-your-customers/