Final answer:
Relationship marketing includes six basic elements: customer acquisition, customer retention, customer satisfaction, customer loyalty, customer profitability, and customer lifetime value. These elements form the framework for building sustainable customer relationships that contribute to long-term profitability.
Step-by-step explanation:
According to relationship marketing theory, there are six basic elements integral to building and sustaining profitable customer relationships. These elements include customer acquisition, customer retention, customer satisfaction, customer loyalty, customer profitability, and customer lifetime value. A successful relationship marketing strategy prioritizes long-term customer engagement over short-term sales, leveraging these six elements to create a strong foundation for customer relationships.
Customer acquisition involves attracting new customers to the business. Customer retention is about keeping those customers over time. Ensuring customer satisfaction is crucial as it leads to greater customer loyalty, which in turn, enhances customer profitability. Finally, understanding and maximizing customer lifetime value ensures that the relationship marketing efforts translate into long-term profitability for the company.