Final answer:
The Saab dealership's customer engagement activities are an example of relationship management, which aims to retain customers by fostering a long-term positive relationship through personalized interaction and valuable information.
Step-by-step explanation:
The actions of the Saab dealership in Toronto, such as phoning customers with invitations to events, sending out mailings with car maintenance information, and distributing a high-quality Saab magazine, can be categorized as an example of relationship management. Relationship management is the strategy of maintaining a positive and engaged relationship with customers through various touchpoints and interactions. It focuses on long-term customer engagement and retention rather than just short-term sales. This strategy can involve personalized communication, rewards, exclusive offers, or valuable information to create a strong, ongoing connection with customers.
Relationship management is integral to customer retention as it builds trust and a sense of value in the customer's association with the brand. Sending out newsletters, magazines, and event invitations keeps customers informed, appreciated, and connected to the dealership, which can lead to increased customer loyalty and repeat business. These actions go beyond just providing a service or product; they create an ongoing dialogue and a community feel around the brand.