Relationship versus transactional

I heard a great discussion on the Rob Black radio show yesterday about relationship versus transactional businesses. The gist of if was this. Know which one your business is and operate things accordingly. How do you know which one you are? Here are some guidelines:

Relationship
You rely heavily on word of mouth business.
You see your customers on a regular basis.
You know things about your customers outside of what they purchase from you.
You take the time to make sure your customer gets what they need.
Discounts don’t usually drive more business.
You use the term “client.”

Transcational
Your focus is on getting the sale processed quickly and accurately.
You focus on giving the customer what they ask for not what they need.
Discounts increase the volume of orders.
You use the term “order” and the term “customer.”
You know little about your customer outside of what they purchase from you.

These are just some of the indicators of Relationship versus Transactional. Both of these models work if done correctly. The key is to know which one you are and market your business accordingly. I will go into the marketing aspect of each in future posts.

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2 Responses

  1. I really enjoyed this article! I am doing research for a marketing class and found this in relations to marketing for services. I work in retail but am drawing conclusions about the relationship and experience we are selling as well as the end products. This is because of the emphasis on service rather than products by management at work. Thank you for a simple illustration to many key concepts!

    • Sharon,
      Thanks for reading. I’m glad you found this post useful. The correct marketing approach is a major key to a companies or products success. Best of luck with your class.

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