The way your business or product is marketed can have a significant impact on the success of your marketing campaign. The choice between the two most popular marketing solutions is driven by the type of business and products you sell and the type of customers you intend to attract. Transactional marketing aims to secure a one-time sale from a large number of customers. In contrast, "relationship marketing" encourages repeat purchases from specific customers.
What is transactional marketing?
This type of marketing aims to provide a sale by turning a potential customer into a real customer. Although this type of marketing leads to skyrocketing revenues, transactions are short-term. This type of marketing strategy is not aimed at gaining customer loyalty but rather at making significant one-time sales that the customer may not repeat in the future.
Transactional marketing involves the 4Ps of marketing (Product, Price, Place, Promotion). Its goal is to offer customers an exceptional quality product at a competitive price. To do this, suitable advertising channels are used to ensure that the product is delivered to customers. Strategies used in transactional marketing include advertising and promotions to create immediate sales. Marketers resort to discounts to persuade the target audience to make a quick sale.
What is relationship marketing?
Unlike transactional marketing, relationship marketing focuses on the relationship with the consumer. The goal is to build a connection that ensures customer retention and repeat purchases. This strategy takes longer to implement, as does the development of all relationships. Relationship marketing is based on the fact that it costs less to retain existing customers than to attract and acquire new customers. Relationship marketing involves loyalty programs, social media groups, and customer service training. This marketing strategy is an investment in sales over the long term.
A good example is a courtesy call-in service from customer service. Simply registering for a survey or customer satisfaction survey strengthens the customer relationship and provides information for sharing within the company. A courtesy visit is an excellent method to increase the quantity and quality of contact between customers and the company and better understand individual customer preferences.
What do transactional marketing and relationship marketing have in common?
First and foremost, it's the customer. Regardless of the strategy you choose, you need to understand your customer. How do they perform product analytics? What platforms do they shop through? How much of a budget do they have? Buyers attracted using transactional marketing should be supported with relationship marketing. The buyers you attract will then want to stay. On the flip side, the buyers you attract using relationship marketing should be encouraged to make a new purchase using a discount. You can see that both of these strategies are mutually reinforcing.
Differences between transactional marketing and relationship marketing
As stated earlier, the difference between these two strategies will be that one focuses on sales and the other focuses on the customer. These additional aspects will give you a clear understanding of how each strategy differs and what makes it unique in its way:
-Transactional marketing is based on a single selling formula and focuses on short-term gains.
-Relationship marketing promotes customer loyalty and improves the way business is organized for long-term customer retention.
-In transactional marketing, the customer interaction process is minimal, while in relationship marketing, it is constant.
-Transactional marketing efforts focus on increasing sales, whereas relationship marketing efforts focus on the customer.
Transactional marketing efforts lead to low levels of customer commitment, whereas relationship-focused actions elicit higher levels of responsibility.
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