Is Your Brand Attracting the Right People?
Your customers come in two forms – Relational and Transactional.
Each of us approaches every purchase in one of two ways; either relational or transactional. What you purchase will determine which approach you will subconsciously utilize.
For some, gas is a relational purchase in that the station is close to home or office, always clean, polite employees, sometimes cost a little more sometimes not but it doesn’t matter because you are comfortable and secure in your decision. You may even go out of your way to go to that station.
For some people, gas is a transactional purchase especially when the price of gas is high; it’s worth it to drive around to find the best price.
Maybe for you, buying a car is a relational purchase because you want to feel comfortable and secure with the dealer, known him all your life, bought every car there, the rest of the dealers are crooks.
But for others, buying a car is incredibly transactional because they feel that you can’t trust any dealers, they are all crooks, so they have to research on the web, shop around, and take a hard stand in negotiations.
Relational – These customers will be yours for life. They don’t shop around. They aren’t always looking for a way to save a little money. They have a commitment to you because of what your brand represents to them. They feel secure that you are the best value (which has nothing to do with price – it has to do with the perceived price v actual price)
Transactional – All about cost. Will drive all over town to save a little money. Does not have the confidence that you are the best value. Feels it necessary to continue to shop and look for specials or sales. Has no loyalty to you and will bring you less profit for more work.
Position your company, your product and your brands to attract Relational Customers. That’s what Best Buy did a few years ago. They revised the layout of the store, the training of the employees, started asking questions rather than blindly making recommendations, and stopped sending direct marketing to the 80% of customers that made up only 20% of their profit. They started spending their time and marketing on the 20% of the customers that account for 80% of their profit. And it paid off – Big. Just ask Circuit City.
You can do that with your company – Focus on the relationship. Stop attracting the transaction.