Akshay Sharma
by on March 17, 2021
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Customers are the main focus of relationship marketing whereas the sales are the main focus of transactional marketing. Which among these can be beneficial to the marketers? Now I will describe the difference between relationship marketing and transactional marketing.

Relationship marketing – Here, in order to make the customers’ defined pool to purchase repeatedly, marketers encourage them.

Transactional marketing – Here, basically from a lot of customers, a one-time sale is secured.

Depending on the ideal customers that you have, you can select among these two strategies.

Transactional marketing

What do you understand with the word transaction? It is basically related to sale. Each purchase’s cost, profit per sale and registered sales’ transactions come under this. For taking benefit of point-of-sale promotion, the transactional approach is followed. It is basically marketing mix’s key element.

·       Product – Is your product capable of meeting the needs of the consumer?

·       Price – In order to earn profit from your product, what attractive price will you set?

·       Place – At which location will you sell your items?

·       Promotion – In what manner will you promote your product?

Basically, attracting new customers for increasing the sales, is the aim of transactional marketing. On the other hand, in relationship marketing, the buyer is encouraged to purchase repeatedly.

Relationship marketing

Customer relationship is the basic priority in relationship marketing. Here for repeating the  purchase you need to connect to the customers so as to retain them. A comparatively more time is needed for nurturing this strategy. Increasing training for customer service, social media groups and loyalty programs are included in the strategies of this type of marketing. For making sales in the long term, you need to invest in the marketing efforts of these kinds. Ask a number of questions from yourself at the time of the implementation of this strategy like: Which specific item the customers are searching? Is it valuable to them? Are the customers interested in seeing this ad?

Relationship and transactional marketing together

Customer is the common thing in both the strategies. A good understanding of the customers is necessary in both the strategies. At which place the customers perform the product research? From which place the customers purchase the items? How much is the budget of the customers?

Relationship marketing can nurture the customers who have become part of transactional marketing.

Difference between transactional and relationship marketing

Relationship marketing

·       Retaining and satisfying the customers is the primary aim of this type of marketing

·       Here the customer commitment is high

·       Nature of relationship is long and strong

·       It centers on building trust

·       Its objective is becoming a market supplier that is the preferred one

·       It stresses on customer retention

·       Here the customer contacts frequently

·       It has long term time orientation

Transactional marketing

·       Basically, a single transaction that is off-sale is used for targeting the customers by a firm

·       Here the customer commitment is low

·       Nature of relationship is short and intermittent

·       It centers on undertaking transaction

·       Making the sale is its objective

·       It stresses on increasing new customers

·       Here the customer does not contact frequently

·       It has short term time orientation

Advantages and disadvantages of transactional marketing

The costs associated are low

One of the benefits of transactional marketing is low cost. As compared to a TV marketing campaign running a point-of-sale promotion costs less. Also, it is very easy and simple to run a point-of-sale-promotion.

Emotional attachment is less

Price is the primary concern for a large number of transactional customers. Their connection is for short-term only. They are not so emotionally attached with you or your brand.

Turnover of inventory

By making the product ready-to-use, the cost to hold and manage the inventory gets reduced. This is an advantage.

Advantages and disadvantages of relationship marketing

Good ROI

A 25 % to 95 % increase in profit and 5 % increase in customer retention can be seen in this type of marketing.

Good reviews

Here we connect with the customers so the chances of getting the positive reviews are much more.

A lot of feedback

Because of the connection made with the customers they send you a lot of feedback so as to improve anything.

If you take interest in getting the services of video ads, local SEO, web design, hosting, paid search then it will be good for you to contact a Digital marketing company

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