These are two big words like transactional marketing versus
relationship marketing? I can barely get up out of my mouth. So what's the
difference and why do you need to know? Check in with the Six Figure Mastermind,
watch this video and you're going to find out exactly what you need.
So what's the difference between transactional marketing and relationship
marketing? They're really big words so what do they mean? Okay, let's start out
first with transactional marketing. Transactional marketing is purely
product based so if you think about when you ever shop on Amazon, you're
shopping for products, you don't know who is behind them and like I've been on the
back end of Amazon, I know what it's like. Amazon isn't just one company sending
out a bunch of products, they used to be back in the day it was just them in
their books but Amazon does everything now. So Amazon is full of good examples
of transactional marketing. You don't know really who are you buying from. You
know you're buying from Amazon but Amazon has possibly hundreds of
thousands of sellers all over the world who are providing their products to a
central warehouse or a series of central warehouses and then you're buying from
those warehouses. Transactional marketing, there's oftentimes a middleman involved
and it really doesn't require a lot of afterthought or a lot of follow-up after
the transaction has been made, it's not very emotional either. When you go into the
purchase, it's I need that, I'm going to buy that. I need groceries at the grocery
store, I'm going to go get them .I need toilet paper, I'm out. Well maybe that
sometimes can be emotional, hopefully not. Too emotionally scarring. You just go get
some when you're out and you bring it home and you've made a transaction. I
exchanged my money for a good or a service and I got the good or service on
my way all done, that's transactional marketing. Relationship marketing is a
reflection of that. Now every transaction will have some kind of relationship to
it. Think about Apple products for example, Apple is a magnificent example
of an emotional transactional based experience. People love their brand
loyalty to Apple, they've created this masterfully because all of their
products sync with each other so well, they're not compatible with other
products always, sometimes they are sometimes or not but they always have
that cool little special feature that just Apple products have and that feels
aesthetically good when we use it and Apple has really taken transactional
marketing and put a little bit of relationship in there but it's really
ship with you in the product, not with you in a person. Relationship marketing
deals more with the one-on-one, how you feel about me as a living breathing
human being, how you feel about the person that is transacting whatever
product that you're serving, that is relationship marketing and people make
decisions based on how they feel about the person that's selling the product or
service, not necessarily just the product or service on its own. Word-of-mouth is
a great example of relationship marketing. If you've ever had a friend
recommended a movie, if you ever had a friend recommend a book, if you've ever
had a friend recommend anything to you, you're more likely to take their
recommendation because you have a relationship with them, you have a
relationship of trust with this person. Maybe you don't, maybe someone
recommend something to you and because of who that person is
you would never buy anything they recommended because that's the kind of
relationship that you have, that's relationship marketing trying to reverse.
Transactional marketing has everything to do with the actual product or service,
relationship has everything to do about the relationship that you have with the
person that's selling it to you. Let's get into more detail. People are never
buying a product. If you're an entrepreneur and you think people are
here to buy your product or you think people are here to subscribe to your
service or you think people are here to buy your program, you're mistaken. I'm
just going to say it.. Every transaction has an element of relationship to it,
they're here to buy a piece of you, they're here to buy a piece of your
story, they're here to buy a piece of your lifestyle, that's why people have
Instagram accounts, that's why there is lifestyle photography. I mean, think
about it, think about a brand that has done an excellent relationship building
a rapport with you even though you've never met the creators of the brand. The
first one that comes to my mind is Nike. Nike has a really excellent and superbly
crafted relationship, here's what I mean by that, think of any Nike commercial in
fact, to think about Nike logo, it's just do it, that's their thing, it's just do it
and their marketing over the years has reflected that, it's more than just
do it and five years ago, all of their commercials
would have been the big strong guys who are obviously already athletic sporting.
Nike apparel, Michael Jordan, classic example. Now they're kind of moving into
a different vein, now they're trying to get people who you know have a
relationship with people. They know they've already got a relationship with
the already fit, the already healthy, they are already athletic but now Nike is
moving into a different arena. They say okay, we've got this relationship with
these people, they know our products are great and they're using them you
regularly but what about the people that don't feel like they're athletic. What
about the people that are overweight? What about the people where it's hard
for them to get up and go running in the morning? What about the people that it's
difficult for them to find clothes that fit because of their size,
maybe with how big or how small that they are. Let's have a relationship with
those people. So what if Nike do? They started creating advertisements with
that demographic of people, they started creating advertisements and films with
people who were overweight wearing Nike apparel running down the road, sweat
pouring down and they were so inspirational to us because it was more
than just do it having already done, it it was just do it because it's worth it.
That's the relationship that Nike build very intelligently so and don't pretend
that you know, they're trying to pull one over on us. I mean, I actually think it's
very very cool that Nike is saying hey, you know, yeah, we're selling sports
apparel, we're selling water bottles, we're selling shoes, we're selling
selling tank tops and shorts but we know this is for everybody and we're
encouraging people, we're encouraging people to get up and go and do it, not
just because you know you can but especially because you know you can't. A
lot of top brands are doing that now. Nike's in it. Dove has done a great job
doing this. Dove has created an excellent relationship marketing with the
transaction. Dove sells soap, that's what they do, they also sell chocolate but I
don't know if they're the same company. Either way they have a relationship with
their clients. I mean, Dove chocolates it's always like, oh, I'm so hungry, I want
a chocolate, I'm a fancy lady or I'm a mom who just wants to take a chocolate
break and I have crazy kids banging down the door, okay. I've did relationship with
both of them. The Dove soaps, they've got a relationships with. I mean, you go on
Dove's website, you'll see an excellent ad campaign with all shapes, all sizes,
everyone gets healthy skin because they've developed that kind of a
relationship even through just their commercials. I've never met the Dove
executive, I've never met the marketing team, I've never met that I know of
anyone that works for Dove but I do know that through their relationship building
that they're using that kind of marketing to sell me soap. They've built a
relationship and those relationships count and even better if you're an
entrepreneur on the street that can develop a relationship. I want to give
you a prime example of this. Politician. Yeah, we totally just went to politics.
Politics or politicians are all about selling their ideas, selling themselves
as a being, they're their salesmen. Make no doubt about it, Donald Trump's the
perfect example. Love him or hate him, I don't want to start a discussion here. He
was a Salesman and he was successful in getting the people to buy him or vote
for him, okay. I want to tell you about the president of Costa Rica. I went down
to Costa Rica just a few months ago and I had an opportunity to tour the city
before any of the rest of my group got there so I hopped on the bus with a
bunch of people who were travelling from all over the world and we just hopped on
a tour bus together and started touring the city and we stopped by this very
nondescript condominium and it was you know, there were nice gates outside, your
typical spanish-style house and you know, it didn't really stick out and I kind of
wondered why are we stopped here? Why are we looking at this? And our driver, he
said, "Hey, do you see that that white SUV across the street?" and I looked
over, yeah, it's got tinted windows, it looks you know, like your standard
undercover vehicle. He's like "Well that vehicles over there because president of
Costa Rica lives in these condos." I thought you've got to be kidding me
and I immediately am in my mind to the the White House and how many yards are
between me and the front door with how many laser pointed rifles could be
pointed at me, should I attempt to traverse that distance on authorize and
I'm thinking, okay, that's interesting. Why? And the driver went on to say that the
president of Costa Rica didn't want to have to move when he became president
and he said why should I live in a more opulent and more prestigious home than
any of the people whom I serve? And he we can find him walking on the streets of
Costa Rica, you can find him in the barber shop, you can find him in the
grocery store just with the people being with the people.
Why? It's because he has a relationship with them, because he wanted to know what
it was like as a president to be in and among the people. That's the kind of
relationship marketing I want to exemplify. I'm in the trenches
right along with my clients and if you want to have your business grow and
explode, yeah, you've got to know how to transact,
you've gotten half the point-of-sale systems, you got have all that setup but
you won't have any use for them if you don't have the relationships with your
clients in the first place so develop those relationships, put yourself in your
clients shoes, get to know them. Charisma matters, authenticity matters,
vulnerability matters. Your story as an entrepreneur matters because that's the
story your clients are living through right now. So now you know even if you
have a transaction, it's really all about relationships. You know, it's all
about cultivating those, it's about bringing people together, it's about
helping people feel good about their choices and what they're doing and
working with you bottom line. So hit the subscribe button, we're going to be churning
out more content on a daily basis. I look forward to seeing more of you. If you
have any questions, fill in the comments below and we'll get with you.
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