The Difference Between Relationship and Transaction Marketing

 




We spend a lot of time talking about relationship marketing, so maybe you're wondering how it differs from a more traditional transactional marketing approach.


Transactional marketing is a marketing effort that is focused entirely and exclusively on making the next sale. It views the sale as a one-time event and seeks to make the largest number of sales possible. You typically use transaction-based marketing by offering discounted services, incentives or cut-off dates. A great example of this is the sales pitch on home-shopping TV channels. The clock is ticking and the salesperson is simply trying to push out as many of the featured items as possible. This form of marketing is designed to make a large number of sales in a short period of time.

 

Relationship marketing is a marketing approach that has broader and longer-term goals than that of transactional marketing. In relationship marketing, you are trying to build a long-lasting rapport with a client. This will enable you to secure sales well into the future by understanding the client’s needs and wants to implement a profitable exchange. While transactional marketing is only focused on the sale, relationship marketing is focused on customer acquisition, satisfaction and retention.


When you're marketing your own services, it might be very tempting to put all your resources into tatics that bring you immediate results. However, research has shown that acquiring new customers can cost five times as much as retaining exsiting ones. So, if you're looking to get the most bang for your marketing buck, think about building relationships with your clients instead of just going for the sale.



3 Ways You're Accidentally Setting Yourself Up for Failure




3 Ways You're Accidentally Setting Yourself Up for Failure

 

Today the real estate market is booming. We're definitely on a high and riding a wave as the economy has started to rebound and more and more Americans are looking at entering the market. I don't want to rain on anyone's parade, but take a moment and ask yourself, how long do you think this wave is going to last? We talk to a lot of REALTORS® every day, and I have to say a lot of them are so caught up in today’s business that they’re not looking to the future! Do yourself a favor and balance your enthusiasm with common sense as you avoid these three pitfalls.

 

1) Running your day by the urgent instead of the important. Being in the real estate industry means that you're busy. Don't get caught in the daily rat race and never make a plan for your day.

 

Fix: Separate the urgent from the important. Start each day by prioritizing your tasks into the following categories:

 

• Important and urgent

• Important but not urgent

• Urgent but not important

• Neither urgent nor important

 

When you see things spelled out for you, your day-to-day work will be much easier to prioritize. If you need help with this, be sure to read this article.

 

2) Not staying in touch. No one purposely loses contact with a past client or a hot prospect. But, according to RIS MEDIA, this is a real problem in today's real estate market.

 

Although "84 percent of people claim they're happy with their REALTOR®, only 25 percent end up using the same REALTOR® down the road when they're ready to buy or sell again. Clearly, it's not the quality of service that's the issue, but rather, the agent's inability to remain front and center." As an agent, you need to make sure people know you're still around. That's the lifeblood of your business.

 

Click here to read the full article.

 

Fix: Look at some form of automated marketing. Face it, you're too busy to run your entire business by yourself. You're already working on closing on homes, scheduling open houses and simply being an outstanding REALTOR®. If you try to do it all, something will fall through the cracks, and it's usually your marketing. Whether it's email, direct mail or social media -- just make sure you're doing something to stay in touch with your sphere of influence. You need to remind them that you're the real estate expert in their community and are here to help them anytime they are looking to buy or sell.

 

3) Not planning for the future. Today the economy and the real estate market is on a high, and things look good. If the real estate industry is your source of income, you need to ask yourself, how long will this high last? Will you be able to make it through a slower market?

 

Fix: Take five minutes a day and ask yourself what have I done today to prepare me for the future? Maybe you enrolled a recent closing into your client follow-up program. Or, you sent a Just Listed postcard mailing to a new neighborhood. Answer this question with a specific item every day. This needs to stay at the forefront of your thoughts.