Transactional marketing is a business strategy that focuses on single, point of sale transactions. The emphasis is on maximizing the efficiency and volume of individual sales rather than developing a relationship with the buyer.
Download this free guide
Know Thy Customer: Sales Analytics, Forecasting and New Tools
Customer data analytics can reap significant financial rewards for your organization’s sales, marketing and customer service departments. With so much data to contend with, companies often struggle with making sense of information from customers, public records and external databases. Luckily, we evaluate the newest sales and marketing tools making the process easier for IT managers and sales executives.
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
The transactional approach is based on the four traditional elements of marketing, sometimes referred to as the four P’s :
- Product — Creating a product that meets consumer needs.
- Pricing — Establishing a product price that will be profitable while still attractive to consumers.
- Placement — Establishing an efficient distribution chain for the product.
- Promotion — Creating a visible profile for the product that makes it appealing to customers.
An alternative to the transactional model, relationship marketing. emphasizes customer retention and future interaction with the company. There are advantages and disadvantages to both approaches. According to customer relationship management (CRM ) expert Michael Lowenstein, because transactional marketing does not value customer retention, it can lead to passive, reactive and short-term customer relationships. However, traditional elements of marketing such as those listed above will always be crucial to success.
The main disadvantage of the relationship-based model is its relative expense. However, fostering ongoing interaction with buyers through customer relationship management (CRM ) strategies typically improves return on investment (ROI ) in the long run. Most organizations include components of both approaches in their strategy.
This was last updated in April 2009
churn rate Churn rate is a measure of the number of customers or employees who leave a company during a given period. It can also refer to. See complete definition passenger name record (PNR) A passenger name record (PNR) is a collection of data pertaining to an individual air traveler or a group of individuals. See complete definition reputation risk Reputation risk is the threat to the profitability or sustainability of a business or other entity that is caused by unfavorable. See complete definition