What’s The Difference Between Transactional and Relational Marketing?

What’s The Difference Between Transactional and Relational Marketing?

 Let’s say you’re building a marketing plan to sell garden hoses. Your marketing strategies and sales tactics are straightforward transactions. When you sell a product, your customer shops for price and options- length, thickness, type of material, etc.

There is little or no emotional involvement in the sale. The sale is a direct transaction using traditional sales techniques.

However, if you provide personal or professional services such as financial planning, tutoring, or any kind of consulting, your marketing and sales tactics are relational, not transactional. Relational selling requires you to make a connection with potential clients or customers prior to making the sale.

Relational selling is value driven, not price driven. You must assure potential clients or customers they are receiving a high-quality service delivered by a knowledgeable professional. In a relational model, there is some emotional involvement in the sales process. Let’s face it, buying a garden hose is not an emotionally-charged experience,

Think about the following:

  1. Do my marketing and sales efforts require transactional or relational strategies?
  2. If I’m marketing a professional service, what is the one key message I want my potential client to know?
  3. If I’m selling a product, what are the one or two most important features and benefits of my product?

Keep in mind that marketing professional services is all about building and maintaining relationships with your clients.

For more information about relationship and referral-based marketing, click HERE.

 

 

Time to Tune Up Your Elevator Speech

5 Tips to Make Your Elevator Speech (ES) More Impactful

elevator

You have an idea of what you want to say in your ES. You feel confident that your talking points are solid. Your introduction is brief. Your statement about what you do in terms of what’s in it for the person you’re talking to is succinct. Your statement indicating how passionate you are about what you do is precise. And, your statement or two that ends the conversation is clear.

 

Here are some ways to fine-tune your ES.

  • Think of your ES as your business card in action. Most likely, you will want to modify or refine your elevator speech. Just as you reprint your business card when you move or change jobs, you have to ‘reprint’ or refresh your ES as time goes on.
  • Use plain English, not professional jargon. Don’t hide behind jargon. If you’re talking to someone in your professional community, tone down the jargon and remember to use mostly jargon-less words. Remember, you only have one chance to make a first impression.
  • Practice your ES out loud in front of a mirror. No matter how painful and embarrassing it is, you should practice your ES in front of a mirror. If you really want to experience terror, try practicing it in front of your spouse or child.
  • Be prepared to improvise and adapt on the spot. Consider having two or three variations of your ES on the tip of your tongue.
  • Land the plane, smoothly, safely and quickly – Don’t drag your ES on and on. Once you start repeating yourself, then it’s time to end it. Quickly decide what kind of follow-up you want: exchange business cards; ask for a meting; ask for name of someone else who might be helpful.

It’s OK to use your elevator speech on an escalator or on the floor.

What is the Look-Out Syndrome?

dont-panic

Tamara is a 29-year-old freelance destination-wedding planner. She left her job as an administrative assistant at a large event planning company to start her own business. During her time at the company, she made valuable contacts in the hospitality industry with hotel managers, caterers, travel agents, airline personnel, photographers, videographers, florists, bridal consultants, disc jockeys, bands, etc. She felt confident she could make it on her own.

When she started her business, Tamara did not fully realize that she had to develop trusting business relationships with the bride and groom and their respective parents and all of the vendors who would be providing the services.

She did not feel confident at the thought of working with all these people. She also felt uneasy thinking about working in overseas venues.

Tamara was fortunate and got a referral from a former colleague. This would be Tamara’s first client. When Tamara’s friend told her about the referral, Tamara’s brain went into overdrive and she felt nervous, to say the least. She remained in this stirred up state right up until the time she met face-to-face with the prospective client.

Her anxiety led to what I call the Look Out Syndrome. The Look Out Syndrome occurs when you are in a situation with another person and you focus your attention on the other person’s body language, facial expressions, or general demeanor instead of listening to what is being said. Often, your evaluation of these non-verbal cues is incorrect and usually negative. Most importantly, you imagine the other person is thinking negative thoughts about you.

Tamara fear of rejection was overwhelming. Not only was Tamara scanning for danger by looking out, she also questioned herself, “Will I get the sale?” “Am I qualified?” “What do they think of me?” Now more doubts about her confidence started creeping into her head. Tamara said to herself, “Is the look on the other person’s face saying he doesn’t want to work with me?” This is called negative self-talk. As a result she didn’t hear most of what the prospective client wanted. Not good.

Here’s another way to understand the Look Out Syndrome:

I am looking at you looking at me
And
I am wondering what you’re thinking about me.

What a mess. When you experience The Look Out Syndrome and you’re not listening, you don’t say what you want to because you’re too busy trying to figure out what the other person is thinking. Can we attribute Tamara’s case of Looking Out to inexperience? Immaturity? No self-control? Probably none of these.

Tamara was scanning the prospective client so intensely that she asked the same question three times. Clearly, Tamara’s thinking brain was offline. She was in a reactive mode and her emotions took over.

What happened? The prospective client did not hire Tamara.

Tips to prevent the Look Out Syndrome

Look at the other person, not into them. Focus on the color of their eyes, the color of their hair, or any other feature. Focusing on physical features will calm your brain so your thoughts stay focused in the present. Then there is no room to think what they’re thinking about you.

Listen. This is probably the easiest thing in the world to say and the most difficult thing in the world to do. What is listening? How do you listen? How do you know if you’re being listened to? Look online for tutorials that teach listening skills for business people.

Turn that frown upside down. I’m a big fan of faking it – to a point. Pretend to be brave when you’re anxious. Try it and you might feel more self-assured. Fake being interested in other people when you’re feeling low. See what happens to you.

Take a timeout to calm yourself. According to a 2013 study published in the Journal of Communication, “. . . people stressed from work did not feel any more relaxed after they played video games or watched television. They often felt even worse.” It has been observed by some teachers of psychology and neuroscience, that if you’re feeling stirred up or reactive, it takes approximately 20 minutes of positive self-talk and breathing to get back into your thinking brain,. In business situations, I generally leave the situation for a few minutes and take a restroom or coffee break. The short time away is enough for me to take a few deep breaths, screw on a smile, and resume my discussion.

Think business at all times. Your job is to build business relationships, not make friends. You don’t want new friends; you want customers or clients. If you focus on understanding and satisfying the business needs of customers and clients, you’ll be able to keep personal interests out of the equation. I’m not saying you should skip informal small talk and jump into business talk. You need a way to break the ice and small talk in a good way to do it.

Use a Cheater. Write an outline of key talking points before your meeting. Take notes and keep to your script (as best as possible). Don’t forget to breathe.

For more ideas on how to build business relationships, go to criticalconnectionsbook.com.

 

Did You Ask a Good Question Today?

questions

This is one of my favorite stories. Isidor Rabi (1898 – 1988) was a Polish-born American physicist and Nobel laureate. He was recognized in 1944 for his discovery of nuclear magnetic resonance, which is used in magnetic resonance imaging. When asked if there were any significant influences on his life, he said, “My mother made me a scientist without ever intending to. Every other Jewish mother in Brooklyn would ask her child, “So? Did you learn anything in school today?” But not my mother. “Izzy,” she would ask, “did you ask a good question today?” That difference – asking good questions – made me become a scientist. (As quoted in “Great Minds Start with Questions” in Parents Magazine, September 1993). The lesson I learned is profound and forms the basis of my work.

Izzy’s mother got it. She understood that asking questions is about engaging in meaningful dialogue.

I wish I knew about Izzy and his mother when I started my first job after graduate school. One of the managers where I worked took me under his wing and gave me two pieces of advice I’ll never forget.

  1. During your first few months on the job, don’t impress the employees with how much you know. Don’t offer up solutions or suggestions. Just ask questions. Ask as many questions as you can to as many employees as you can.
  1. When you are walking around the office, always carry a yellow pad with you.

There are two reasons to do this. The first is that it would not look good to others to walk around the office empty-handed. After all, “Idle hands are the devil’s workshop.” You need to appear as though you’re doing something work-related. When you ask a question, surreptitiously write down what others said. Keep this list handy and use it as a reference when you would be in a position to answer questions.

From that point on, I never stopped asking questions.

Here’s a brief example of how to ask questions in a business situation. A customer asks you a question about your product or service or states a frustration. Instead of trying to answer the question or solve the problem, the very first thing you do is to take their question or their stated frustration, throw
it back to them, and ask for clarification. You might say, 
“What exactly do you mean?” “Tell me more about this.”
“Can you clarify your question?” Sometimes, people just want to be heard and are not looking for solutions. By asking questions, you’ll begin to engage in a dialogue.

Next time a customer asks a question or states a frustration, start asking questions.