Kaye Marks |
Kaye Z. Marks is an avid writer and follower of developments in color printing industry and how these improvements can benefit small to medium-scale businesses. |
Kaye Marks
has written 38 articles for SB Informer. |
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Marketing to Relational and Transactional ShoppersKaye Marks
June 19, 2008
You know who your target market is, and you know what you want to say, but do you know how you should say it?
When
people are shopping for a certain product, about half of them shop in
what’s known as relational mode and the other half shop in
transactional mode. But, no one shops in one mode all the time. The
same person can shop in the two modes at different times, depending on
the item that he is shopping for. Knowing how to reach each of these
types of shoppers can significantly increase your sales.
Relational mode
According
to ad wizard Roy H. Williams, a customer that shops in relational mode
means she shops for something for reasons other than price alone. She
might frequent a grocery store because she likes the customer service –
she doesn’t go there because they are the cheapest in town.
A customer in relational mode has many characteristics:
1. Thinks about things for the long run. 2. Shops at one place frequently. 3. Doesn't like to negotiate or comparison shop. 4. Is afraid of making a poor choice. 5. Wants an expert opinion. 6. Considers time spent shopping to be part of the purchase price. 7. More likely to become a repeat customer.
Relational customers think emotionally. Use the following tactics to draw them in:
1.
Show your vulnerabilities. Your personal vulnerabilities, not your
business vulnerabilities! If you share your business feelings – hopes,
dreams, failures that you’ve learned from, you’ll grab the relational
shoppers. And be genuine and truthful in your statements – being lied
to will not encourage a relational shopper to purchase from you again.
2.
Use the owner as the spokesperson. Dave Thomas of Wendy’s is a good
example. He stood in front of his product to personally guarantee value.
3.
Don’t use expiration dates. Creating a sense of urgency in your ads
like “Hurry – sale ends Saturday!” won’t motivate these shoppers.
Knowing that you will always be there when they need you is what
motivates them.
4. Use words and phrases that show you are
competent. Remember, these shoppers are looking for an expert. Of
course, calling yourself an expert won’t work – they want to form that
opinion themselves. These shoppers’ biggest fear is not making the
right choice, so calm that fear by showing how you can guide them on
the right path.
Transactional mode
When people shop in
transactional mode, they are focused on getting the best price. They
want a bargain. They believe they already know enough about the product
to make a wise choice, without any input from the business or an expert.
The characteristics of a person in transactional mode:
1. Thinks about things in the short term. 2. Doesn’t care about future transactions. 3. Enjoys negotiating and the shopping process. 4. Fears overpaying. 5. Spends, or is willing to spend, much time investigating the purchase. 6. Doesn’t need an expert because she is one. 7. Bases every buying decision on price.
Customers
in transactional mode respond quickly to advertising – quicker than
relational mode shoppers. Use the following tactics to draw them in:
1.
Use expiration dates. This type of shopper responds to deals that don’t
last forever. They’d rather shop somewhere where they feel they’re
getting the best price and that those who wait will lose out. These
shoppers will respond to your color printing ads or weekly newspaper
inserts that tell them to hurry or they’ll miss a deal.
2.
Reduce your price or offer a discount or coupon. The better the
bargain, even if it’s only perceived, reels in these customers. Many
retail stores jack up their prices and have everything on sale all the
time. These stores are appealing to transactional shoppers.
3.
Discount a quality brand. Again, this deals with the bargain idea. Low
prices and sales are expected at a place like Target for clothes, but
if Saks Fifth Avenue has a sale – watch out!
4. Be specific
about your offer. These shoppers will be skeptical of ads that say “up
to 50 percent off” – they want to know the exact amount they’ll be
saving. They won’t be as motivated if you just give them a vague sale –
tell them exactly how much of a sale they’re getting.
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