My previous post on the topic of “transactionships” has clearly struck a chord based on the number of calls and emails that I have received. The feedback has revealed a fundamental schism in attitudes:
- Some argue that businesses are purely commercial enterprises with which it is impossible to have a true “relationship” – the best you can hope for is to be efficiently targeted and processed
- Some believe that businesses exist in the context of communities and, in order to retain their legitimacy, must develop the capacity for relationships rather than just transactionships
These points echo my earlier post about the “balancing act” of business – that you need to find a sustainable balance between creating customer value (a.k.a “being a valued contributor to the community”) and shareholder value (a.k.a “capturing enough of the customer value to keep your investors happy”). A cynic might argue that, for a business, a “relationship” is the way in which to maximize the value of a transactionship over time. He/she would say that businesses need to demonstrate just enough concern about diversity, the environment, and the other components of corporate social responsibility in order to keep customers transacting with them.
The proof of this particular pudding is beautifully illustrated by the current practice of ”green washing”. Businesses with even the most dubious track record of environmental performance are falling over themselves to stress their “green” credentials. Their motive is transparent – while a few may have genuinely had a “Damascus road” epiphany about the virtues of sustainability, the majority are just motivated by the desire to keep their customers transacting with them.
So – is it realistic to expect businesses to have real “relationships” ? And why would they want to do so?
I have some thoughts to share – but I would welcome your input before doing so. Keep comments coming to me at j.knowles@type2consulting.com
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The simplest answer for why businesses need relationships is survival. Competition is growing exponentially as the world shrinks, giving customers ever more choice and ever higher expectations for the value delivered. The easiest and cheapest way to meet those expectations and provide the value customers want is through a mutually beneficial relationship that goes beyond transactional efficiency to build trust, brand equity and positive word-of-mouth.
Unless you are selling a commodity that customers will only select on price, treating customers as a fungible commodity won’t cut it–they have choices, they’ll go where their business is valued.