Transactional or Relational Photography?

In general, there are two types of customer: transactional and relational. Although, most customers alternate between the two, depending on what they’re purchasing.

A transactional customer cares mostly about the current purchase and its price. For example, you probably have transaction-based interactions with gas stations, convenience stores, grocery stores, auto insurance agencies (at least here in Ontario), carpet cleaners, etc. You don’t really care which business you purchase from, you just want a good deal. Most customer interactions are transactional.

A relational customer, as the name suggests, is more interested in forming an ongoing business relationship. A purchase is based not so much on price but on previous experiences with that vendor. This type of customer wants low risk more than low price. For example, you may have a relationship with your dentist, doctor, favourite camera store, car dealership, hairstylist, etc. A relational customer is often a repeat customer and they tend to spend more.

To do business with a transactional customer, a photographer often needs to have a sale or other type of discount or incentive because price matters.

Doing business with a relational customer requires a photographer to have a strong customer focus and an understanding of what the customer needs.

While relational customers might be preferred, it may not always be possible.

Some customers don’t want a relationship with a photographer because they prefer shopping around for the lowest price or they purchase photography infrequently.

A corporate customer may view a photographer as someone who does piecework or as an hourly wage worker. This type of customer expects a transactional interaction. On the other hand, some corporate clients want a relationship with the photographer because they see the photographer as being part of their team.

A photographer who views their business as being transactional will tend to attract similar-minded customers. Or to rephrase that: if a photographer views a customer only as a dollar sign, then that customer will respond by shopping only price.

A photographer who views their business being relational will tend to attract similar-minded customers. To rephrase that: if a photographer acts like a partner in the customer’s business (with regard to their photography needs), then that customer will respond by bringing their business back to that photographer.

While photographers can be happy with either type of customer, a relational customer tends to be a repeat customer who’s not too price sensitive. This is the ideal customer for any business.

A photographer can help build relational customers by tailoring their marketing to appeal to such customers.

When a photographer talks about themselves, lists prices, and has occasional discounts, that photographer will appeal to transactional customers. Certainly there’s nothing wrong with this except that it encourages customers to shop price. These customers are more interested in the deal rather than the photographer.

A photographer who’s trying to build relational customers will adjust their marketing to talk more about the customer. This type of marketing will rely on emotion rather than price and it will attempt to position the photographer as an expert in their field. Relational customers may require ongoing customer service to maintain the relationship but this will increase the value of the photographer which, in turn, strengthens the relationship.

Photographers need as many customers as possible. While transactional customers may require less overall effort from the photographer, consciously trying to grow relational customers can help in the long run.

 

Transactional or Relational Photography?
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