Wednesday, September 5, 2007

Relational vs. Transactional Shoppers - Who do your ads attract?

Roy Williams, for, wrote an article about ads and how there are basically two different types of ads:
1.) Ads that attract transactional shoppers
Transactional Shoppers:
A. Thinks short term.
B. Cares only about today's transaction.
C. Enjoys the process of shopping and negotiating.
D. Fears only paying more than he had to pay.
E. Is willing to spend lots of time investigating.
F. Considers himself an expert.
G. Hinges every transaction on price.

2.) Ads that attract relational shoppers
Relational Shoppers:
A. Thinks long term.
B. Considers today's transaction to be one in a series of many.
C. Doesn't enjoy comparison shopping or negotiating.
D. Fears only making a poor choice.
E. Hopes to find an expert he or she can trust.
F. Considers her time spent shopping to be part of the purchase price.
G. Is likely to become a repeat customer.

He then explains how to design ads to appeal to each. He cautions that attracting transactional shoppers is dangerous because they only care about price and discounts. If you design too many ads or promotions that attract this type of customer, they will eventually become conditioned to only purchase from you when you are having a sale or discount offer.

Though transactional customers are easy to attract immediately, there is value in being patient and designing a brand/ad campaign that builds relationships and makes your product or service desirable at the normal price. When you aren't desperate for sales, which customer will you want more of?

This article is a MUST read for any small business marketer.

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