If you’re a business owner, you probably wonder if you should focus solely on being transactional or transformational. It’s important to recognize the difference between the two.
Transactional in business is all about what you are asking for. You sell a product or service, without deepening the relationship too much. But as a business owner, you wish to build a long-term relationship that comes from transformation. You want to use your product/service to change someone, enrich their lives, or teach them something they didn’t know before.
Business owners often focus on ‘transactional’ to-do’s because they feel more productive, but ‘transformational’ moves will help you in the long run
Most businesses focus on getting more customers & clients. The people who rise above these transactional relationships and transform them into something more meaningful are the companies who will thrive. They are the ones who will have a family of customers, clients, and friends that they do business with over time.
Transformational vs transactional: what’s the difference?
In short, a transit transaction is characterized by an exchange of value for value. In contrast, transformative transactions are characterized by an exchange of value for some sort of non-market good. Transformative transactions may be characterized by psychological relationships between seller and buyer that are more durable and trusting than those typified by transactions. Or transformative transactions may be characterized as providing some sort of benefit to one party that is not directly related to the market value of the good or service involved in the transaction but is valued nonetheless.
Transactional activities are those that help us check off our lists and feel productive (e.g., responding to emails), while transformational actions/behaviors are ones that increase productivity over time (e.g., building relationships). Consider this example, when trying to build muscle and increase fitness levels, it is not enough to lift heavier or run longer. Your body is a system and requires proper lifting technique, a solid program, sleep, mind/muscle connection, balanced hormones, micro/macronutrients and recovery. These essential components, along with so many other physiological elements is the nitty gritty groundwork for performance, endurance, strength, and hypertrophy. When a goal-oriented athlete does not consider the myriad of foundational building blocks, their success will not only be limited, but their body could actually enter a catabolic state.
7 strategies to support your long game
- Draft a list of what you want to accomplish through change and transformation
- Set aside time for an honest, deep dive into your organization, removing emotion and ego, how is the health of your business? Your staff? Revenue? Clients? All the things?
- Avoid burnout and overwhelm by focusing on one level of your business, i.e, operations, technology, human resources, business model, customer journey, etc
- Commit to solving problems at their core, the root cause, because a quick fix or bandage is just a transaction
- Focus on your future goals to help you create more meaningful strategic action steps
- Invest 100% in the process and mindset
- Gain staff buy-in through education and empowerment
If you maintain an emphasis on transactional business practices, you will find yourself dealing with clients who are less committed and not reaping the long-term benefits of solid relationships.
The goal of business success doesn’t mirror a travel itinerary, but instead, nurtures loyal client relationships, a strong corporate culture, and transforming the customer experience.
In the end, it’s really all about value. If you can prove to your customers (and all stakeholders) that you’re providing value, not just selling products and services, then you’ll be more successful than those who are simply trying to run their business in a transactional manner. Think about your own habits. Do you prefer businesses that treat you as a customer or as a valued member of their community?
Susan-
I love this post and the focus on what often may feel ambiguous, but in truth is a very real and tangible relationship value-add. This is because the results flow and relationships deepen when we actively decide to be transformational vs. transactional with our clients and overall business!
I also appreciate how you broke it down into 7 bite sized steps to make the process of becoming a more transactional business do-able.
Keep up the powerful and passionate blogging!