How do I know I operate a transactional brand?
- Annual Repurchase Rates are low, under 30%.
- I grumble when third parties charge me more for the exact same service.
- My new customers come from Facebook.
- My new customers come from Instagram.
- My new customers come from Pinterest.
- For catalogers, new customers come from Catalog Co-Ops.
- My new customers come from Google.
- I transact on Amazon and Amazon gets a generous cut of the action.
- I hound customers all across the internet via retargeting programs, stalking them, begging them to cash in an abandoned shopping cart.
- I have a robust shopping cart abandonment program.
- I offer bigger discounts for customers who abandon carts than for customers who complete an initial transaction.
- I offer discounts, period.
- I offer free shipping.
And that's just a sampling of likely outcomes that determine if you operate a Transactional Brand.
A Transactional Brand is at the mercy of strategic algorithms.
A Relationship Brand is at the mercy of strategic marketing/merchandising decisions.