It costs more to appeal to a transactional mindset than it does to appeal to a relational mindset. A study, that Paul Higham put together before he retired as CMO at Walmart, showed that if you connect with a relational mindset, loyalty increases. And ROI can be as much as 10 times that of what you get from a transactional customer. Yet many brands spend the bulk of the marketing budget on creating transactions.
>At the most basic level of communication with the consumer, a brand serves as a tool that’s used to communicate the identity of a product, service or cause. We have a simple road-map that we use for all of our clients. It goes like this: Belief leads to trust. Trust leads to loyalty. Loyalty leads to community. Community leads to opportunity for fun, growth and success.
As consumers learn to trust a brand, they are able to make better choices faster. When a brand identifies and communicates its purpose, it is seeking something deeper – a relationship that connects the purpose of the people behind the brand with the purpose of the people who use the brand. By leading with purpose and shared values, companies are able to expand the consumer base and enlist these advocates to further amplify the brand message.
More and more of today’s successful brands are no longer satisfied merely with transactions. They look for opportunities to create an emotional experience with their customers that has the power to transform both their business’ and their customer’s lives.