3 disadvantages of transactional marketing

Transactional marketing is a commercial strategy that focuses more simply on just making the sale, hereinafter “transaction”. Transactional marketing could be used for something that is already in high demand. Since the product is so desired, the efficiency of the transaction process is what generates the most money for the business. The sale of basic products like milk, for example, would use a transactional marketing strategy.

The 3 disadvantages of using transactional marketing tactics are:

1. Little effort placed on customer service

Sometimes customers can feel trapped if they have a problem with their purchase or feel that the company they just bought from doesn’t appreciate their business.

2. High-volume sales with lower margins leave little room for error

If a company places an order to produce thousands of units and an error appears, it can get expensive quickly and can eat into the very small margins that are made on sales.

3. Focus may shift to making sales instead of meeting needs

When the focus of marketing strategy strays too far from “making the sale” side of meeting the wants or needs of markets, customer satisfaction is hampered. Customers may even start to feel ripped off or ripped off.

There will always be a place for transactional marketing tactics in business, but with the addition of the Internet into our daily lives, more and more customer interaction with traditionally transactional marketed products is beginning to emerge, turning highly automated products into products that can make the client feel more appreciated.