Across all industries, from new startups to companies listed on the New York Exchange, companies now fly their flags as being committed to building lasting relationships with their customers. They claim that their business is centered around building authentic relationships, which places high value on building customer relationships. Indeed, one of their most prominent selling points is that they claim to prioritize long-term connections with the hope of encouraging customer engagement, building trust and sparking feelings of loyalty.
Sadly, these claims couldn't be farther from the reality. Many businesses' practical behavior shows that they decidedly remain transactional or, worse, predatory. This begs why companies pretend to be relationship-focused when their behaviour suggests otherwise.
Perhaps the first thing we should discuss is why businesses try to paint themselves as a relationship business even though they're mostly all about transactions. Companies understand that the concept of existing as a relationship business entices potential customers. By giving this impression, companies appear to care about their customers genuinely. It paints them as a body willing to go the extra mile not just to understand the needs of their customers but that they are also intentional about fostering long-term connections with their customers. By presenting this image, customers are enticed by the promise of a sense of belonging and personalized recommendations.
Related: How Entrepreneurs Can Fuel Innovation and Push Societal Limits
In an ideal business world, building and maintaining business relationships can be a deciding factor in determining the long-term success of a business. Yet many businesses turn a blind eye to business relationships and instead focus on the short-term benefits of transactional behavior. In many instances, businesses' efforts end the moment they collect customer data or a sale. While one would imagine that such data would be used to personalize and deliver relevant experiences, many businesses simply fall short.
A common real-life example many consumers have experienced in their relationship with businesses is getting generic responses to their inquiries. Another transactional behavior common with businesses is outsourcing support to reduce their costs. Although there's nothing wrong with them trying to reduce costs, this move cannot come at the expense of the consumers. How? Outsourcing support often means consumers relate with people who are not very familiar with the business processes. The support offered then shifts focus from attending to consumer issues to just closing case tickets raised by the consumers. Actions like these point to one truth: the business prioritizes short-term gains over long-term customer satisfaction.
Naturally, businesses vary in their approach when delivering customer experience. Some companies emphasize personalizing interactions and invest in customer service training, while others employ cost-cutting measures; here, business is strictly transactional.
Typically, in businesses, there's usually a discrepancy because of the following reasons:
Related: How Your Entrepreneurial Spirit Can Lead The Way in Crisis
A transactional behavior model might seem appealing and like a fast route for businesses, but it comes with risks. Relationships are important to customers, and they quickly notice when the company's actions don't align with the initial promise. It's only a matter of time before they switch to alternatives that offer more genuine engagement. Other risks associated with adopting transactional behavior include:
All said and done, to bridge the gap between promise and disappointing reality, it is clear that businesses need to adopt the habit of authentic relationship building.
Here are some tips on how to become a relationship business:
Businesses must stop selling themselves as relationship-focused when reality tells a transactional tale. Companies should be ready and willing to commit to understanding customers intimately to achieve a shift towards authentic relationship building. Only with a dedication to delivering value over time can companies claim to be relationship businesses, and they'll be rewarded with their customers' trust and loyalty; your customers know when you are faking it.
Take the decisive next step: Forge, a culture brand that embodies authenticity and galvanizes a workforce dedicated to fulfilling its core promise unwaveringly. Act now to intentionally transform your vision and reap the benefits in the ever-changing marketplace.
We Are in a Trust Crisis — How to Navigate the Pitfalls of Transactional Behavior in Business Relationships
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Across all industries, from new startups to companies listed on the New York Exchange, companies now fly their flags as being committed to building lasting relationships with their customers. They claim that their business is centered around building authentic relationships, which places high value on building customer relationships. Indeed, one of their most prominent selling points is that they claim to prioritize long-term connections with the hope of encouraging customer engagement, building trust and sparking feelings of loyalty.
Sadly, these claims couldn't be farther from the reality. Many businesses' practical behavior shows that they decidedly remain transactional or, worse, predatory. This begs why companies pretend to be relationship-focused when their behaviour suggests otherwise.
Perhaps the first thing we should discuss is why businesses try to paint themselves as a relationship business even though they're mostly all about transactions. Companies understand that the concept of existing as a relationship business entices potential customers. By giving this impression, companies appear to care about their........
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