Question

How does relationship-oriented selling differ from transaction-oriented selling? What are the benefits of each? Give an example for each.

Answer 1

Relationship oriented selling is about building a customer base with the intention of retaining them by satisfying their needs and wants. This approach is focused on relationship and business benefits on the accounts of customer retention and long term market development.

Benefits : 1. Long term relationships are built.

2. Customer retention is more economical than finding new customers.

3. Products can be customized and improved based on the feedback.

Example : a salesperson in a car showroom who not only sells the car but also helps people understand the features and make use of them along with proper assistance and service after the sales.

Traditional selling is more narrow minded approach with all the focus on selling the product considering little of what the customer actually needs or wants. It is about punching the numbers with the intention to increase sales and promote the product.

Benefits : 1. Sales are the focus

2. Approach results in increased competition to sell.

Example : a salesperson in a furniture firm pushing to sell as many furniture sets as they can.