Beyond the transaction
There is so much value created between businesses and the people they serve beyond the specific transaction. This can be grey and hard to measure – but invaluable when it comes to building long lasting relationships. Are you thinking beyond the transaction?
Hi everyone, I’m Jodie I’m the MD at Tiny Hunter. And today, I am thinking about how transactional outworld has become everything about cost efficiencies and streamlining the processes removing the humanity in a lot of cases. And I was listening to an interesting talk by Rory Sutherland who headed up Ogilvy for a long time and now sits on the board. And he was talking about this idea of transactional capitalism and relational capitalism. Now he was talking about the relationships between agencies and their clients and the fact that there is so much value built over time that isn’t captured in a transaction. It’s not directly linked to anything specific but that there’s a huge amount of value created. And he was talking about how that can get really lost when procurement gets involved and they’re doing a very transaction based selection. Not realising what they may have lost moving away from someone who’s been a really long term partner. And I think it’s something that we can all think about as business owners, as service based businesses, and as brands.
Sometimes you’re in a situation where you need to make a decision in terms of a customer for example, and you need to decide am I optimising for the outcome of this particular situation or, am I optimising for the bigger relationship? Because that is where you really generate that deeper loyalty when you think beyond the transaction.
That’s it from me, it’s time for brekkie.
Written by: Jodie de Vries
Published: May 31, 2023