The Transformation Economy

Since the beginning of marketing time, the ultimate objective was always a transaction. You give me a A, I’ll give you B. Transactions have become even more important throughout the emergence of digital marketing. You can track customers through the purchase funnel, explore why they didn’t transact and create less friction to improve transaction effectiveness.

Why transformations are more important than transactions.

While driving by a lively Apple Store, I heard the news that Best Buy will close 50 stores. Best Buy was a pure transactional company. The sales associates weren’t very helpful, just focusing on the sale and their extended warranty. The moment I declined the warranty, the interest level of the sales person dropped dramatically and I was herded into finalizing the transaction. Apple stores are transformational experiences. Flying with United Airlines is a transaction, flying with Virgin America a transformation.

A transformational experience: It’s not what you say. It’s not even what you do.

It’s how you leave them feeling when it’s all over.

When they walk out of the store, with your product in a bag – how do they feel?

When they see the email-receipt – how do they feel?

When you provide a transformational experience, you start a self-perpetuating loyalty loop. That good feeling about you will linger on, will be shared, stored in your synapses.

When you just provide a transaction, you need to continue spending a lot of money to get them back into your circles of influence.

Are you transacting or transforming?

 

About Uwe Hook

Uwe Hook (@uwehook) is the CEO and Co-Founder of BatesHook, Inc. (bateshook.com) and a veteran of the advertising and marketing industry with the goal of building connections between people and brands. Uwe can be reached at uwe@bateshook.com.

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