At SheetLabels.com, we have literally thousands of active customers, and process hundreds of orders per day. While our business is set up to handle the volume, we also have a handful of larger customers. I’ve noticed a specific sales challenge that’s presented itself, which I’m sure many businesses in a multitude of industries are facing. I’m wondering – is it possible to succeed in both relationship-driven and transaction-driven sales?

Let’s take a look.

First, by way of definition, a transactional sales approach is characterized typically by higher volume of accounts, and also potentially higher profit margins. Often impersonal, the approach is a quick professional exchange – it may not even include personal contact. In fact, in most cases for us, interaction might only be digital without a single phone call being placed. The online world has opened up myriad opportunities for businesses to succeed that focus solely on transactional sales.

Transactional is a great fit for Millennials and their much sought after dollars. According to Forbes, There are 80 million millennials in America alone, representing nearly a quarter of the entire US population. It’s said that Millennials possess $200 billion in annual buying power. It’s a big pie, and everyone wants a slice.

There are some things to consider when targeting this group, and they happen to favor the transactional sale. First, Millennials are not as influenced by advertising. However, they are influenced by the online research, blogs and reviews they read before buying. In fact, according to Forrester, 74% of B2B buyers shop online before making a decision. And perhaps most importantly – they like their services quick and easy (the fewer clicks the better), playing into the sweet spot of the transactional sales driven business model.

The transactional customer favors a quicker and faster decision-making process. They expect an instant response from vendors, and they demand quick delivery.

Take SheetLabels.com, for example. Thanks to our proprietary software, customers can quickly and easily create and pay for a label order – literally within minutes. And they can have their labels printed, converted and shipped the very same day. We wouldn’t be as successful as we are without these capabilities.

Transactional business, however, has its limitations and drawbacks. Business can be sporadic and harder to predict, and customers will go elsewhere on a whim.  Some will go with a competitor simply to save a few dollars. Others may take their business elsewhere if a webpage isn’t loading fast enough.

At the other end of the sales spectrum is the relationship-driven sales model. From the outset, it’s a stark contrast. The relationship sale is slow to start. It could take several phone calls and emails just to set up a face-to-face meeting. But while it’s a much longer timeline, once you acquire these customers, they tend to stick around for a long time.

The relationship-driven sale is “old school,” to borrow a phrase. Think multiple meetings, dinners, golf, phone calls, and salespeople getting to know customers on a personal level. Here, nobody is sitting behind a website, online chat, or email address. The salesperson has taken the time to get know the customer and his or her specific needs.

The relationship customer will reward the vendor with loyalty – they’re not going to jump to a competitor because of a small price savings. They feel valued, and not just a number. 

Companies focused on building relationships enjoy more stable, predictable sales. They’re also paying for it in the up-front costs to employ a seasoned sales staff, as well as an expense account that includes an extensive budget for travel and even entertaining clients.

It’s a deep contrast between the transactional and relationship worlds. But now back to my original question: Can you successfully have both? Or, is there too much of a contrast in philosophy?

Relationship selling is characterized by frequent contact, trust and honesty. When a customer feels as though the seller has actively listened to their needs, and truly cares about not only your business but can empathize with you as a person, the sale has practically been made.

Can a transactional business model incorporate these feelings in an automated website? Can they make one of thousands of customers feel valued? Can an organization truly empathize with a transactional customer? That’s the challenge. Here at SheetLabels.com, we are trying to bridge this gap. We want all our customers – no matter how small they may be – to feel that they are getting a relationship as well. It’s our goal to succeed in providing the benefits of both models – the speed and efficiency of the transactional sale and the loyalty and authenticity of a relationship.

Both approaches can certainly be successful independent of one-another. That said, when you can effectively sell both ways, another question arises regarding which method to employ as a primary focus of your organization. The answer lies in knowing what your core business is capable of. If a label manufacturer is going to key in on transactional sales, then the company better have the technology to produce quick turnaround, high volume, yet high quality work. On the other hand, if a label supplier picks up on a potential client needing a more personal touch, then having a knowledgeable and dedicated salesperson, and dedicated capacity is paramount.

How are you taking on the challenge at your business? I’d love to hear your thoughts firsthand. If you’re attending the upcoming Labelexpo Americas 2016 in Chicago, I’ll be discussing this topic and more as part of the event’s conference program. I’ll be speaking on September 13 at 2 PM and September 14 at 11 AM. I look forward to seeing you there, and I’ll be happy to answer any questions you may have about eCommerce and the transactional and relationship-driven sales challenge.


Adam Gray is president and CEO of SheetLabels.com, a Glens Falls, NY label manufacturer that specializes in e-Commerce.