Transaction Marketing should not be confused with Transactional Marketing.
Transactional Marketing focuses on single “point of sale” transactions.
Transaction Marketing , on the other hand, is the art of using appropriate marketing mediums (i.e. email, PR, social media, Telemarketing etc.) at the right time, in order to prompt customers to purchase a product or service…in turn facilitating a sales transaction.
In short, Transaction Marketing describes the marketing effort that helps a sales transaction to occur, so that sales opportunities are maximised.
Unlike Transactional Marketing, Transaction Marketing is more of a long term ongoing marketing methodology, that encourages purchasers to reorder, enabling several transactions to take place.
Transaction Marketing is a key lead generation and lead nurturing phase in the customer relationship marketing (CRM) process. High Customer Lifetime Value (CLV) is the long term aim.
During the Transaction Marketing process, transaction sizes and volumes are audited.
By using the Transaction Marketing process, Financial teams can work closely with Sales and marketing teams to set and measure Return on Investment (ROI), cost per customer acquisition (CPA) and other success metrics that can be built into a Marketing Cost Plan.