To be or not to be: Transactional, that is

Our entire world has been shaped by technology. There is no industry, sector, or profession that hasn’t been touched by it, and we expect this to skyrocket with AI becoming more mainstream. So, what does this mean for sponsorship sales?

It’s easy to lean into the automation that technology offers us in the world of sales. There’s nothing wrong with using it at the right time for the right purpose. But the more you allow sponsorship sales to be guided by technology, the more transactional the methods become. In an age where technology is everywhere, the easiest way to stand out is to be human. Sponsorship sales that are based on relationship selling often create larger deals and loyal sponsors. But it’s important to know in which context these should be applied. We will look at sponsorships, exhibitions, and advertising sales through the lens of when it’s appropriate to be transactional, and when it needs a human touch

Let’s take a deeper dive into what transactional vs. relationship sales mean. A transactional sale is a sales strategy that focuses on making a sale as quickly as possible, rather than building long-term customer relationships. The goal is to make the greatest number of individual sales possible, and the customer lifetime value is often low. This is a fine strategy for exhibit booth sales or single-promotion ad placements. Opportunities that either have a straightforward goal for the potential sponsor or have a low enough price tag that negotiation isn’t required. A relationship sale is a sales technique that focuses on building a long-term relationship with a customer to generate sales rather than making a one-time transaction. It is customer-centric and aims to build trust and loyalty and is not focused on immediate results, but rather thinking for the future. We see relationship sales being most successful when we start discussing multi-year top-tier sponsorships, experiential activations, opportunities with a higher price tag, customization, or a deep understanding of the sponsor’s brand.

So why do we recommend relationship selling? The goal is not an immediate sale (realistically, even with the smaller assets). The goal is to prove your brand value to your potential sponsor. Even if they start the conversation by wanting just a single ad, you want the opportunity to showcase the benefits of investing more with you. This typically has a longer sales cycle and requires multiple touchpoints. This should be your sponsorship philosophy. Where you will be there to guide the conversation, answer their questions, and give them time to involve their necessary stakeholders to be confident in their decisions. Having their best interests in mind and nurturing these leads so that you become known, liked, and trusted by your sponsors. We know this is the key to building these relationships and curating year-over-year sponsorship deals.

But let’s not jump ahead to the sales cycle without mentioning the foundation: creating value-driven solutions. The first step is truly about creating a sponsorship program that makes sense to your sponsors—not for you, but for them. Offering program design that facilitates value exchange, transcending traditional brand awareness opportunities. We recommend having the flexibility to tailor packages specific to a sponsor’s needs and thinking outside the box! Focusing on deeper discovery of each potential sponsorship prospect so that their unique goals are identified and met. You’re not focused on selling; you’re focused on value. Finding the perfect balance of what you have to offer and what a sponsor needs so it’s a win-win for both parties.

The last piece of the relationship sales puzzle is fulfillment. Building post-event or year-end fulfillment reports that provide proof of delivery on sponsorship assets and demonstrate the engagement results and ROI against the sponsor’s defined objectives. This not only reinforces the relationship but is a great opportunity to upsell sponsorship for the coming cycle when they are feeling the highs of success, reminding them of the opportunities to increase it!

So why does transactional selling fall short? First and foremost, it’s the lack of differentiation. By focusing on the price and not the value, you are potentially commoditizing your offerings. You are not making your sponsors feel special, and you’re not making yourself look special. You will not stand out in competitive markets. You also haven’t built the foundation for long-term engagement. The loyalty isn’t there, and you can expect high churn rates and reduced upselling opportunities. Sales is as much emotional as it is about the price tag. And because of that, you’re going to find yourself with multiple one-off deals without the potential for strategic alliances.