Strategic partnerships are nothing new. Companies have been working together for mutual benefits for a long time for a profitable future, with teams like Starbucks and Google, Spotify and Uber, and McDonald’s and Coca-Cola.
Though they're large-scale examples, they're examples of how strategic partnerships can work for both companies.
Here are five ways that a strategic partnership can help you grow your business.
1. Access to new customers
Being in a strategic partnership means access to new customers, embedded in this is an opportunity for free advertisement. When you’re paired with another business, you’ll be able to reach their clients as well. This is an incredibly effective marketing strategy, as you’re able to stretch your reach into double the clientele.
There’s almost no reason to be turned down by the other company either if your business is strong enough. For example, Starbucks has no reason to decline Google’s free attempt at securing some marketing because they receive just as much of a benefit.
The most important part in developing a business is widening your reach in the public. The more people see your product in an area where they frequent, the more they will find your product elsewhere.
2. Opportunity to reach new markets
Along with an extended reach into a wider variety of customers, your brand is now able to expand its horizons in areas previously unexplored.
Consider the example of Google and Starbucks. If you were to associate a company with coffee, you may not have thought Google. However, after this partnership, internet and coffee make a lot more sense. With this relationship established, Google now has many more opportunities that could arise similar to this that they have.
Google is so widely popular that this kind of publicity isn’t necessary. However, for a start-up company,a partnership like this is an incredible opportunity. If your business had the possibility of exploring this new frontier (in this example, coffee shops) you could use this publicity to benefit both you and your partner.
3. Added value for previous customers
Another benefit to a strategic partnership is adding value for loyal customers. When a business reaches customers during a growth period can help solidify loyalty. You want to show returning customers you care because it encourages the most powerful marketing tool of all: word of mouth marketing. Customers who hear positive reviews about your business are going to tell their friends about it.
You want happy customers who promote your services, by establishing roots with other corporations, there is a greater chance that you will pick up some of these free “advertisers.”
4. Building brand awareness
Another important result of doing a partnership is the construction of brand awareness. The most crucial thing you can do for your small business is getting out there and let people know who you are. By partnering with other organizations or influencers, there is more accessibility for people will be exposed to your logo, creating organic curiosity.
Brand recognition is an important first step to becoming a household name. It can be accomplished by pairing your service with a successful partner that carries a large customer base. Once you’ve done this, soon other companies will be asking you to partner with them.
5. Creating brand trust
Creating brand trust spawns naturally from a good business partnership. When people see you are able to work well with others and generate profit [from it], they will be more willing to help out and support your business. It’s all part of creating a healthy, stable, and productive network. You’re only as good as the people helping you up, so it’s important to make sure you know that they’re making a worthy investment.
You want to create positive relationships with everyone, and partnerships help you meet and work with new people who could help you grow you when you need it most.
Overall, partnerships work in many ways to spur growth and attention for your business; the most important aspect is accepting the right partner.
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