I recently read a 2013 study that conducted face-to-face interviews with 1,709 CEOs around the globe, where these leaders confirmed that our new connected economy is changing how people interact. In fact, in this study, nearly 70 percent of these CEOs shared their key insight into now aiming to develop strategic partnerships, because this makes for higher business value.
The concept of developing strategic partnerships or “fusion marketing” is not new. It just happen that CEOs are realizing more than ever that developing strategic partnerships benefits their company to reach new audiences and new wallets — higher business value.
Traditional examples could be the independent auto care shop being paid to place Napa logos around their garage or the local hardware store receiving ad dollars from American Standard for outdoor media signs mentioning that they are an “authorized American Standard distributor.”
What does this mean for your business? How can this benefit you?
Partnerships are one of the most underused, inexpensive, and effective methods of marketing and it doesn’t have to be complex. You benefit because now armed with this knowledge you can start positioning your midsize or small business to partner with each other or even large businesses, knowing this is what CEOs are looking for and want. Usually a smaller company can help meet the need for speed, responsiveness, and attention that challenge some larger companies.
Here are some important rules of thumb to go by when looking to strategically partner with other businesses:
- Have similar target markets.
- Have similar business goals.
- Have similar prospects.
- Have similar ambitions and values.
- Make sure the partnership offers the opportunity to market to an audience that’s interested in what you have to offer and will purchase from you.
- Don’t make it complex.
In the same way that CEOs realize that strategic partnerships make for higher business value. You must understand the same and recognize that it can help reach you new audiences and new wallets as well. Nobody loses when it’s win-win.
Question: What do you think? Do you already have partnerships?
P.S. In a later post I will go over the different strategies for developing strategic partnerships.