Strategic partnerships have been a networking and marketing tactic that has grown alongside the business industry for ages, and it’s proven time and time again to be a great tool to utilize for business expansion. These are often contractual agreements between two parties, not necessarily those who have a lot in common with each other, but those who can find a way to work together in an innovative and creative way towards a common goal, that is mutually beneficial, and will ultimately lead to growth within each company. Discussed below are a few examples of how strategic partnerships could benefit your company:
Boost Your Brand Awareness
Strategic partnerships give way to many opportunities for building brand awareness. Whether it’s the launch of a new campaign, or simply wanting to build a reputation for what your brand and company is all about – partnering with the right company can create a long-term desire for your services and products. According to an article written by Glympse, customers “appreciate the convenience of having brands they recognize readily available”, and business legends such as Starbucks, McDonalds, Uber, Spotify and CocaCola have made a point of fiercely collaborating with corporate giants, airports, medical facilities and large retail chains to ensure that not only their loyal customers are able to get their fix, but that potential new customers share in the convenience too, ultimately converting new customers to loyal ones.
Broaden Your Market
One of the most common reasons to get into strategic partnerships is to expand your reach and connect with audiences and customers that you wouldn’t ordinarily be able to. By collaborating with other companies outside of your usual market, your company is able to service larger markets without enduring the additional costs that are usually related to business expansion, such as: new infrastructure, increasing staff and expanding your distribution networks.
Spread The (Good) Word
Branching out into unfamiliar territory can come with its own set obstacles. If you have not yet built a reputation for yourself in an area that you are expanding into, you may find that your potential customers are skeptical about whether or not your products and services are in fact trustworthy. It’s in these instances where partnering with a business that is already well established in this market and has acquired the loyalty of the locals, that it can be extremely beneficial to your company’s growth and it makes it easier for your business to survive through the establishment phases of expansion.
While partnerships can help your company expand and gain attention in a variety of ways; the most crucial factor is finding the proper partner. The planning is as essential as the execution, it’s important to remember that your goals should always align and there should be a clear-cut way of moving forward throughout your collaboration. Breaking into new markets, expanding your reach and establishing good rapport with existing and potential new clients are all a part of growing your business, and strategic partnerships allow you to do so in an efficient, cost effective way that in itself could present you with new opportunities that other traditional marketing tactics may not do.