In business, competition has been the historical norm. Yet a growing number of savvy companies are realizing that joining forces with others can reap much more significant rewards than going it alone. When it comes to promoting a company, cross promotion is a particularly powerful strategy.
Known as "cross promotion," the concept involves working with individuals, groups or companies to create more business for everyone through common promotional activities. At the simplest level, this process might involve referrals from satisfied customers or from companies that offer complimentary services. More creative partnerships may result in shared promotions between companies that have a common target audience or between companies that offer similar services in different geographic areas.
Kare' Anderson, author of Walk Your Talk: Successful Cross Promotion, says, "Cross promotion has the potential for a big marketing payoff because partners can successfully expand through each other's customer base." She suggests the "marketing multiplier method" in which companies save marketing dollars while "multiplying the credible ways and places hot prospects see your service." For instance, companies may print joint promotional messages on their receipts or offer a discount if customers buy products from two or more partnering companies.
Partnering with competitors
In some cases, even direct competitors can benefit through cross promotion. For instance, two small companies may be able to attract a large account by combining forces. While neither company could handle the large account alone, they can work together to share the profits. For many businesses, having a piece of a large pie is better than having no pie at all. And in many cases, the smaller companies together can outmaneuver larger competitors by offering lower prices due to lower overhead.
"Affinity marketing" is a related strategy that allows companies to partner with trade or non-profit organizations. A common arrangement in these partnerships may involve companies serving as sponsors or donors for fundraising events. The organization hosting the event promotes the sponsor company in exchange for some form of support. Since more than 75 percent of adults say they are more likely to purchase a product or service associated with a cause they support, this can be a very successful marketing strategy.
Companies who share promotional activities benefit in many ways. They tend to gain more attention in a less competitive environment, save time and money on promotional costs, expand their reach and frequency in delivering messages to their target market, and gain credibility by standing together with other businesses.
While the benefits are clear, business owners who want to explore cross promotional opportunities need to do their homework. In addition to conducting research in order to accurately identify your target market, it's important to check out potential partners and make sure that both companies are trying to reach the same consumers. Once a mutual market is defined, it's best to approach potential partners with several ideas for low-risk, low-cost, initial activities. To express your commitment to the process, it helps to make the first action even more beneficial to your partner than it is to you, Anderson suggests.
Business partnerships of any kind work best when all parties understand and agree to their part in the process. To avoid misunderstandings, document in writing the details of any cross promotional activity, including each partner's cost and anticipated benefits. All partners should review and approve the resulting agreement.
Cross Promotional Advertising
Advertising is one area in which cross promotion is particularly useful. Many companies find advertising, especially television commercials, to be prohibitively expensive. Yet companies that share a common service in different geographic areas, for instance, can benefit from paying for a portion of a well-produced ad that simply inserts the appropriate company information for use in a specific area. Companies that offer complimentary services can save by sharing costs for an ad that promotes both products or services.
Anderson urges business owners to think creatively about "bundled offerings" with companies that share the same target market. Co-branding, shared display or office space, and co-produced special events are some examples of this growing trend. For instance, pest control companies can partner with landscapers, tree service firms and lawn care companies to offer bundled - and discounted - packages of seasonal services. As added incentive, all customers who purchase the package then may be eligible for a special prize drawing.
Speaking of prizes, an easy way to promote a partner company is to enter your customers in a drawing for a partner's product or service. When the contest is over, switch roles so that your company provides a prize for a contest offered to your partner's customers.
Not sure where to begin when it comes to cross promotion?
A Smorgasbord of Cross Promotional Ideas
Assuming you've chosen an appropriate partner company with a common target market, consider this smorgasbord of ideas to get your creative juices flowing:
Ask partner companies to mention your services on invoices or letters to customers and do the same for your partner.
Highlight your partner(s) in your company newsletter, e-zine or direct mail.
Develop joint presentations or seminars at home shows or other community events. Or create an informational program featuring all partners' services and offer it as a stand-alone special event.
Offer discounts to customers who buy packages of services from all partners.
Mention partners' services when you speak to customers.
Pool mailing lists and send out a joint promotional postcard.
Share ads in local shopping papers or nonprofit event programs.
Promote specials among partners by distributing information to your client base.
Create joint coupons.
Sponsor a community or charitable event.
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