Strategic Business Relationships
Building a database is an important step in companies being able to generate additional sales for every dollar spent on promotion. Because contacting your customer database generally doesn’t cost you anything, a promotional e-mail to them that results in sales is pure profit for your business.
Therefore, the more that your customer database or list grows, the more that your capacity to generate sales will grow. Of course, this means that your return on income will grow because these additional sales will come without additional expense.
However, growth to a database relies on the amount of traffic that gets the opportunity to opt-in and trade their contact details. While the mailing of an offer to this database doesn’t cost anything, getting the traffic to that page can cost time and monetary resources.
Some companies buy pay-per-click advertising to get more opt-in leads; while other companies employ social media strategists. Regardless, there is an additional expense that companies typically have to consider when trying on their own to increase the size of their database.
However, there are ways of broadening one’s customer database, that don’t carry additional costs. One of the best ways to do this is the building of strategic relationships with complementary businesses. This means that you’re building a mutually beneficial relationship with a business that has a similar client base but doesn’t sell the same products and services that you do.
In this kind of relationship you and your strategic partner will be working together to broaden each company’s customer database. While in some cases you’ll both be attempting to get additional sales, the prudent course of action is to seek to broaden your respective databases.
The main reason for this is that your strategic partner will not have developed a relationship with your customers. In the same way, you will not have developed a relationship with your partner’s customers. Since you will both be meeting subscribers for the first time at the outset of your contact, they may not be ready to buy immediately.
Therefore, in order to maximize a strategic business relationship, you will need to endorse each other in either an e-mail or direct mail letter. Along with that endorsement should be some incentive for the customers to visit the locations of each respective business.
This incentive will serve two purposes. First, it will entice visitors to overcome their reluctance to visit the location even though they aren’t as familiar with each respective business. And secondly, it will make tracking very easy to do.
As you structure relationships with new strategic partners, you’ll find that your customer database will begin to grow and you will be able to generate more income using your contact e-mail system. Investing the time in finding those businesses that have a similar client base with different product and services selections will give you an effective way to boost profits.
The key to the success of the method will always be the level of investigation that you undertake in order to find those companies with similar client bases.