You may have come across the phrase ‘Strategic Alliance’ before, and wondered what is it and how could it benefit you.
A strategic alliance is a loose alliance with another business who sells to your ideal clients but doesn’t compete with you!
So how can working with one help you?
• Greater visibility
• More revenue
• Less work…or more return for the same output
• Added value to your network
The main thing to bear in mind is that this is a Win – Win situation.
If you do it right they will see it as you doing them a big favour by giving them the chance to boost their own profits, get more customers and receive the thanks of their customers (for referring them to a quality business), yours!
If they truly understand what you’re proposing, they should jump at the chance.
So how do you go about it?
1. Open your mind as to who you could join forces with. Think of the type of clients you currently do business with and who you would like to.
2. Think about the other services that these clients buy in.
3. Which of these services makes a sensible fit. Not too close to be competitive but not too different so there is no synergy.
4. Go meet with them. Have a coffee. Arrange to see at a networking event.
5. Discuss what they do marketing wise at the moment and what you do.
6. People buy people first and everything else second, so make sure you feel that you could both work together in an open and honest way.
When you do meet here are some questions to ask your potential strategic alliance partner:
1. What are your best products and services in terms of revenue?
2. Are you currently tracking your source of leads, the conversion rate, the average £ sale, the number of transactions, and the profit margin on these services?
3. What is it about your services that attract the right clients to you?
4. Have you ever bundled or packaged other services with yours to see if it enhances your sales?
7. What services do you offer that might package well with what we have to offer?
8. How can we communicate these services together to enhance the sales of both?
9. How can we jointly price our services to attract new and better clients without eroding profitability?
10. How can we jointly introduce these packaged services over the next ninety days?
11. What other businesses could we co-market with? What services could come out of a working relationship with these companies?
Get it right and both companies will benefit handsomely from the relationship!
I hope you have found this useful and interesting.
Please bear in mind that this is only scratching the surface. There is a lot more to it and the whole business of referrals and joint ventures.
So if you are starting to see the benefits and would like to know more please get in touch and let’s discuss how I can help you and maybe coach you through the process.