Just like your business’s customer base, every other business has their own customer reach. If you can strike a deal, it will be mutually beneficial for both businesses to have exposure to the others’ customer base, who will most likely be interested in your goods or services. Everybody wins! First, evaluate what businesses are targeting similar audiences to yours. If you’re a quick service restaurant targeting a health-conscious, tight-scheduled clientele, an all you can eat buffet may not be the right business to partner with. However, a local health food co-op would be a really good option, because their customers are health-conscious and are seeking out nearby healthy options. Another great pairing may be a caterer and a party tent, table and chair rental service. Both business’s customers are planning events for large groups of people, and will most likely need both services. If you’re the caterer in this scenario, and each customer that works with the party table & chair rental service is given your name as a recommended caterer, many will consider your services and choose to work with you. And even if they do not choose to work with you for that particular event, this spreads brand awareness so they may remember you for future events.
One real-world example of this is the teaming of a small coffee roasting company Batdorf & Bronson Coffee Roasters with Monday Night Brewing, an Atlanta-based microbrewery. Monday Night Brewing wanted to expand their product line, and develop a coffee-flavored IPA. They approached Batdorf & Bronson, because they wanted to incorporate a local coffee. The two businesses worked together to select the perfect coffee for the new beer, and it was a huge hit. Once the beer was ready to sell, both businesses advertised the new product. This is a huge asset: the new product is advertised to 2 separate customer bases.
The coffee customers will be anxious to try a beer made with their favorite morning brew, and the brewery’s customers will be anxious to try a new coffee-flavored beer. If brewery customers enjoy the beer, maybe they’ll come by and try the coffee it was brewed with. And vice versa, the coffee customers may choose to purchase other beers from Monday Night Brewing, after they love the coffee-flavored IPA (or they may keep buying the coffee-flavored beer!). By cross-promoting the same product and each other’s companies, everyone benefits.
