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The Sales Brief. Building a (Great) Business With Partnerships
Mike Birtwistle
May 31, 2024
Table of Contents
In Todays Post:
Welcome to The Sales Brief,
In today's brief, we're gonna be taking a look at a famous partnership that was built off the backs of two big brands that you're no doubt familiar with and how the right partnerships can have huge impacts for a businesses success
We will also be taking a look at a couple ads from those companies and what I like about them and where I think they could improve.
Finally we will dive into the steps you can take to start thinking about how to make a partnership work for you.
Let's get into it.
Growth Tip:
Leverage Customer Feedback to Drive Improvements:
Todays Ads:
Ad 1 - Starbucks
Things I like:
Great creative that clearly coveys the idea of the product making it easy to get the message through in a busy feed.
Background color also catches attention and is easy to swap out for variations of the creative making testing easy.
What Could Be Improved:
Weak hook. Personally when I think of s’mores I think of camping, times with friends and family, etc. I think they should have spoken to the emotional appeal and the memories.
Ad 2 - Barnes & Noble
What I like:
Clear value proportion. What book lover doesn’t want 50% off.
Clean creative with minimal distractions.
Things I Would Try:
Different text overlay.
Different book titles
Different background colors
Business Insights: Scandal, Strategies, and Success Stories.
The Power of Strategic Partnerships - Starbucks and Barnes & Noble
In the early 1990s, Starbucks and Barnes & Noble formed a strategic partnership that transformed both brands' customer experiences.
This collaboration allowed Starbucks to place its coffee shops inside Barnes & Noble bookstores, creating a unique environment where customers could enjoy a coffee while reading a book.
This strategy leveraged the strengths of both brands and provided several key benefits:
Enhanced Customer Experience: The partnership created a cozy, inviting atmosphere in Barnes & Noble stores, encouraging customers to linger longer and potentially purchase more items.
Increased Foot Traffic: Starbucks' presence attracted coffee lovers who might not have otherwise visited the bookstore, boosting overall foot traffic.
Brand Synergy: Both brands complemented each other perfectly, appealing to a shared demographic of readers and coffee enthusiasts, strengthening brand loyalty.
Key Takeaways for Your Business:
Identify Complementary Partners: Look for businesses that share your target audience but are not direct competitors. This can create mutually beneficial opportunities.
Enhance Customer Experience: Think about how a partnership could add value to your customers' experience. A well-executed collaboration can make your brand more attractive.
Boost Visibility and Reach: Strategic partnerships can introduce your brand to a wider audience, increasing your market reach and brand recognition.
Implementing a partnership strategy similar to Starbucks and Barnes & Noble can help your business tap into new markets and create a more engaging customer experience.
Deep Dive: Building a Great Business Through Partnerships
Strategic partnerships can be a powerful lever for business growth, opening new markets, sharing resources, and enhancing your brand's value proposition.
Here’s a step-by-step guide to building successful business partnerships:
1. Identify Potential Partners
Actionable Steps:
Define Objectives: Clearly outline what you hope to achieve through the partnership. Is it increased market reach, shared technology, or enhanced customer experience?
Research: Look for companies that share your values, target audience, and have complementary strengths. Use industry reports, networking events, and online resources to compile a list of potential partners.
Things to Look Out For:
Alignment of Goals: Ensure potential partners have similar or complementary business goals.
Reputation and Stability: Assess their market reputation and financial health to ensure long-term viability.
2. Initiate Contact and Build Relationships
Actionable Steps:
Networking: Attend industry conferences, trade shows, and networking events. Engage on professional platforms like LinkedIn.
Cold Outreach: Send well-crafted emails or make introductory calls outlining mutual benefits and expressing interest in exploring partnership opportunities.
Things to Look Out For:
Mutual Interest: Gauge their interest and openness to partnership discussions.
Cultural Fit: Ensure their corporate culture aligns with yours to prevent future conflicts.
3. Evaluate Compatibility and Negotiate Terms
Actionable Steps:
Conduct Meetings: Hold detailed discussions to understand each other's business models, strengths, and expectations.
Due Diligence: Perform thorough checks on their financial health, market position, and legal standing.
Draft Agreements: Outline the terms of the partnership, including roles, responsibilities, financial arrangements, and exit strategies.
Things to Look Out For:
Clear Objectives and Metrics: Define success metrics and key performance indicators (KPIs) for the partnership.
Legal and Financial Implications: Ensure all legal and financial terms are clearly stated and mutually agreed upon.
4. Launch and Manage the Partnership
Actionable Steps:
Joint Planning: Develop a comprehensive plan detailing the launch, marketing, and operational strategies.
Communication Channels: Establish regular communication routines, such as weekly check-ins and monthly progress reviews.
Things to Look Out For:
Resource Allocation: Ensure both parties commit adequate resources to the partnership.
Conflict Resolution Mechanisms: Have predefined processes for addressing any disputes that may arise.
5. Monitor and Optimize
Actionable Steps:
Track Performance: Regularly measure performance against the defined KPIs and objectives.
Gather Feedback: Collect feedback from customers and stakeholders to identify areas for improvement.
Adjust Strategies: Be flexible and willing to adjust strategies based on performance data and feedback.
Things to Look Out For:
Proactive Management: Stay proactive in managing the partnership to address issues before they escalate.
Long-Term Goals: Keep long-term objectives in focus and ensure the partnership evolves to meet changing business needs.
6. Scale and Expand
Actionable Steps:
Evaluate Success: Assess the partnership’s success and identify opportunities for scaling.
Replicate the Model: Use the partnership model to form additional alliances in new markets or with different products.
Things to Look Out For:
Sustainable Growth: Ensure scaling efforts are sustainable and do not compromise the quality of the partnership.
Innovation: Continuously seek innovative ways to leverage the partnership for mutual growth.
Conclusion
Building a great business through partnerships requires careful planning, mutual respect, and ongoing management.
By following these steps and being mindful of potential pitfalls, you can create partnerships that drive significant growth and long-term success.
Strategic alliances, when executed well, can become a cornerstone of your business strategy, providing competitive advantages and opening new avenues for innovation and market expansion.
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Thanks for reading,
Mike.