Businesses form strategic alliances in order to reap multiple benefits. Most of all, the most obvious benefit is increasing profits. You and the other business work hard to build a strong alliance. Now start looking for extra to ways to build upon your brand strength. As a result of you alliance, your revenue stream and market share increase.
Take a look at these two key ways you can increase your profits.
Sharing and Receiving New Intel:
First of all, the goal of the alliance is success for both sides. Hence, create a “Conditions of Success (CoS)” document. The CoS contains one document from partners explaining their expectations of a successful alliance in 3-5 years. Understood expectations define the goals of the alliances. Both companies share intel on the market and mutual competitors. Valuable mutual resources develop new tactics to increase revenue, build additional long-term revenue streams, and markets.
Acquiring New Customers:
Customer base for the alliance originates from both sides. Once you merge customer bases, your alliance partner opens up to an entirely new target demographic to you. Results for you, a new source of potential paying customers. Your partner receives the same benefit. Customers purchase products from both members of the alliance. Depending on the size of your business and the size of your partner’s, as a result of the alliance the potential to see an increase in your customer base by up to 25-50%.
In conclusion, these are only two ways to grow your alliances. Let’s start a conversation to look at others.
3rd Eagle can make your alliances simple and profitable for you! If you would like more information, please contact us.
George Tyler is Chief Alliance Officer for 3rd Eagle, a boutique consulting team devoted to enhancing strategic alliances to grow your market share.
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