A hotel and restaurant owner should never run out of ideas to market his or her business. Many business books have been written with hundreds of different marketing strategies about sales and marketing; however, the key is to discover three or five strategies that are suited to your hotel and restaurant. Study the marketing strategies that you think will work for you and implement them.
Hotel and Restaurant owners consider Partnership Marketing, also called “Strategic Partners” or “Strategic Alliances” or “Joint Ventures” as the best marketing strategy of all time. In this method, you evaluate your business and think of other businesses that complement your product or service. These companies should not be your competitors although you have the same or similar customers.
Create an agreement with these companies that you will promote their product or service to your customers on the condition that they will do the same for your business. For a restaurant business, complementary businesses might be businesses offering condiments, drinks, suppliers of poultry, fruits and vegetables, and many other related businesses.
It is a simple process but if you learn more about it and master this art, you are on your way to massive and lasting business success. Here are five of the many reasons why Partnership Marketing is a smarter way to do business:
1. It is Faster
It is a lot faster and easier to find one business that will endorse you to their 1,000 customers rather than find a thousand new customers one at a time. To make better use of your time and finances, you would surely choose the first option. Write down a list of all your prospective partners then do some research on their businesses as to how you can add value to them.
Once you figure this out, give them a call, email or visit the office, and state that you are open for a partnership agreement with that company. Brainstorm on how you can help each other and better serve your customers.
2. It is Cheaper
Some businesses can afford to spend more than $100 just to generate a new lead, but that applies only to stable businesses. For a business that is just starting out, that would not be a smart financial move. A business would have to spend $100,000 to acquire those 1,000 leads – a large amount of investment that you only hope you could retrieve.
In a Partnership Marketing agreement, you do not have to shell out a large amount of money. Your investments would be a few hours to set up tracking links and write promotional emails. You would also spend a few hundred dollars to print some brochures and leaflets that will go into your partner’s next direct mail campaign.
3. It is More Effective
When a business owner does traditional marketing, most of the leads coming in do not turn to be customers because although many of those leads might want and need the product or service you offer, they might be skeptical or need more time to decide to buy. However, when your business is promoted or endorsed by a person or a company that is already trusted or credible, that power of being a trusted brand is automatically crowned to you.
This is called endorsed marketing, where you will not only get leads, but it will be much easier to convert these leads into sales. This means you accomplish the sales cycle quickly, bringing money into your company faster and leaving your business with more funds.
4. It Helps Your Customers
This is an important point that often gets forgotten. When customers buy and use your product, they will also need other complementary products or services. Hence, they will seek these products or services on their own and if you give them a hand, they will be grateful for your assistance.
In this way, you will also help them stay away from scams or illegal operators. If you know trustworthy companies and inform your customers about them, that is a value-added service for your customers. And satisfied customers will be loyal to you and will toot your horns for you.
5. It is Good for Your Brand
A business that is only starting out naturally has still an unknown or less known brand. Through partnerships, a new business will appear bigger than it actually is. By simply displaying the logo of your partner companies on your website, people will feel that you have more influence because of these associations and at the same time, you are a smart choice for your customers.
This will benefit your business because your partners will bring you new leads, and you will be better positioned to more convert your own leads easily. Existing partnership marketing will also facilitate new partners for your business and push your alliances to the top.