| With the economy tightening
up, now is the time to consider how to squeeze maximum value out
of those scarce marketing dollars. Cross-promotion immediately comes
to mind as one of the easiest and most efficient strategies for
achieving that goal.
At its core, cross-promotion is nothing more than joining forces
with compatible partners so that all parties can more effectively
exploit each others' marketplaces. The potential marketing payoff
is big because partners can successfully expand their business by
capitalizing on one another's existing customer base. It is a classic
case of marketing synergism applied to attitude, strategy and marketing
expense.
Cross-promotions include bundled offerings, cause marketing, co-branding,
co-op marketing and shared space. They will often involve a frequent
user program and tend to be more commonly applied in the consumer
retail sector. But that's not to say that they can't work just as
effectively in the B2B, government and not-for-profit arenas.
Is it worth the effort?
The work involved in cross-promotion is worth the effort. If executed
properly, cross-promotion achieves the following:
- Encourages customer trial
- Stimulates repeat purchase by offering more value for the current
customer
- Optimizes and multiplies the value of limited marketing dollars
- Can generate free media coverage
- Acts as a facilitator for customers of mutual interest, e.g.,
two separate sets of pet owners, one of whom buys a specific brand
of pet food and the other that buys exclusively from a pet retailing
chain. The common denominator is pet ownership. The facilitator
is the cross-promotion between the pet food brand and the retailer.
- Provides the weapon to outmarket the big guys
- Lends itself to viral marketing by providing convenience, maximizing
the experience and building the relationship.
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Unfortunately, many cross-promotions
fail for the simple reason that they are driven by the wrong intent.
An effective cross-promotion is more than just two parties sharing
point-of-sale material. It requires mutual commitment. It can never
be self-serving, i.e., how well does it work for me rather than
how well does it work for us. There has to be a quid pro quo for
both parties and agreements -- whether contractual or philosophical
-- must be faithfully kept.
Cross-promotion in and of itself does not require specialized marketing
skills or a major commitment in dollars. It does, however, demand
a willingness to be imaginative, aggressive and experimental. The
refrain should always be "Why not? What's to lose?"
Kare Anderson, an expert on cross-promotion strategy and principal
of the Say It Better Center, a California-based communications consulting
group, said the best cross-promotions are built on value. As a result
of the promotion, the customer responds to the marketer by saying,
"I know you and I trust you. You are obviously a thoughtful,
credible brand, and therefore I will buy from you."
But, notes Anderson, cross-promotions have to be more than just
a discounted offer. The better ones tend to be information-driven
in that they provide informative as well as monetary value to the
customer. Anderson said, "I get excited by cross-promotion.
It's a most efficient tool, and it forces the marketer to become
more customer-centered. There's also the thrill of putting unlikely
allies together, the more unlikely the better. That adds to the
customer experience."
Tips for the beginner
Anderson suggests the following low-risk and high-opportunity tactics
for jump-starting that first cross-promotion:
- Print joint promotional messages on each other's sales receipts.
- Offer a reduced price special service or convenience if customers
buy products from you and your partner.
- Hang signs or merchandising posters promoting each other on
walls, windows, product displays, etc.
- Mention one another's benefits when speaking at local events
or being interviewed by the media.
- Drop each party's fliers into shopping bags.
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- Pool mailing lists and send out joint promotional postcards
and e-mail messages.
- Promote your partner's products during their slow times and
ask them to do the same for you.
- Share inexpensive ad cost for local shopping newspapers or
nonprofit event programs.
- Put one another's promotional messages on Lucite counter stands
or floor stands in waiting areas.
- Encourage your staff to mention how your partner's products
can be used with yours.
- Give your partner's products when they buy a large quantity
of your product and ask your partner to do the same.
- Co-produce an in-store or office event, demonstration, celebrity
appearance or lecture.
Pulling it all together
Anderson cites an example of how all of these effective elements
came together in one successful cross-promotion. In the "I
Got Shot and Survived" program, a pediatrician practice joined
forces with a children's museum, pizza chain, soccer coaches, school
principals, city health directors, shopper newspaper, video rental
chain and stores selling toys, ice cream and children's clothing.
The program offered free immunizations for kids on Saturdays just
before school started. Immunizations and on-site counseling on how
kids can protect their teeth while playing sports were offered at
family-convenient times in a roomy, cheerful children's store with
a party atmosphere where kids were the center of attention. Parents
heard about the offer through all partners and received free snack
coupons that they could use to reward their kids for receiving their
shots.
The keys to success were a common market, non-competing products
or services, shared values and comparably valued resources that
each party was asked to contribute to the cross-promotion. Partners
created a "passion bond" relationship with each other,
their customers and even others who didn't need shots but were motivated
to try the partners' services anyway.
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Kare Anderson is the founder of the Say It Better
Center, located in Sausalito, CA. She can be reached via email at
kare@sayitbetter.com.
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