Cross-promotion is a common marketing strategy in which two or more companies work together to promote each other. Each company works with the other to promote its products and services. This is a win-win situation for both companies.
This powerful marketing tool can help companies sell more products and make more people aware of their brands. Here are some reasons why cross-promotion works and how to make a cross-promotion plan.
Cross-Promotion Strategies to Consider
There is no set plan for how to cross-promote. The final plan will depend on the products, the companies involved, and the goals of the cross-promotion campaign. Here are a few ways to promote each other:
Social Media Campaigns
A cross-promotion social media campaign is a good way to get two different groups of customers to interact more with each other through videos and photos.
For instance, two businesses can use cross-promotion by sharing a post they made together on each of their social media sites to get more people to see it.
Joint Advertising Investment
Advertising can be expensive, but your business can split these costs with another business by forming a partnership. With a cross-promotional strategy, a billboard or commercial can be used to promote products from more than one company.
Customer Promotions
Companies in the same industry can work together to make loyalty programs or customer rewards programs to boost sales for the whole industry.
Cross-promotion is often used when two or more restaurants offer customers a point reward program when they visit a location that they both work with.
Another option is to work with another company to make a new product. This way, the costs of making and selling the product can be split, and both brands can get more exposure.
Public Events
A cross-promotion event can be a good way to show off products or experiences from more than one company. To plan a successful public event for cross-promotion, you need to know who you want to reach with your campaign. For example, a gaming company might think about holding an e-sports tournament instead of a marathon.
Cross-promotional Displays
A cross-promotional display is meant to show a product to a new group of customers. With a good cross-promotional display, you can sell an experience that includes more than one product.
For example, a store end cap might show hot dog buns, hot dogs, and soda from different companies that can all be used at a backyard barbecue.
Tips for Partnering With Another Company to Cross-promote
Ensure You Share the Same Values
In the same way that a business partnership can be confusing for customers, a partnership between two companies with different values might be too.
For example, if a sustainable brand with high-quality products teamed up with a fast fashion company, customers might feel confused or even betrayed. Cross-promotion should aim to build up a brand’s identity, not weaken it.
Identify Your Goals
In order for a cross-promotion partnership to work, both companies need to have clear, shared goals.
Both parties should be more open and honest about the key performance indicators (KPIs) they already track and the ones they want to track during the campaign.
Also, it might be helpful to spell out how and when the partnership will end. This way, if either party doesn’t get the results they were hoping for, they can end the deal on good terms.
Define Your Target Audience
Cross-promotion can help spread the word about a brand to new or different customers. Find out which group of people your partner company can persuade.
For example, if your goal is to get more people in a certain age group to know about your product, choose a partner company that is already popular in that age group.
Choose a Partner Company With Complementary Skills
Some of your company’s marketing weaknesses will be covered by the right cross-promotion partner. For example, if your business has trouble with social media, you might want to work with a business that is good at it.
When pitching a cross-promotion to a potential partner, talk about the marketing strengths of your own company. This will help you build a relationship that is good for both of you.
Define Each Partner’s Responsibilities
Once you’ve found a good cross-promotional partner, it’s important to be clear about what each partner’s role is in the marketing campaign.
A formal, written partnership agreement will clear up any confusion and make sure that no time or money is wasted.
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