A strategic partnership occurs when a business forms an agreement to share resources with another business entity, often with the goal of mutual growth and success. There are various types of strategic partnerships.
For example, a horizontal partnership occurs when businesses of the same field partner up to improve their market, such as in the case of Facebook and Instagram. In a vertical partnership, businesses partner with other businesses within the same supply chain, often to stabilize the supply chain and increase sales. In the case of an equity partnership, an investor acquires a percentage of a business, providing it with the capital it needs, while sharing in on profits.
A strategic partnership is one of the powerful tactics that can give a business a competitive edge, as it allows organisations to work collaboratively and leverage upon individual strengths, while at the same time remaining independent and focused on their core competencies. A business’ partner can offer skill sets and services that differentiate your business from your competitors. For example, a partnership between a F&B brand and an apparel brand can lead to more sales for both brands.
Besides its benefits to businesses, strategic partnerships also benefit customers in more ways than one.
How Strategic Partnerships Benefit Customers
Customers also stand to benefit from strategic partnerships, and are able to access more goods and services, which enhances their overall customer experience.
Provide Greater Variety
Strategic partnerships allow brands access to a wealth of new resources. According to Powerlinx, 26 per cent of business leaders consider gaining access to new technology or intellectual property as a benefit of strategic partnerships. Furthermore, businesses are also able to diversify their product lines, or gain access to the materials, knowledge or market they need to extend their product lines with greater ease.
For example, one of the most well-known examples of a strategic alliance is the Starbucks and Target partnership. Customers who enter a Target store are immediately faced with a Starbucks counter. This opens up the choice for them to be able to get a coffee to enjoy while they shop.
This ultimately benefits customers, as it gives them a whole new variety of products and services available. A brand in partnership with another business can give customers not just one niche service, but a whole range of services that they may require. This may open up to new and undiscovered needs that they may have that could be helpful in their journey.
On the contrary, without partnerships, customers are generally only exposed to a specific type of service as businesses often do not have the capacity to offer more than one type of service.
Enhance Customer Experience
Today, more and more customers are placing an emphasis on brand voice, values and awareness. Customers like to have the confidence that they know and recognise the brands they are dealing with, and have the aspirations to grow and undertake the activities necessary to achieve growth.
When partnerships are made between brands, it serves as evidence that these brands can be trusted by others, and thus customers will also view them as industry experts.
This also shows that the brands are able to empathise with customers, and utilise the knowledge and experience brought by their partners to provide a better customer experience. This gives the customers confidence, and allows them to better resonate with the brand.
This is especially so in the relocation industry, where customers rely a lot on the companies to make their relocation journeys seamless and stress-free.
All in all, this helps to create an enhanced customer experience for the customers, and allows them to place more trust in the brand.
Provide Greater Convenience
Partnerships allow businesses to provide customers with a one-stop platform that is able to service multiple verticals, thereby providing customers with greater convenience.
One key example is Apple’s partnership with Mastercard. Apple Pay allows MasterCard users to use their Apple products for making everyday payments. This partnership allows Apple to enhance their contactless payment systems, while tapping into MasterCard’s pool of customers.
While this entices customers to use the service, it also provides customers with a very streamlined experience. Users can experience ultimate convenience, as it is no longer necessary for them to take out their credit or debit cards to make payments, instead, payment can be made hassle-free through their Apple devices. This leads to a very comprehensive user experience for both Apple and MasterCard users.
Better Deals and Value
Lastly, with strategic partnerships comes economies of scale. Brands have a larger capital and pool of resources, which enables them to push out better products and deals for customers.
How Moovaz Can Help
Regardless of the sector you are in, it is important to identify suitable organisations to partner with, so as to reap the abovementioned benefits for your customers.
Here at Moovaz, with our proprietary technology, we strive to inspire freedom for our partners and clients. As a one-stop international relocation service platform, Moovaz also builds strategic partnerships with many companies offering valuable services under our service verticals. These strategic partnerships have increasingly helped us and our partners discover and meet both new as well as existing unresolved customer needs. Partner with us today to see a brilliant strategic partnership blossom to benefit your customers.