By joining forces with the right partner, and then being truly, genuinely strategic about it, you can increase your client base, enter new markets, and generate additional revenue streams. These alliances can also help reduce operational risks, enhance your competitive advantage, and leverage economies of scale.
As another truism goes, it’s better to show, rather than tell. With that in mind here are some examples of what a truly successful strategic alliance looks like.
AWS and MLB: Revolutionising the Baseball Experience
AWS teamed up with Major League Baseball (MLB) to enhance the fan experience by using several cutting-edge technologies. This partnership leveraged AWS’s machine learning, AI, and deep learning tools to provide fans with never-before-seen statistics during games.
What does this look like in motion? If you’ve been to a baseball game or watched one on TV recently, you may have noticed new metrics such as “exit velocity” and “launch angles” appearing on the screen. These data points weren’t part of the fan experience before AWS stepped in, and actually require some pretty advanced technology to generate at speed.
In return for providing these technological enhancements, AWS gains substantial advertising exposure during MLB games. As one of the “big four” sports in the US, having its technology integrated into the game down to the most granular level is marketing value that money itself can’t buy.
Starbucks and Barnes & Noble: The Perfect Retail Match
Walk into a Barnes & Noble bookstore, and chances are you’ll see a Starbucks cafe nestled inside. This is as logical as partnerships go – who doesn’t immediately want to settle down with a coffee after purchasing a new book – but of course, as with any strategic partnership, it doesn’t just happen.
Starbucks brings coffee, snacks, and related retail items, while Barnes & Noble offers a wide array of books, movies, music, and magazines. Together, they create a space where customers can enjoy a coffee break while exploring new reads or browsing the latest titles.
The benefits go beyond the experiential, too. There is real money generated out of this partnership. A customer entering Barnes & Noble for a quick coffee may end up purchasing a book, while a book lover might be tempted to grab a coffee while browsing. These cross-promotional opportunities drive traffic and sales for both companies, making the partnership mutually beneficial.
Where This Fits Into A Successful Channel Partner Program
When we look through the six critical steps of a successful channel program, it quickly becomes clear that the right partnerships can smooth the journey to achieve this considerably.
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Define Your Program Objectives and Rules
The foundation of any successful channel partner program is a clear set of objectives and rules. You can’t expect great results by simply launching a program and hoping for the best. Instead, focus on forging intentional partnerships that align with your goals and broaden your market reach.
Set transparent rules that prevent conflicts and ensure fairness. For example, many programs include policies that prevent partners from registering the same deal with competing vendors. Do this, and you’ll have the right program infrastructure to start exploring those strategic alliances.
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Recruit the Right Partners
Not all partnerships are created equal. To succeed, you need to align with partners that complement your business. Partnerships between unrelated businesses—like MLB partnering with a toothpaste brand or Barnes & Noble teaming up with a restaurant chain—would not have been anywhere near as successful as the partnerships that they did build.
Instead, focus on finding partners that enhance your value proposition. Look for businesses that align with your goals and bring additional value to your customers.
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Set Partners Up for Success
If you want your strategic alliances to become case studies in articles like these, you need to make sure that your partners have the right tools and resources to achieve those outcomes. Channel technology can simplify processes like deal registration and alliance management, making it easier for partners to focus on delivering results.
Investing in tools that streamline workflows will make your program more attractive to potential partners and increase the likelihood of successful outcomes.
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Incentivize Partners to Drive Desired Behaviors
To achieve your program’s goals, you need to incentivize your partners to take specific actions. Provide timely rewards for completing desired steps, ensuring your partners stay motivated to drive results.
Just remember: What makes a strategic alliance successful and long-term is that it’s reciprocal. Expecting too much out of it, without putting back in, is going to lead to the partner pulling out the next time the arrangement is up for review.
Look at offering bonuses for registering new deals, increasing customer retention, or upselling additional services. Tailor your incentives to encourage behaviors that align with your business objectives.
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Maintain Consistent Communication
A strategic alliance is not transactional and requires closer collaboration than a typical interaction between business and customer or partner. Keep your partners informed about program updates, new opportunities, and changes in policies. Additionally, open yourself up to feedback and be willing to make changes that benefit the partner.
Regular communication ensures that partners feel supported and stay engaged with your program. It also allows you to address any concerns quickly and keep the partnership running smoothly.
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Use Data to Continuously Optimize Your Program
No matter how successful your channel partner program is today, there’s always room for improvement. Collect data from your program to identify what’s working well and where you can make adjustments.
A powerful channel technology platform can help you gather actionable insights to refine your program. Use this data to optimize your approach, improve partner performance, and achieve better results over time.
Ready to Launch Your Channel Partner Program?
Whether you’re building a new channel partner program from scratch or revitalizing an existing one, Vartopia can help. Our robust platform is designed to streamline channel management and improve partner relationships, helping you drive better results.
Request a demo today to learn why leading channel programs trust Vartopia to power their success.
