The Importance Of Partnerships In A B2B Relationship
by Sumona Business Development 20 July 2022
For altogether too long, businesses have held the view that they were always in competition with other companies, even those in different industries.
However, in recent years the concept of forming partnerships with other, non-competitive businesses, has proven to be a win-win situation for everyone involved.
Some of the key benefits include a broader market reach, reduced churn rate, and a significant improvement in revenue. That’s just the beginning of why B2B partnerships are so important.
A Glance at the Benefit of Partnerships with Healthcare
It is no surprise that one of the key benefits a company’s employees look for is good healthcare. Most healthcare plans fail to provide more than the minimum coverage and that would be in the areas of HMOs, PPOs, and perhaps dental, vision, and hearing.
Sometimes they will cover the cost of OTC medications but almost universally they will demand a co-pay on all covered prescription medications. When compared to an insurance provider with a wide range of benefits, First Line Benefits has little to offer.
Let’s compare that to a healthcare provider that partners with businesses of all kinds in which covered members can receive amazing discounts and benefits such as meal delivery for covered participants unable to leave the home due to injury or illness.
Then there are partnerships with groceries, independent pharmacies, and other stores that provide healthy options in food.
This kind of plan is provided with a flex card so that one payment method is utilized and everyone benefits. Consumers (the insured) develop a long-lasting relationship with both the insurance provider and the business offering great deals. This is an example of a strategic partnership.
Incentives for B2B Partnerships
For just a moment, let’s look at some of the key incentives for entering into B2B partnerships. As mentioned, consumers are happy to develop relationships with other businesses by partnering with a company they trust. Trust is a huge issue in today’s consumer so partnerships instill trust in consumers.
On the business end, partnerships can increase a business’s customer acquisition rate by as much as 45%, and that is without marketing! This is largely due to the potential to continually reach new markets. Imagine what that could mean to your business.
Without putting extra money into marketing, you could broaden your reach by almost 50%. As well, since you as the referring business are trusted and your trust rate is high, your partner will gain instant recognition and trust because you referred that customer to them. All three entities come out on the winning end.
The Perfect Example of a Winning Strategic Partnership
One of the most recognized partnerships of modern times is the Starbucks/Barnes and Noble partnership. With the advent of the internet, book stores saw dwindling profits year after year.
Once the world’s most recognized coffee label entered into a partnership with Barnes and Noble, both businesses saw a significant increase in profits. More books were being sold while coffee sales increased, a winning solution for both.
The importance of B2B partnerships cannot be expressed enough and if your numbers are concerning you, this is probably the solution you have been seeking.