A strategic partnership can help to expand your business’ capacity, service offering, and revenue, but it can also help you retain your best customers.
Picture this: you’ve been working with a new customer for a while now and things are going great! They communicate clearly, they pay on time, and they love working with you. Then that new customer asks you if you provide a particular service which you don’t offer.
Unfortunately, your team just doesn’t have the skills to provide that service, so the customer begins shopping around, trying to find another business they can trust. You’re still working with them, offering the things they originally sought you out for, so what’s the problem?
Your customer finds a business that offers the missing service, and they’re really impressed! They’re amazed by the knowledge, skills, and professionalism of the new company, so they agree to hear them out when that business says they can offer all the services your customer is currently getting from your business…now there’s a problem.
This is a scenario we’ve seen play out with multiple businesses over the years, and we’ve got a fantastic solution – form a strategic partnership.
What is a strategic partnership?
A strategic partnership is when two companies partner together to offer customers more services.
Strategic partnerships can take various forms such as collaborations, alliances, or co-branding arrangements. B2B partnerships allow both businesses to offer customers a broader range of services, and they are mutually beneficial.
A strategic partnership can also help your business to enter new geographic markets or industry segments that you might not have had access to on your own, unlocking new revenue streams and growth opportunities.
You don’t even need to white label your strategic partnership, as clients may be more willing to work with you when they see that you have established partnerships with trusted, certified organisations.
What are some of the pitfalls to avoid when considering a strategic partnership?
Unfortunately, sometimes strategic partnerships can fail. This can be down to a number of factors, such as a lack of clear alignment of goals and objectives. When partnering companies have different visions or incompatible strategies, it becomes challenging to work together effectively.
Another factor for a failed B2B partnership could be poor communication and trust issues. Effective communication is vital for any successful collaboration, and when it breaks down, it can lead to misunderstandings, missed opportunities, and even disputes. Trust is the foundation of any partnership, and if it erodes due to issues like breaches of confidentiality or perceived unfairness, things can quickly unravel.
Additionally, inadequate planning, insufficient due diligence, and unrealistic expectations regarding the benefits of the partnership can all contribute to its downfall.
What makes a successful strategic partnership?
Both parties need to have a shared vision and a common understanding of what they hope to achieve through the partnership. This is usually outlined in writing in a partnership agreement, so there is no misunderstanding.
Open and honest communication between the partnering companies is also vital for a successful strategic partnership. Regular updates, sharing of information, and clear channels for resolving disputes or addressing concerns are essential elements.
It is worth taking the time to outline a well-defined governance structure with roles, responsibilities, and decision-making processes to ensure it runs smoothly.
It’s also vital that both businesses commit to and receive a mutual benefit. Successful partnerships often evolve over time, and the ability to adjust strategies and goals to meet changing market conditions or shifting priorities is also critical for long-term success.
Why you should consider a strategic partnership with Strategy 365
We work with many business to business (B2B) and IT service providers aspiring to be a ‘one stop shop’ for their clients. We understand that it’s just not always viable to become experts in all products, let alone Customer Relationship Management (CRM) solutions! This is where a partnership with Strategy 365 can help.
For example, your business might already provide Microsoft software, marketing services, legal services, business coaching or other IT services to your clients. At some point in that client’s business growth journey, they are going to need a reliable, secure CRM solution which integrates with all their Microsoft software.
By partnering with Strategy 365, you’ll be able to offer your customer a range of options such as Microsoft Dynamics 365 or the Power Platform, and we can get everything set up and working smoothly without the need for you or your customer to have trained in-house sales and technical staff.
Challenges of selling Microsoft Dynamics 365 directly
With Microsoft’s updated CSP Partner requirements, it is now more difficult to become eligible to sell Dynamics 365 licences. As Strategy 365 already meets these requirements, you can be sure of our partnership credentials.
A partnership that secures customers – and generates revenue
Our partnership works in both directions. Should our clients require services beyond the scope of Dynamics 365 and its associated technologies, we can ensure that these enquiries are directed to you. In either scenario, we would agree a mutually beneficial commercial model to help generate additional revenue for both parties (typically a 10% revenue share).
What if you’re not ready for a full strategic partnership?
For those businesses not ready to commit to a full strategic partnership, a less formal, or even just a verbal agreement can be the starting point for a working relationship with Strategy 365. From there, a more structured agreement can be put in at a later date if required.
To find out more about working with Strategy 365, why not get in touch with one of our team today?
To view our latest Partnership Agreement Terms & Conditions, click here.
