BUILDING POWERFUL ALLIANCES - Carolyn Stafford

Smart businesses spend as much time and effort on building alliances with other businesses for cross referral of clients as they do on marketing direct to the end user. An alliance relationship can take many forms, from an informal handshake to refer each other business to a formal joint venture agreement.

If you want to find a great example of how alliances work effectively, then you only need to look to the building and trade industries. Architects, builders, interior decorators, handymen, plumbers, electricians, tilers, carpenters, landscapers and so on are excellent at building relationships and referring clients to each other. They have built their own networks of trustworthy businesses offering complementary products and services and rarely need to advertise or market themselves heavily.

WHAT IS THE AIM?

To better serve your clients and enhance your reputation by being able to refer them to other quality professionals, advisers and service providers

To support the growth of each others business through a steady flow of quality referrals.

WHAT ARE THE BENEFITS TO YOU?

By being 'well connected' you enhance your reputation
You control the relationship with your clients - they come to you first for advice/referrals
Marketing to alliances and filling the funnel with quality referrals (whilst more time consuming) is a better long term marketing strategy than always trying to target customers direct
You are more likely to get customers who are in 'buying mode' because the alliance is able to identify immediate buying triggers from clients before referring them to you.

CASE STUDY EXAMPLE - INSURANCE ADVISER

Below is a list of potential alliance partners for an insurance adviser.

accountants
banking services
business advisers
business brokers
car dealerships
doctors and other health care providers
financial planners
lawyers
mortgage brokersother general & health insurance providers
other local businesses - mainly in complementary professional or personal services area.
real estate agents
recruitment firms
sporting organisations
tax specialists
travel agents
will and estate planning specialists

SOME TIPS FOR CREATING ALLIANCES

Think creatively about who you could build alliances with - some of the most unlikely businesses can be a great source of referrals

Don't attempt to set up an alliance with someone just because they offer a complementary service. Alliances grow more organically from first having a good relationship and mutual trust. A good alliance is like fine cheese - it takes time to mature

Select your alliances carefully and do your homework. They should be like-minded, have the same service ethics and values, similar client types and target markets and a good business name and reputation

Create your own service directory that includes local businesses and other alliances that you know and trust - this can be on your website and even in your front-office as a physical stand with their brochures or business cards

Build a formal alliance referral process. Think about GPs. When they refer you to a specialist they write a referral letter and give it to you to present to the specialist on arrival for the appointment. You may not provide a formal letter, but a great introductory email might work. (The client and the alliance are clear on who has initiated and followed through on the referral)

Have a clear idea on how you see the alliance relationship might work and be clear on why you are seeking it, before contacting a potential alliance

If you agree to establish an alliance, prepare a simple written plan on how it will work and how either party can opt out

Meet regularly to review business referred and any potential joint client issues

Be the first to give a referral to show your intentions are true

Celebrate your successes and wins!

SUGGESTED 6 STEP PROCESS TO ESTABLISH AN ALLIANCE

Meeting 1 - meet for coffee to establish 'cultural' fit
Meeting 2 - you go to their office, meet staff, have them present to you
Meeting 3 - they come to your office, meet staff, you present to them
Trial referrals - you refer each other a client, seek feedback from the client and the alliance (or better still you use their services yourself so - you can recommend them from personal first-hand experience)
Trial agreement - develop a brief written document that outlines goals, referral numbers and success measurement criteria for say 6 months (make sure you measure the referrals/results)
Establish formal agreement - discuss options of how to formalise the alliance - at this stage it might even become a JV where you share office space or it may even be seen that there is a natural flow of business one way - in this case it might need some financial incentive attached to it

Keen to start or extend your own alliance network? Don't waste time. Call that potential alliance partner now. The most it can cost you is an hour of your time and a cup of coffee.

About Carolyn

Carolyn Stafford is the director of Connect Marketing Professionals, a one-stop marketing shop just for small business. Carolyn has worked extensively in the financial services sector. She is a regular columnist in the Business Network section of The Age and the Sydney Morning Herald and a sought after speaker. She hosts regular breakfasts, workshops and events across Australia and is the author of her first book, Small Business, Big Brand.

Visit the website on http://www.connectmarketing.com.au/html/s01_home/home.asp