Organizations form partnerships all the time. Whether it’s a vendor’s expertise or a consultant’s advice you need, strategic partnerships can be an asset. Putting multiple heads together strengthens each partner in a sea of competition and rapidly changing markets.
Discount programs represent another opportunity for companies to join forces while enhancing client and employee experiences. These programs incentivize customers to keep using both of your products. And, for staff members, it’s another way to reward their dedication and hard work. The reasons below outline how discount programs build and strengthen business-to-business relationships.
Provides Turnkey Solutions
A corporate discount program sounds good on paper. But how do you implement it quickly while providing a personal touch? You don’t want to throw up a web page with a list of businesses where employees can get discounts. While it’s better than nothing, there’s a good chance some staff won’t know it’s there and others will forget.
If you have a mostly behind-the-scenes partner managing the discount program, your company can implement something more dynamic. Staff can access a customizable website and receive individualized emails about available perks. Employees receive a form of recognition that’s personalized and memorable. Your company also gains an opportunity to extend its brand, reminding staff of their total rewards package.
Likewise, the businesses offering your employees exclusive discounts gain exposure and encourage repeat visits. Some brands will be familiar names and favorites. Others will be relatively unknown. Either way, your staff can choose which discounts they take advantage of and potentially reduce recurring household expenses. By working together, all partners are able to implement a rewarding program for everyone.
Extends Benefits
Some employers want to provide their employees with an extensive array of benefits. Think financial planning tools, long-term care plans, and pet insurance. Most people assume larger companies with additional resources can and do offer better benefits. But not everyone has a desire to work for a large conglomerate.
Smaller and medium-sized companies can be more attractive places to begin, grow, or wind down a career. For instance, greater flexibility is one of the advantages of joining a smaller firm. So is the chance to make a direct impact on daily and ongoing decisions. However, businesses with fewer internal resources can rival the perks of larger companies through discount programs.
These programs bring companies together to extend access to benefits like ID theft protection and insurance for serious illnesses. The companies offering the products get new leads and clients without hounding on doors. And current and prospective employees gain the desired advantages of working for smaller businesses without losing out on bigger perks.
Encourages Cross-Promotion
Loyalty programs are a dime a dozen. Nearly every organization vying for market share has them. These programs can be effective, encouraging consumers to sign up for access to exclusive savings and rewards for repeat purchases. However, because these programs have become so common, consumers no longer see them as a novelty.
Sure, they still appreciate the discounts, but they increasingly want more bang for their buck. This is what strategic partnerships between businesses with loyalty programs can offer. The key is for both companies to offer complementary rewards and serve the same customer base. For example, what do people need when they’re traveling? Food and refreshments on the go.
Therefore, it makes sense for an airline to partner with an international quick-service restaurant. When travelers purchase food and drinks from the restaurant, they earn frequent flyer miles. Another example is a bank offering credit card cash-back rewards when customers order from online businesses. Cross-promotions like these bring in new clients for partners and offer clients extra incentives.
Lends Credibility
From a consumer’s perspective, recommendations from a trusted source reduce skepticism. They are more likely to move forward with checking out a business and making a purchase. Survey research reveals that 75.5% of consumers trust online reviews when deciding what to purchase. In addition, 49% of shoppers put their faith in reviews as much as recommendations from family and friends.
Discount programs give consumers and employees easy access to online reviews within a single platform. Plus, partnerships between well-known and up-and-coming businesses lend credibility to lesser-known names. If a trusted brand is endorsing or partnering with the new kid on the block, there’s something special there.
For established businesses, discount program partnerships also lend credibility. Yes, people already know about these brands. But it doesn’t mean they’ve experienced them directly or recently. Showing a willingness to engage with other market players and share resources adds to a positive image. Established names may also make inroads with consumers hesitant to try big-name brands.
Fostering Partnerships Through Discount Programs
When you think of strategic partnerships, you might think of mergers and supply chain agreements. Discount programs might seem less glamorous, but they are avenues to building relationships between companies that benefit many. Employees gain access to a larger array of total rewards and necessary benefits. It’s a way to provide personalized recognition while solidifying recruiting and retention efforts.
On the consumer side, businesses gain exposure, clients get better deals, and companies increase trust. From first-time to repeat customers, discount program partnerships can enhance how consumers perceive brands. Incentives add to the list of positives, but it takes collaboration to bring them to the table.
