One way to make your advertising and promotion budget stretch a little farther this year is to consider doing cross promotions. Simple and effective, cross promotions involve two or more groups acting together to reach potential customers.
Start by brainstorming what other types of products or services your customers need. Then think about other organizations with shared values and target markets you could team up with.
Some businesses naturally complement each other. The Second Cup on University Avenue West in Waterloo also has coffee stands on campus at Wilfrid Laurier University. Located in the Frank Peters Building and the new Science Building, these stands offer a range of hot and cold beverages plus muffins, cookies and scones.
To get a share of the lunch market Second Cup needed to offer more substantial fare. So franchise owner Liz Berger approached Hend Lawendy, the owner of Almadina, an Egyptian restaurant in the same plaza as the coffee shop. Almadina now supplies Second Cup with vegetarian and meat sandwiches and pitas, as well as salads. While it doesn’t generate a lot of profit for Second Cup, the cross promotion allows them to attract people who might otherwise have gone elsewhere. And, most of those who buy sandwiches also buy drinks. For Almadina, it means exposure to a market it would not normally reach. Flyers with information on Almadina are available for students to pick up at the Second Cup stands at WLU.
Cross promotions help create a more valuable offer for your target market. Customers of Twice is Nice, a used clothing store in downtown Waterloo, know that any garments they bring in to sell on consignment must be clean. So owner, Deborah Joseph has done cross promotions with a number of local dry cleaners who have provided $5 and $10 coupons for Deborah’s customers. The dry cleaners picked up additional business and reciprocated by handing out flyers about Twice is Nice to their customers. Both companies offer added value and generate awareness in places where competition is not as intense.
Cross promotions also let you hit your target market directly. The Peter Chandler team at financial planning company C.M. Oliver and local lawyer Craig Pinchen of Sloane and Pinchen have presented free retirement and estate planning seminars together. The focus was on long range personal planning aimed at maximizing assets and the tax perspective of ensuring the most effective transfer of wealth to heirs.
The seminars allowed attendees, primarily seniors and prospective clients, to learn about a very important topic in a friendly environment. They were also able to get a feel for both companies presenting the seminars. Both the Chandler team and Craig Pinchen got exposure to each other’s prospects and picked up new clients as a result.
Princess Cinema owner John Tutt has done a number of cross promotions over the years. Recently the Waterloo theatre brought in the movie "Shall we Dance?" a Japanese film about a man who signs up for ballroom dancing lessons. Tutt approached Horst Kessler of the Starlight Social Club which offers ballroom dancing lessons, and together they came up with a plan. Tutt provided Kessler with posters promoting the film. A group from the club organized a dinner and movie night, buying a block of tickets at a discount. Kessler printed up promotional postcards with information on the club. These were featured prominently at the Princess ticket booth. The cross promotion allowed both Tutt and Kessler to reach more customers with less time, effort and money than might otherwise have been required.
One of Tutt’s most successful and long-standing cross promotions is the co-presentation of the Banff Mountain Film Festival. It began at the Princess, but when a larger venue and more sponsorship were needed, Tutt approached Shane Baker at Adventure Guide, which sells a complete line of outdoor equipment and clothing. For a number of years the film festival ran at the former Seagram Museum and has recently moved to the Humanities Theatre at University of Waterloo. This cross promotion allows the Princess to get exposure with Adventure Guide customers. "People who are active also go to movies," Tutt reasons. Since the bulk of the tickets are sold at Adventure Guide, it brings people into the Waterloo store who might not otherwise have visited. While they are there, many shop around and buy other items. The Princess promotes the film festival in its regular film calendar and Adventure Guide includes information about it in a fall newsletter. Baker says he likes the cross promotion because "We don’t have to do all the work and we share the risks and profits."
Joint efforts also give owners a chance to create memorable and unique promotions that may be more effective than traditional advertising. The Princess plans a three-way cross promotion in March with Adventure Guide and Words Worth Books of Waterloo featuring U.S. writer and filmmaker Robert Perkins, author of "Talking with Angels." Perkins will present his film "Into the Great Solitude." Words Worth Books will make copies of the book available for sale and will promote with in-store posters. "The advantage of a cross promotion is the synergy that develops by tapping each other’s customers. We can reach more people than if we were doing the standard author in the store kind of promotion.”
Cross Promotion Tips
Start by brainstorming what other types of products or services your customers need. Then think about other organizations with shared values and target markets you could team up with.
Some businesses naturally complement each other. The Second Cup on University Avenue West in Waterloo also has coffee stands on campus at Wilfrid Laurier University. Located in the Frank Peters Building and the new Science Building, these stands offer a range of hot and cold beverages plus muffins, cookies and scones.
To get a share of the lunch market Second Cup needed to offer more substantial fare. So franchise owner Liz Berger approached Hend Lawendy, the owner of Almadina, an Egyptian restaurant in the same plaza as the coffee shop. Almadina now supplies Second Cup with vegetarian and meat sandwiches and pitas, as well as salads. While it doesn’t generate a lot of profit for Second Cup, the cross promotion allows them to attract people who might otherwise have gone elsewhere. And, most of those who buy sandwiches also buy drinks. For Almadina, it means exposure to a market it would not normally reach. Flyers with information on Almadina are available for students to pick up at the Second Cup stands at WLU.
Cross promotions help create a more valuable offer for your target market. Customers of Twice is Nice, a used clothing store in downtown Waterloo, know that any garments they bring in to sell on consignment must be clean. So owner, Deborah Joseph has done cross promotions with a number of local dry cleaners who have provided $5 and $10 coupons for Deborah’s customers. The dry cleaners picked up additional business and reciprocated by handing out flyers about Twice is Nice to their customers. Both companies offer added value and generate awareness in places where competition is not as intense.
Cross promotions also let you hit your target market directly. The Peter Chandler team at financial planning company C.M. Oliver and local lawyer Craig Pinchen of Sloane and Pinchen have presented free retirement and estate planning seminars together. The focus was on long range personal planning aimed at maximizing assets and the tax perspective of ensuring the most effective transfer of wealth to heirs.
The seminars allowed attendees, primarily seniors and prospective clients, to learn about a very important topic in a friendly environment. They were also able to get a feel for both companies presenting the seminars. Both the Chandler team and Craig Pinchen got exposure to each other’s prospects and picked up new clients as a result.
Princess Cinema owner John Tutt has done a number of cross promotions over the years. Recently the Waterloo theatre brought in the movie "Shall we Dance?" a Japanese film about a man who signs up for ballroom dancing lessons. Tutt approached Horst Kessler of the Starlight Social Club which offers ballroom dancing lessons, and together they came up with a plan. Tutt provided Kessler with posters promoting the film. A group from the club organized a dinner and movie night, buying a block of tickets at a discount. Kessler printed up promotional postcards with information on the club. These were featured prominently at the Princess ticket booth. The cross promotion allowed both Tutt and Kessler to reach more customers with less time, effort and money than might otherwise have been required.
One of Tutt’s most successful and long-standing cross promotions is the co-presentation of the Banff Mountain Film Festival. It began at the Princess, but when a larger venue and more sponsorship were needed, Tutt approached Shane Baker at Adventure Guide, which sells a complete line of outdoor equipment and clothing. For a number of years the film festival ran at the former Seagram Museum and has recently moved to the Humanities Theatre at University of Waterloo. This cross promotion allows the Princess to get exposure with Adventure Guide customers. "People who are active also go to movies," Tutt reasons. Since the bulk of the tickets are sold at Adventure Guide, it brings people into the Waterloo store who might not otherwise have visited. While they are there, many shop around and buy other items. The Princess promotes the film festival in its regular film calendar and Adventure Guide includes information about it in a fall newsletter. Baker says he likes the cross promotion because "We don’t have to do all the work and we share the risks and profits."
Joint efforts also give owners a chance to create memorable and unique promotions that may be more effective than traditional advertising. The Princess plans a three-way cross promotion in March with Adventure Guide and Words Worth Books of Waterloo featuring U.S. writer and filmmaker Robert Perkins, author of "Talking with Angels." Perkins will present his film "Into the Great Solitude." Words Worth Books will make copies of the book available for sale and will promote with in-store posters. "The advantage of a cross promotion is the synergy that develops by tapping each other’s customers. We can reach more people than if we were doing the standard author in the store kind of promotion.”
Cross Promotion Tips
- Pick a target market that you currently do not reach or would like to serve better.
- Brainstorm to come up with other organizations that reach the same target market as you. Be sure they have common interests and values with your company.
- Figure out “what’s in it for them” before you approach the organization. Remember, you will need to find some area of mutual benefit if you hope to enlist their help.
- Be very specific about what you want the other party to bring to the cross promotion, for example, time, money, printing, employee participation. You may want to consider drafting a simple agreement so there are no misunderstandings.