What is Cross-Promotion?
Cross-promotion is a mutual collaboration between two or more companies to increase customer bases and sales. Cross-promoting companies rarely charge advertising fees because each party mutually benefits from the other’s advertising efforts. For example, a sandwich shop and a nearby car wash may decide to cross-promote by offering discounts at each other’s stores. Businesses can also cross-promote online, allowing online accounts such as social media influencers or podcast hosts to collaborate with stores or brands to collectively attract more customers.
12 best ideas for Cross-Promotion
If you’re considering cross-promotion with another company, consider these 15 cross-promotion strategies:
Use Social Media
Social media platforms help companies attract new customers and engage with businesses. Even if a business doesn’t operate exclusively online, a social media partnership can help drive traffic between the two customer groups. Media such as videos or images can help promote two brands simultaneously. For example, two cross-promoting companies can publish a joint video ad on both of their social media pages, creating a more integrated audience.
Send co-promotional emails
Co-promotional emails can help you effectively advertise your company and another company’s target audience. This method can help promote joint ventures such as product bundles, discounts, and reward programs. If both companies email customers about each other’s products, both have a chance of getting new customers.
Host partnership events
Offering rewards to customers who purchase products from both your store and partner stores will help you increase sales mutually. For example, a shoe store and a nearby beauty salon might hold a drawing event where every purchase gives customers a chance to win free products from both stores. If shopping increases a customer’s chances of winning, free rewards can help attract customers to both businesses.
Jointly invest in advertising
Apart from social media and email advertising, spreading advertising costs across other media through cross-promotion can help attract customers. Newspaper, billboard, and commercial advertising are more affordable if the two businesses split the costs. Additionally, a billboard or business with two joint ventures can gain customer attention.
Offer Customer promotions
Offering customer reward programs is another cross-promotional initiative that can help boost sales. For example, two restaurants may offer a point rewards program to customers who dine at any of the partner locations. Frequent buyer cards, entry to loyalty programs and exclusive product offers between companies can help drive cross-promotional customer revenue.
Orchestrate public events
If you plan to cross-promote with a local business, plan events in your community. Hosting local events can attract nearby customers and improve the local reputation. Collaborating with public institutions such as libraries, city halls, activity centers or gyms can be beneficial. Depending on your product, events can help promote products that make sense for the community you’re in.
Set up cross-promotional displays
Cross-promotional displays such as exhibition booths or free sample tables help promote your product in two places. For example, a bakery and a nearby laundromat may decide to advertise each other’s services. The laundromat offers bakery discounts, while the bakery offers free samples in the laundromat.
Share products with employees
Sharing products with other employees through cross-promotion can help promote a product’s features. For example, a computer company and a phone company cross-promote by allowing employees in each other’s offices to test new phones and computers. Employees of the partnership firm may eventually become clients.
Create shared booths
Cross-promotional booths can help promote your product during trade shows, business events, or mall demonstrations. If your product works well with another company, sharing a booth can help show customers the benefits of your product.
For example, two clothing companies collaborate by using the same booth at a local mall. One advertises its detergent by explaining how it cleans multiple stains on a shirt, resulting in a wrinkled, but a clean, shirt.
Consider sharing a facility
Some cross-promoting companies choose to share the facility if they plan to cooperate in the long term. For example, a large retail company may cross-promote with a gaming company by building a small arcade room near the entrance to its store. Both the retailer and the game company gain new customers due to the arcade’s convenient location.
Release Joint Products
Collaborating with another company’s products can help both businesses involved sell new product lines. By using this strategy, companies with similar products can create product bundles more easily. For example, two soap companies may collaborate by combining two new products in a bundle deal.
Start referral programs
Hosting a referral program for two companies can result in high customer turnover between the two brands involved. Referral programs that offer customer rewards can also be attractive, especially if your company offers more than one product. Cross-promotional referral programs can offer customers multiple products from different stores.
