When you are attempting to increase your business, whether from a few thousand customers or from the ground up, growing your client base is key to a successful enterprise. Typical marketing strategies such as networking and mailings do work, but to give your business an extra edge you may want to try less traditional tactics. One great way to do this is to form “host-beneficiary” relationships with established businesses in your area that share the same target demographic.
To illustrate this point lets take a look at a case study that involves a luxury women’s clothing boutique. The boutique arranged a giveaway of a silk kimono to all female customers of a local BMW dealership as gratitude for their patronage. It was required that the garment had to be picked up at the boutique along with an authorized notation from the dealership.
More than 600 women responded to acquire kimono’s that retailed at $100, but cost the store only $16 a piece. On average each woman spent approximately $400 on other merchandise upon their visit to pick up their free garment. That means that the boutique spent $9,600 to generate $240,000 in sales while simultaneously building its clientele.
You can see that host-beneficiary marketing is actually a relatively inexpensive and effective tool in generating unique customers. For host-beneficiary marketing to be optimally efficient you need to know your clientele. Create a detailed profile of your target customer; for example, the boutique knew that their target customer drove a certain type of car, probably belonged to a country or health club and visited a certain type of salon. When you figure out your client base, find local businesses that cater to the same type of person. This way not only does your “host” business get a free way to reward its customers, but you get to grow your client base from a pool of consumers that already have an affinity to your product.