Often when I talk to customers or speak at events, I get asked what are my hot tips for growth hacking, or growth marketing, as I much prefer to call it. I dislike the term “growth hacking” because I feel it somehow implies you can hack your way to sustained growth, and I just don’t believe that is true. You can certainly be tactical or guerilla market for short term gains, but real sustained growth takes a consistent focus on growth marketing.
As a vehicle for sharing my best suggestions, I am developing a series of content covering and explaining, what I think are the most effective concepts for sustained growth marketing. So look out for more content starting with the title “Growth Marketing”.
To provide some clarity for what qualifies as a Growth Marketing tactic, my simple definition is that it will obviously have a dramatic impact on growing your business, and generally won’t cost you a significant proportion of your marketing budget. Some of the best growth marketing ideas, don’t actually cost anything, other than some time and ingenuity. Needless to say, they are the best because they grow revenue and reduce both your CAC and Payback Period. If those two terms don’t make sense then read this article which explains these concepts.
I could not think of a better topic to start on than Reseller Partnerships, because this is one of the most powerful concepts I will share, just because done well, they can provide exponential leverage, while also negating some of the critical issues you may not want to tackle in your business.
Reseller Partnerships can take many forms, but as a simple principle, the concept is about working with a Partner organization who is going to sell your product to their customer base. They may have the customers you want and can reach them more effectively than you can. Working with them may radically reduce your risk or cost in acquiring those customers. They may have already built trust and leverage with those customers and their endorsement by association, is powerful for your brand and will fast track your product acceptance. Or they may have a sales team that you can work with which means you don’t need to build that sales team which can save a lot of cost and can be quite attractive, if running a sales team is not high on your list of priorities.
This type of arrangement happens a lot in our industry because it really suits software, as a business model. But it happens in many verticals such as retail, travel, transportation, technology and telecommunications to name a few. If you think hard, you can probably think of some good examples in your own industry, but you may not have thought about who your business could partner with. In which case, you could be missing a massive growth opportunity.
To help you make a start, here is a useful checklist for identifying partners:
- Who already has a relationship or access to the customers you want, and is not a direct competitor?
- Who would directly benefit from being able to offer their customers, your product in a complimentary business model?
- Could you structure a business relationship with that potential partner in a way that it increases their revenue (while also adding to yours) but potentially reducing your normal costs for acquisition. In many cases, a revenue share model might be a win/win while actually saving you all or most of the acquisition costs you have and that has a really positive impact on capital utilization in your business?
- Could adding your product or service to their customer offering, actually improve retention of customers for that partner. If you can add this final option, then you will most likely have a very successful long term partnership?
- Can you get to the appropriate decision makers and form a relationship, without having to invest a lot of your time?
- Does that potential partner seem open to being innovative or have they already formed similar partnerships?
If the organization you think would make a good partner, would be a yes to all or most of these characteristics, then you have a partnership opportunity worth pursuing. Maybe even develop a few options, so you have a plan B and C, and get started.
Time to prove your capability as an innovative growth marketer. Time to get in front of the people you need to influence and pitch your idea. You have the product or service their customers want, and while you will be leveraging their ability and relationships to sell more, you are creating a winning business model for both parties.
To prove we are walking our talk, Metigy will be announcing our first Reseller Partnership, very soon. We expect this partnership will have a profound impact on our growth in 2019 and beyond.
18 March 2019 – As an update to this concept and article, we are very pleased to announce we have formed a Reseller Partnership with Optus and you can read all about how transformative this will be for our business here