Business

Cross-Marketing Benefits and Tips: 3 Cross-Promotion Ideas

Written by MasterClass

Last updated: Apr 21, 2022 • 3 min read

Cross-marketing is a cost-effective way to grow your customer base and tap into new markets. Learn more about this marketing strategy.

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What Is Cross-Marketing?

Cross-marketing, sometimes called cross-promotion, is a strategy where two or more companies collaborate to promote each other’s products or services or launch a product together. Cross-marketing aims to increase brand awareness and drive sales for both parties. Partnering with another business helps you reach new customers within your target market that already follow or support your partner’s company.

You can run cross-marketing campaigns in many ways, including leveraging your marketing channels to promote a joint product release or co-hosting an event where you sell your products and connect with your audiences.

What Are the Benefits of Cross-Marketing?

Cross marketing has many benefits that make it worthwhile for small nonprofits and large e-commerce businesses alike. Cross marketing can:

  • Improve your brand image or reputation: If your company partners with a business with a strong reputation or loyal customer base, your target audience may associate your brand with the quality of the partner company.
  • Help you tap into new markets: An effective cross-promotion strategy allows you to reach new demographics. For example, a legacy company may partner with a newer brand or influencer to reach younger audiences.
  • Lower advertising costs: If you find a cross-promotion partner with a similar audience and following, cross-marketing can be a win-win; you can reach a larger pool of existing and new customers while splitting the costs. Some nonprofits request free cross-marketing or sponsorship from local businesses to promote a fundraiser or charity event, which helps drive brand awareness for the small business.

3 Tips for Running a Cross-Promotion Campaign

Running a successful cross-promotion campaign requires careful planning to ensure your marketing efforts help you reach your goals, whether that’s a higher conversion rate or increased brand awareness. Consider these tips as you build a cross-promotion strategy into your marketing plan:

  1. 1. Create an incentive for customers to engage with your brand. Cross-marketing can help you reach new demographics. Drive engagement with these new audiences by creating incentives like a giveaway on your social media platforms or promo codes for new customers who sign up for your email marketing campaigns.
  2. 2. Develop goals for your cross-promotion campaign. Set goals to track the success of the partnership. Consider how you will capture the new audiences and how many new followers or sales you expect to make, and set key performance indicators (KPIs) to track your results.
  3. 3. Find the right cross-promotion partner. You need to find the right partner to get the most out of your cross-promotion campaign. Look for a potential partner with a strong reputation and a large, engaged following on their digital marketing channels.

3 Cross-Promotion Ideas

There are many ways to create a cross-promotion marketing campaign that helps you reach new audiences. Consider these cross-promotion ideas as you develop your marketing strategy:

  1. 1. Host a joint sales event. You and your cross-promotion partner can co-host an event where your clientele come together to network and purchase products or services. You can use this opportunity to swap business cards and learn more about your potential customers.
  2. 2. Run a joint giveaway on social media. A common online marketing strategy, giveaways require audiences to follow both companies’ social media accounts to enter to win. Both companies gain new followers to help increase sales, so it’s a win-win situation.
  3. 3. Start a project with a cross-promotion partner. Join forces with your cross-promotion partner to start a podcast or webinar that meets your customers’ needs and introduces each other’s brand to new potential customers.

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