Question

Topic: Strategy

How Do I Go About Building Strategic Alliances?

Posted by Anonymous on 4/1/2008 at 11:02 AM ET 75 Points
We are a locally owned (Rio Rancho, NM) medium sized financial services firm (growing fast). Our target markets are retirees and pre-retirees ages 45 - 55 (pre-retiree) and ages 56 - 80 (retirees). We do not focus on super affluent clients, although we have some, rather the majority of our clients have anywhere from 50,000 to 100,000 with us.

I guess my question is two part, who should we build strategic alliances with, and how do we approach each group?

I feel inadequately prepared in applying the theory. I know we need to get in front of someone to form an alliance but what is the best way to go about it and not come across desperate?
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RESPONSES

  • Posted by Jungle on 4/1/2008 at 11:25 AM Accepted
    Jason,
    Developing strategic alliances starts with understanding the needs of your best clients. What are the problems, challenges, and issues they have that you are the answer to?

    What is your answer/approach to solving their problem or need?

    What's the value that clients get from working with you? In other words, what are the specific improvements, results, outcomes and experiences that clients get from working with your company?

    Once you understand the above items, then you are best positioned to identify other businesses who have a similar target audience, but offer services and products that complement yours.

    Then, you'll need to identify "what's in it for them" to partner with you in a strategic manner. To begin with, you'll need to identify what problems or needs your potential strategic alliance partners have that you can answer for them (starting to see the pattern?).

    With these key points in mind, you can then approach potential SA's with your strong value proposition for mutual clients and a compelling "what's in in for me" from their perspective.

    Above all, emphasize the value that you provide to the marketplace.

    Hope that helps.

    George
  • Posted by Frank Hurtte on 4/1/2008 at 11:59 AM Accepted
    Jason,
    I work with a couple of companies in your industry.
    Based on previous experience, here are the people you need to build strategic alliances with:
    Attorneys - your clients need to have wills
    CPA - your clients need to have taxes done
    Bankers - your clients need to make use of some of their services
    Realtors - your clients will eventually need their services

    Here is the way I suggest you set things up. Let's think about the Attorney. I would select an up and comer, phone them. Say, "I do financial planning and have a number of clients that may need some of your services, would you mind meeting for 40 minutes to brief me on the process as you see it? Once in the meeting ask all the questions you have about wills. Then ask if it is ok if you refer people to him (or her - my own Attorney is a bright lady named Cheryl). Then explain how you may be able to help any of the attorney's clients.

    This is the start of a strategic relationship. And, by the way, you do not need to be tied to a single Attorney. Establish multiple relationships... one or two will grow. And those would be the people you refer to.

    Drop me a line if you want to chat about specific details

    Frank Hurtte
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