Business Joint Venture
The Smart Way to Instant & Legal
Access to Other Customer Databases
Entering into a business joint venture can be a highly effective shortcut to profitable database marketing, without breaching the Data Protection Act UK.
The idea is to piggy-back on the database of another business and offer your product or service to their customers. Key to a joint venture is teaming up with a business whose customer profile matches yours, and who offer a complementary product or service. This ensures your offering is relevant to the target audience.
See the link at the foot of the page for examples of joint ventures using email marketing.
Example business joint venture using mailshots
This is a real example of a voucher that was received in a bank statement. The benefits of this business joint venture strategy are:
Instant access to customer data
The wine retailer gains instant access to the bank's huge database
Find the ideal customers
Bank customers are likely to be of a certain type and social profile that closely match the characteristics of the wine supplier's ideal customer
A recommendation or referral increases conversion rate
Inclusion of the voucher in correspondence from a large financial institution adds credibility and an impression of endorsement by the bank
A good deal for the host business customers
There’s a suggestion that the voucher had been negotiated with the wine supplier as a special joint venture offer for the bank's customers
No breach of confidentiality
The really clever part - there is no breach of confidentiality by the bank, because the wine supplier simply delivers a consignment of generic vouchers to the bank who then stuff them into their statement envelopes
Trackable
If they've established a similar joint venture with several businesses, a voucher code enables the wine supplier to identify the origins of the buyer
Any legal issues?
When considering a joint venture, keep in mind that the Data Protection Act does not allow ‘unreasonable, unrelated or unexpected use of customer data’.
Also ensure that any joint venture email marketing complies with the Privacy and Electronic Communications Regulations, which states that marketing should be for ‘similar products or services’.
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This is really smart marketing.
If the offer is strong enough, it can be a win win win situation. Win for the host business by providing a good service for their customers; win for the passenger business by gaining access to new customers; and win for the customers with a great deal.
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Here’s some more information you might find interesting…
To leave business joint venture and explore the benefits of database marketing, visit our homepage>>
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