What is joint demand?
Joint demand refers to a situation where the demand for one product or service generates demand for another related product or service. In the context of partnerships, joint demand is an incredible growth driver, where the sales of your strategic partners can spur demand for your products or services.
Consider a partnership between a smartphone manufacturer and a company that produces protective cases. When consumers purchase a smartphone, they’ll often want to protect it from damage by using a protective case. The demand for smartphones and protective cases is interdependent and joint – the more smartphones are sold, the more likely it is that protective cases will also be needed. These partners can work together to offer bundled deals or promotions, encouraging customers to buy both the smartphone and a compatible protective case.
Joint demand goes beyond related products, though. Imagine a manufacturing company that has bought a sophisticated industrial automation system to optimize its production. This system involves automated machinery, sensors, and control software to streamline operations. However, to fully realize its benefits, the company likely needs expert implementation, integration, and ongoing support services.
This is where your integration partners may come in. These partners specialize in seamlessly integrating the automation system into the existing infrastructure. They also provide ongoing support, troubleshooting, and updates to keep the system running smoothly. The success of the industrial automation system relies on the expertise and collaboration of the integration partners, as they play a pivotal role in ensuring the technology’s effectiveness and reliability.
In both of these examples, the success of one product is closely tied to another, leading to the opportunity for collaborative efforts between partners to meet the interconnected needs of their customers.
You can make the most of joint demand in your partnerships by:
- Partnering with companies that offer products or services that naturally complement yours. Look for opportunities where customers are likely to benefit from using both offerings together.
- Creating bundled packages that include both products or services at a discounted price. This encourages customers to purchase both items together, increasing the overall value for customers and sales for you.
- Developing co-branded marketing materials and messaging that highlight the value of using the products/services in tandem. Emphasize how the combination solves specific customer pain points.
- Hosting joint events, webinars, or workshops where both companies showcase the benefits of their combined solution. This provides a platform for engaging directly with potential customers.
- Creating a sense of urgency by running time-limited promotions that encourage customers to take advantage of the joint offer.
- Sharing success stories and testimonials from customers who have benefited from using both products/services together, as real-world examples can help build credibility and trust.
Joint demand can open up new customer bases, increase sales, and strengthen your relationship with your partners. However, it requires careful management, as changes in your partner’s business—like pricing adjustments or product modifications—can impact your own demand.