Social Media Coopetition offers unique business model.
Coopetition is serving up big results in Omaha. Two restaurants in the historic Blackstone District in Omaha have a unique relationship. Bob’s Donuts serves artisanal donuts and coffee, chicken sliders and tater tots. They are located next door to Early Bird, which serves an eclectic breakfast and lunch menu daily, along with cocktails. They have a symbiotic relationship where, although technically separate businesses in a competing restaurant market, they help drive traffic to each other’s businesses. This phenomenon is known as coopetition. Businesses engaging in coopetition actively support each other on social media and in other ways. Customers naturally crave this type of collaboration between businesses and they often reward them on social for doing so.
- builds the customer base of the industry as a whole
- allows businesses to complement each other
- increases the likelihood of word-of-mouth referrals
- drives engagement on social media
Build Customer Base for the Industry as a Whole
The two businesses side-by-side help to create a specific district for artisanal food. Having more than one place to eat breakfast encourages people to go out to eat for breakfast, lunch and of course….brunch. And there can never be too many donuts & cocktails!
Businesses Complement Each Other
During the week, customers might have less time to eat breakfast at a sit-down restaurant like Early Bird, but they may rush in for donuts, chicken sliders and a cup of coffee. People who want to eat an eclectic sit-down meal might want to go out for comfort food, and the customer walking out with donuts and coffee might decide to come back for cocktails at Early Bird later. Both restaurants serve quality, authentic food, and thus cross-pollinate within the same market. They even help each other out in the back of the house and you can find Bob’s influence throughout the Early Bird menu and in the pictures posted on social media.
Social Media is the new Word-of-Mouth Referrals
Consumers love hearing from other consumers. According to a 2017 survey by G2 Crowd and Heinz Marketing, 92% of customers are more likely to purchase an item after reading a trusted review on social media.
“92% of customers are more likely to purchase an item after reading a trusted review on social media.” ~ Heinz Marketing
A customer who is walking out of Bob’s Donuts sees Early Bird and asks colleagues and friends about Early Bird. That customer mentions that they saw Early Bird after leaving Bob’s Donuts. Discussion ensues.
Google local guides and foodies are making their presence known on Google, Facebook, Yelp and others by leaving detailed reviews, pictures and videos of their dining experiences.
Reviews have become crucial to the success of a restaurant, as every restaurant owner is aware of the fact that good reviews can boost popularity and profitability, whereas reviews that are below average have the potential of closing businesses down. That’s why it is crucial for restaurateurs to understand the impact of review websites such as Yelp, Google or TripAdvisor and the role they play in the success of a restaurant.
“Online reputation Management must be a core competency for small businesses moving forward.” ~ Joseph Kenney, 316 Strategy Group
Social Media has given businesses like Bob’s Donuts and Early Bird the opportunity to leverage platforms like Facebook, Instagram and Yelp. When done correctly, both businesses stand to build large followings and raving fans.
Means of Collaboration
The two businesses have chosen to work together using more than mere proximity. They have chosen to help each other out in the kitchen, with recipes, or to honor each other’s coupons or promote each other on social media. This business model is good for the long-term success of both businesses and the customer always wins.
As you begin planning for 2019, which business(s) could you partner with? Look beyond the location & proximity since that may not be reasonable. Look to social media. Which businesses promote a product or service which nicely compliments what your business offers? Explore what a relationship with another business might look like on social media.
In these fast and changing times, the best possible way to prepare for tomorrow is to concentrate on leveraging the tools available to your business today. Waiting is a trap. There will always be reasons to wait to launch a strategic attack on social media or to partner with a competing business. The truth is, your competition is building strong relationships right now.
Don’t wait. Look to Bob’s Donuts and Early Bird for inspiration.