Key partnership insights

The popularity of this right-sized offering can be traced to functionality and a sizable built-in channel. "Most small business owners aren't accountants. But they have to reconcile the books," observes Sandy Kraft, Group Product Manager, Online Transactions, at Intuit. Entrepreneurs would rather spend their time doing business than keeping track of it. Designers want to be designing; contractors and construction workers want to be on the job site; and service providers want to be out in front of their prospects selling. Any product that enables them to spend more time doing is likely to see great marketshare.

Despite a built-in potential audience of 2.8 million Quick-Books users, however, take rates were initially slow. While Kraft feels that the ability to identify and append business addresses to consumer direct mail efforts was a key challenge, leveraging Intuit's relationship with the accounting community would likely also have helped to increase initial sales.

The next two partnerships are based on a right-sized offering, using a physical aggregator as the contact channel. Both product and channel are relatively customized, creating a relevant offer communicated in a compelling way.

Partnership: American Express and Costco

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