What if I told you, you could offer more value to your customers, expand your brand’s reach with improved marketing strategies without denting your marketing budget and messing with your balance sheets?
Well, all this and more is possible with partnered marketing campaigns. According to Hinge’s 2021 High Growth Study, partnership marketing is ranked as the 7th most impactful marketing technique for professional services firms – ranking above more commonly implemented marketing techniques such as event sponsorships, blogging, and even email marketing campaigns.
So, let’s learn more about partnership marketing and how you can benefit from it.
Table of Contents
What is Partnership Marketing?
Partnership marketing can be explained as a collaborative marketing initiative of two or more brands. When companies combine their resources, expertise and marketing strategies to amplify their reach, brand awareness and customer acquisition and retention rate, it is known as partnership marketing.
Partnered marketing campaigns can be of various types, depending on the business and marketing objectives of the parties involved. It could be affiliate partnership, distribution partnership, loyalty partnership, charitable partnership or content centered.
Why Is It Beneficial?
- Expansion into Newer Markets – Partnering with newer brands opens doors to unexplored opportunities and tapped markets. Not only will it increase the brand’s reach but the newer market will easily trust you because of the trust they have in the brand you have partnered with.
- Offering ‘More’ to The Customers – The main objective behind partnership marketing is to deliver more value to customers. More value means improved customer satisfaction which results in increased retention and acquisition rates. It also helps to foster loyalty and brand affinity in the long run.
- Increase in Marketing Budget – You may have brilliant ideas and strategies to improve your brand value but budget constraints may have withheld you from executing it. Partnership marketing combines the resources of all parties involved and enables you to launch larger and dynamic campaigns which were probably difficult to launch with a limited budget.
- Increases Brand Awareness and Credibility – The more market you capture the more brand awareness increases. When you partner with a reliable brand or company, customers begin to associate your brand with it, the transfer of trust improves brand credibility.
- Cost-Efficient – When you partner with another company or brand, they become liable to share costs for the particular campaign and even losses if any. Partnership marketing helps you market your brand in a cost-efficient manner since the investments, costs and losses are shared between partners.
- Shared Data – The best part about a partnered initiative, is the data. The data accumulated by the other brand is shared with you willingly. It allows you a look into the brand’s perspective, their audience’s psyche and gives great insights into the market.
How to Launch a Fail-proof Partnership Marketing Campaign?
- Align Your Goals and Objectives – The partnership should be a lucrative opportunity for all parties involved, therefore it is important to align your goals and objectives. Design your partnership strategy and ensure that it is mutually beneficial. Define your objectives and have quantifiable goals. Once you define your objectives, strategizing your campaign becomes much easier and it also helps you with designing strategies that are effective.
- Define Partnership Terms – The next step is to assign responsibilities and define your partnership terms. Make every term and condition clear before you get into the partnership. From investments to share in profits, everything must be predetermined to ensure smooth execution of the campaign or strategy.
- Combine and Utilize Data – One of the major advantages of a partnership campaign is that it gives access to vital customer data to all parties involved. Together with your and your partner’s data you can get better insights on your audience and use this knowledge to improve your marketing and business strategies as well as for various other purposes.
- Offer Something Valuable – The main goal of a partnership campaign is to offer better returns to your customers to improve retention and acquisition rates. Use your partnership to offer your customers the best. Create lucrative deals that are bound to excite your customers. A valuable deal or reward can determine the success rate of your partnership campaign.
- Create Feedback Loop – If it is the first time you are partnering with a certain brand, feedback can be your guidance system. Urge customers to give feedback and take it seriously. It will help you identify loopholes, also make sure to close the customer feedback loop which makes them feel heard and important.
How to Find the Right Partner?
To leverage the maximum benefits of partnership marketing, selecting the right partner is crucial. Here are some important tips to select the right partner
- Weigh Your Strengths and Weaknesses – Before you commit to any partner/ partners, you need to be aware of your strengths and weaknesses as a brand. Understand your USP as well as have a clear idea of where you are lagging. The right partner will help you overcome your weaknesses and amplify your strengths.
- Select One with the Similar Target Group – Partnering with your direct competitor is not advisable, however selecting a partner that has the same demographic and target audience can help you amplify your reach. Your partnership could also improve customer satisfaction and help you garner organic publicity through word-of-mouth marketing.
- Choose a Partner with Similar Brand Values – Your brand values, ideologies and aesthetics are an important part of your brand image. Choose a partner that has similar attributes and whose aesthetics resonate with yours. It will help you underline your brand message, project a stronger brand image and appeal to the sensibilities of your target audience.
- Identify Conflicts of Interest – When you have shortlisted your partners, it is crucial that you try to analyze and identify any potential conflicts of interest you may have. Your research could be tentative and one-sided, however, if there are any major and prevalent issues, it is best to avoid partnership in such cases.
Improving Efficiency of Partnership Marketing Through Rewards Program
Imagine, combining your resources with another company and expanding the range of rewards for your loyalty programs. The impact it will create is tremendous; it will increase customer satisfaction as well as the efficiency of your program. Combined resources of two or more companies can offer a great variety of rewards to consumers, encouraging non-members to join and existing members to actively participate. To learn how you could amplify your partnered loyalty program, connect with the experienced team of Annex Cloud.