Scaling your business can be a challenging feat. A business with the most dedicated customers can only scale as much as its consumer base allows. Without finding new audiences, a brand is limited and unable to strengthen its positioning in the marketplace. Marketing partnerships are a unique way to tap into another brand or individual’s strength, increasing scale and overall reach.
Marketing partnerships differ from traditional business partnerships in that both parties agree to promote each other. In a business partnership, one party likely owns the partnership and is responsible for the co-development of a product or service. The main benefit of a business partnership is strategic development while a marketing partnership is aimed at increasing both brand’s reach.
There are numerous types of marketing strategies to consider. Here are three commonly used partnerships that will increase your business scale when implemented correctly.
1. Affiliate Marketing
One of the most widely known partnerships in today’s social-media world is affiliate marketing. For this partnership, a company pays an affiliate to promote their brand. The affiliate will create engaging content for their unique audience, driving individuals to the brand. When a user clicks on the link to buy the product, the affiliate is credited for the lead and earns a commission.
On social media, the affiliate is more often than not an influencer. However, anyone can be an affiliate. A blogger can earn commission from a brand by including links to their products via their articles. Those with a YouTube channel can also be affiliates, earning commission whenever someone uses their unique code or link to checkout. The main distinction for affiliate marketing is that a third party acts as the main marketing channel, helping the brand drive new leads.
One of the main advantages of using an affiliate marketing model is that you’re only paying the affiliate for what leads they bring in. There is little to no wasted ad space because the affiliate is creating content on behalf of your brand. This is why selecting the appropriate affiliate is vital. Top marketing agencies can help you select affiliates and influencers to work with if you’re unsure of how to find individuals who will best represent your company.
2. Referral Partnerships
Word-of-mouth marketing remains one of the best ways to obtain new leads. While your loyal customers may be complimentary toward your brand you can also get other brands on board through referral partnerships. In this type of partnership, an agreement is made between you and another company to refer potential clients. Each brand agrees to provide either some service or exchange for free as an incentive.
Referral partnerships work well in the hospitality and travel industries. For example, a hotel can recommend a nearby restaurant in exchange for free drinks or food for its employees. Alternatively, a health and wellness resort can partner with a local chef for workshops in exchange for a free stay at its hotel.
A referral partnership has various benefits, including increased reach, trust, and strengthened relationships between businesses. At the same time, relying on another company to increase your leads shouldn’t be your sole solution. It’s difficult to track, for example, who from the hotel is eating at your restaurant because of a referral. Therefore, it’s recommended that referral partnerships act as one leg to your marketing strategy.
3. Loyalty Partnerships
Don’t think you always need to work with a similarly minded brand in the same industry. Some of the best brand partnerships have come with brands with different objectives, goals, and offerings. These loyalty partnerships are often born out of the need for cross-promotion and the identification of parallels within brand personas.
For example, Spotify and Starbucks teamed up to create unique customer experiences. Spotify listeners could listen to Starbucks-branded playlists on the go or while at the Starbucks store, finding new tracks to add to their custom playlists. Starbucks’ loyal fans who signed up for a Spotify Premium subscription through the Starbucks app received benefits, including bonus reward stars and access to exclusive playlists.
This loyalty partnership worked because Spotify and Starbucks have strong brand identities. Starbucks is known for its mellow tunes in its retail locations. Spotify is a go-to choice for many customers, and the partnership reinforced its appeal.
For your own loyalty partnerships, it helps to think outside of the box. Look at brands with like-minded appeal and see how working together could benefit both companies. Develop a reward structure that will entice customers and consider using tiered rewards or a point system to gamify the collaboration. Doing so will add value to the customer’s loyalty while also boosting both brand’s appeal and positioning.
Key Takeaways
Consumers are engaging with brands in new ways. Thanks to social media, they are interacting with them daily. Their expectations from brands are also changing. In addition to producing great products and services, consumers expect brands to treat them as unique individuals with specific needs. They are looking for authentic, real relationships from brands that provide them value.
One way to do this is by forming a marketing partnership with another brand or influencer. Not only will this increase brand presence and reach, but it also provides users with an incentive. Whether this is a promotional offering or a loyalty rewards perk, consumers should feel appreciated for their loyalty. Those that do are more likely to remain faithful, long-term customers.
