Have you ever noticed how often brands collaborate these days?
Especially with social media soaring up, the trend for brand partnerships seems to be on the rise.
Whether in any industry, B2B or B2C, nobody hesitates to reach a wider audience by partnering up with other brands in their domain.
However, the goal behind these partnerships might differ from brand to brand. While some may get into the deal because of increased brand reach, some might benefit from the financial aspect.
But no matter what the end goal is - the benefits of brand partnerships are majorly about combining forces and achieving new heights together.
After all, great partnerships are like a PB&J sandwich - I mean, unbeatable!
In fact, according to a report, co-marketed campaigns influenced 68% of consumers to make purchase decisions without even talking to the sales executives.
In this blog, we will discuss the benefits of brand partnerships and why it’s so impactful!
5 Benefits Of Brand Partnerships
We all remember those childhood days when we used to make teams to make the best school project - don’t we? That’s pretty much how brand partnerships work, as well.
1. Reach More People You Didn't Know Before
When it comes to expanding the reach of businesses and boosting growth, there’s no better way out than brand partnerships. By pooling resources, audiences, and expertise, these collaborations offer a unique opportunity for the brands to break through the saturated market.
In fact, 54% of companies say partnerships drive over 20% of total revenue.
Here are several ways in which brand partnerships can help you reach more people:
Shared Audiences: Brands tend to tap into each other’s emotions when they collaborate with each other. In this way, both brands, in partnership, can tap into each other's resources and grow together.
Increased Credibility: Two is always better than one - and going into partnership with a well-known and authoritative brand can help boost the online reputation of the less popular brand. When an authority brand vouches for the other, it can highly impact credibility.
Shared Costs: We all know how expensive marketing and promotional activities can get. But when you partner with another brand, you can share the overhead costs without compromising the campaigns.
Expanded Distribution Channels: If your partner has a strong presence in a channel where your brand is weak (or vice versa), the partnership can help both brands expand their distribution reach.
2. Save Money And Get More Done
Brand partnerships are one of the best ways to upgrade brands that do not have a healthy financial capability to meet their goals. By intertwining the resources of both brands, they can handle complex business issues more efficiently.
Here's how brands can save money on brand partnerships:
Shared Marketing Costs: When two brands get into a partnership for a marketing campaign, they have the chance to split the expenses and make the budget affordable for both of them. It also includes the cost of advertising, event sponsorships and promotions.
Shared Resources: As partners, you can share office space, equipment or personnel for specific projects. Like this, brands do not need to bear the expenses alone, and they can share the overhead costs.
Bulk Purchasing: When both the brands join forces and share the costs, they can afford resources in bulk. When resources are purchased in bulk, brands can also avail exciting offers and discounts.
3. Increase Your Credibility In The Industry
These partnerships can play a major role in framing your brand’s credibility. Especially, if you are a well-known brand, who you partner with can make a huge difference in your brand image. Maybe that's the reason 82% of B2B leaders plan on adding more partnerships to their roster.
Here's how brand partnerships can help in enhancing credibility:
Association with Established Brands: When you, being a new brand, partner with one of the renowned brands in the industry - you enjoy the opportunities of establishing yourself as a credible source as well. The established brand’s online reputation can pave the way for the newer brand, that will make it easy to secure a place in the market.
Shared Expertise and Knowledge: You can’t be the jack of all trades, but when you partner with another brand, your chances of showing your expertise in the specific domain increases. You can collaborate jointly on co-authored research papers, joint webinars and shared content.
Collaborative Events and Conferences: Events are great for a brand but it takes a lot of resource investments which might seem difficult to manage for a brand alone. But when a partner comes in, every responsibility gets divided and both brands can leverage their networks to increase reach and strengthen their positions in the industry.
4. Establish Yourself Faster In The Market
Brand partnerships can be instrumental in accelerating a brand's establishment and recognition in the market. By aligning with an existing, reputable brand, newer or lesser-known brands can leverage their partner's trust, credibility, and audience to gain a foothold more quickly.
Here's how brand partnerships can aid in faster market establishment:
Access to Established Customer Base: By partnering with a reputable brand, you can tap into the already existing customer base of your partner, and get immediate exposure to a larger audience that would have otherwise taken you years to build alone.
Joint Marketing Campaigns: When two brands come together for a specific campaign, their collaborative marketing efforts and resource investments can have more impact and better reach than any singular campaign.
Strategic Positioning: The right brand partnership will help in positioning your brand in a specific domain. This makes it easier for your target consumers to understand the brand's position in the market and relate to the brand’s value proposition.
5. Split Risk And Share the Load
What is business without risks - risks are common for every business but how you mitigate them makes all the difference. When two or more brands come together, they can leverage each other’s expertise, strengths, and resources for a more balanced approach to challenges.
Here's how brand partnerships can help businesses split risk and share the load:
Risk Diversification: When brands enter multiple markets or demographics through partnerships, they can diversify their portfolio and ensure that my not challenges don't cripple their entire goal.
Diversified Investment: It can be tough for new brands to shoulder all the financial burdens alone for a new venture. But, with a partner, you have ample scopes to distribute any challenges or setbacks that you might face during the venture.
Market Testing: Before you set off for a full-scale launch, brands can collaborate with their partners to work on pilot projects to test the market condition. Such an approach helps both partners to gauge the market response with a comparatively smaller investment and risk.
How To Identify The Right Business Partner
It’s no less than a challenge when it comes to identifying the right business partner - but it happens to be one of the most crucial ones that can make or break your business.
Here’s how you can ensure that you have found the right business partner:
1. Should Have A Growth Mindset
Adaptability is the key skill to look for in your partner. As the business world is ever-changing, it might be a challenge to grow the business and achieve goals together if they aren’t adaptable.
2. Should Have A Risk Tolerance
Everyone doesn’t have the same risk tolerance. While you may be eager to take new risks all the time, your partner might want to play it safe. Such a difference in opinions can often affect business decisions in the future.
3. Should Have An Emotional Intelligence
Emotions are not only our best friends but biggest enemies too. That’s the reason, while choosing a partner, you need to ensure that your partner can understand and manage their emotions. If you choose a partner who has a higher emotional intelligence, they can help you handle challenges with empathy and understanding.
4. Should Have A Strong Network
Networking is the key if you want to achieve success in today’s business world. That’s why it’s important to choose a partner who already has a strong network of their own. When both of you join your networks, the potential to reach people doubles up and you can create brand awareness much faster.
5. Should Have A Long-Term Vision
It is important to discuss about both of your long-term goals and aspirations. Maybe you do not want a partnership five years from now but maybe your partner needs ten years. Discussing it beforehand will help both of you stay on the same page without leading to any misunderstanding.
Steps To Successful Brand Partnerships
Step 1: Set Clear Objectives
Brand partnerships offer a powerful way for businesses to pool their resources, leverage their strengths, and create a combined force that can drive growth and success.
However, setting on a brand partnership journey without well-defined objectives is much like sailing without a compass - it can lead to confusion, misalignment, and wasted efforts.
How To Set Clear Objectives
Clear objectives help in aligning these elements towards a common purpose. Without a shared vision, partners might end up pulling in different directions, resulting in inefficiencies and a diluted brand message.
Understand Each Brand's Goals: Before diving into the partnership, both brands should clearly understand what they want to achieve individually. This could be increasing brand awareness, tapping into a new market, or launching a new product.
Define the Purpose of the Partnership: Why are you partnering? Is it for a joint marketing campaign, a product collaboration, or a long-term strategic alliance? Clearly defining the purpose will help set the direction for the partnership.
Identify Key Performance Indicators (KPIs): KPIs will help you measure the success of the partnership. For instance, if your objective is to increase brand awareness, a KPI might be the number of social media mentions or website traffic.
Celebrate Milestones: Recognizing and celebrating achievements, no matter how small, can boost morale and strengthen the partnership.
Step 2: Alignment Of Complementary Values
Ever wondered why some brand partnerships just seem to work like magic?
Well, one secret sauce is all about sharing similar values and goals. Imagine your team up with a buddy who cares about the same stuff you do - suddenly, your teamwork becomes super powerful, right?
That's what happens when brands with complementary values team up.
When brands have similar values, they can tell a story together that makes sense. This helps people understand why the partnership is happening and what it's all about.
Besides, employees from both sides understand the purpose and direction, making teamwork smoother and ideas more creative.
How Brands Make Values Match
Making sure values match is super important. Here's how brands do it:
Talk About Values: Both brands talk about what's important to them. This helps them see if they think the same way.
Share Plans: They also talk about what they want to do together. This helps them make a plan that fits both of their goals.
Stay Honest: It's really important for both brands to always be honest about what they want and how they feel. This helps avoid problems later on.
Check and Adjust: Every so often, both brands check if they still agree on things. If something changes, they can adjust their plans to make sure their values still match.
Step 3: Have Open Communications
When businesses team up, they bring different skills and ideas to the table. If they don't talk openly, they might not understand each other's strengths and thoughts.
How To Have Open Communications
Making open communication happen takes effort. Here's how businesses can do it:
Listen and Share: Both businesses should listen to each other's ideas and share their thoughts. This way, everyone knows what's going on.
Speak Up: If something doesn't seem right, it's important to speak up.
Regular Check-Ins: Businesses should have regular meetings to talk about how things are going. This helps them catch any problems early and make changes if needed.
Be Honest: Being truthful is really important. If something isn't working out, it's better to be honest about it. This way, both businesses can find ways to fix it together.
Step 4: Prepare Legal Partnership Agreements
Now, I know legal stuff can seem a bit boring, but trust me, this is like the safety net that keeps your awesome partnership from turning into a mess.
It lays out exactly what each partner is bringing to the table, who's in charge of what, and how you'll share the wins (and losses!).
It clearly mentions what happens if things don't go as planned - like if one partner wants out or you both hit a roadblock.
A partnership agreement helps you divide the "slices" of responsibilities, profits, and losses in a fair and agreed-upon way. This way, no one feels like they're getting the short end of the stick.
How To Prepare A Partnership Agreement
Understand Your Partnership: Make sure you and your partner clearly understand what you're collaborating on. Discuss your roles, responsibilities, goals, and what each party brings to the partnership.
Consult Legal Experts: Legal stuff can get tricky, so it's wise to consult a lawyer or legal expert specializing in business partnerships. They can provide you with personalized advice and help you create an agreement that covers all the important aspects.
Outline the Agreement: Work with your legal expert to outline the key elements of the partnership agreement.
Here's what you'll need to cover:
- Partnership Structure
- Roles and Responsibilities
- Profit and Loss Distribution
- Dispute Resolution
- Exit Strategy
Brand partnerships are more than just a fleeting trend; they're a strategic move that can propel businesses to new heights. When brands team up, they combine their strengths, expertise, and followers. This means more creativity, broader reach, and often, a fresh perspective that can lead to innovative products or campaigns.
Moreover, these collaborations can save both brands time and money. Instead of starting from scratch, they can leverage each other's assets, be it technology, distribution channels, or marketing prowess.
And let's not forget the trust factor! When a brand you love introduces you to another brand, there's an inherent trust that works its magic.
So, whether it's a limited-time product launch or a long-term collaboration - these partnerships are a result of the power of unity and creativity.
If you want to step in and leverage brand partnerships for your business, you can give Statusbrew's collaboration features a shot! Statusbrew offers robust collaboration features that can redefine the way you work together with your partner brands.
Statusbrew is an all-in-one social media management tool that supports Facebook, Instagram, WhatsApp, Twitter, LinkedIn, YouTube, TikTok and even Google My Business.