A successful partnership is a core aspect of any B2B marketing strategy that helps drive growth and revenue. In partner marketing, two firms concur to promote each other’s products or services to increase their clientele and sales.
In B2B, sales cycles are longer and need more touchpoints for a successful sale. In such cases, referrals can help marketers shorten their sales cycle and generate more qualified leads.
Effective partnership marketing enables firms to optimize their existing efforts. It helps them access new channels and distribution networks to increase sales and long-term growth.
What is Partnership Marketing?
Partnership marketing or partner marketing is building strategic alliances with other firms with similar target markets to sell each other products or services. This helps generate growth and profits for both companies.
Identifying target partners and creating compelling value propositions is crucial for a successful partner marketing strategy. But, the partnership is successful only when the goals and visions are aligned.
Why Do Brands Need a Partnership Marketing Strategy?
Partner marketing strategies help brands gain exposure and introduce new products or services to audiences who are unaware of the business. There is a likeability of the partners having existing customers who are interested in the services.
Hence, collaborating will allow brands to reach those potential customers easily. These strategies are great for companies with large customer bases or who want to create brand awareness.
How to Find an Ideal Marketing Partner?
Before looking for potential partners to collaborate with, marketers must map out the goals that they wish to achieve from these collaborations.
Search for partners with the same target audiences willing to offer complementary products or services. Most importantly, ensure that they are not the direct competitors.
Lastly, seek mutually beneficial partnership opportunities. Some include-
- Conducting a combined research study to share the findings
- Hosting or presenting webinars
- Releasing valuable content together
- Referring prospects to one another
Firms must not expect “one-size-fits-all” partnership factors, as the right opportunities can vary from partner to partner. Hence, they must diversify their offerings to make them more likable for lane partners. Research, review their website, or perhaps talk to one of their clients. This ensures transparency about what services the partner provides.
Lastly, firms must consider whether the partner’s goals align with the ones they have set for themselves- is there an opportunity for both companies to benefit mutually? For instance, the shared goals will lead to a solid relationship if both want to drive traffic and revenue via the partnership.
What are the Advantages of Partnership Marketing?
Companies strive to build brand awareness and seek a narrower audience to target. Partnership marketing allows them to build a solid business alliance and use expertise to help the business grow. A well-partnered collaboration will help-
1. Target New Audiences
A strong partnership will help expand the outreach. This increased visibility leads to a higher conversion probability.
2. Cut Marketing Costs
Partnership marketing helps save advertising costs. Firms will no longer need to pay for clicks or impressions since they can mutually promote each other’s products. Marketers who need paid advertising tools can pool the resources and split the expenses with their partners.
3. Boost Brand Reputation
Firms can boost their brand reputation with their partner’s audiences when partnering. Accessing new audiences and leaving a positive impression on brand reputation becomes easy. This creates a “Halo effect”- if a big brand builds strong customer relationships, the customers will not doubt its partners.
4. Bring Customer Value
When partnering, understand the value they can provide the customers with. As firms use their partner’s skills, resources, and expertise, it will help them create better customer engagement, leading to higher customer satisfaction.
5. Minimize Risks
Partnering with a successful company minimizes the risks and helps firms prevent the challenges associated with new ventures.
What are the Challenges of Partnership Marketing?
As per a recent report by Tendo, “B2B Partner Marketing Insights 2022,” top challenges that hinder the execution of partner marketing programs include-
1. Lack of Resources
Even though partner companies drive the majority of revenue, partnership marketing is still under-invested compared to customer-facing marketing programs.
Such programs have restricted budgets, making it challenging for companies to make strategic choices and allocate marketing resources.
At the same time, businesses with small marketing teams do not have the staff resources that can help scale successful marketing efforts.
2. Difficulty in Obtaining Data to Measure Success
Issues in obtaining data to measure success are the next challenge marketers face. It is hard to extract data from partner portals or platforms or requires manual data extraction.
This hampers the revenue attribution and ROI tracking activities. Without accurate ROI data, firms cannot understand budget constraints and increases.
3. Lack of Partner Attention
While “too” many partners do not efficiently communicate, others do not participate in partner programs. Some partners are stuck with multiple vendors wanting to participate in separate programs; others refrain from complex and time-consuming vendor programs.
How Can Brands Overcome the Partnership Marketing Challenges?
1. Define Clear Priorities
A lack of resources is a bigger issue when the partner marketing team has too many competing priorities. Partner marketing leaders must make choices, define the top priorities, and execute them well.
2. Understand the Partner’s Needs
Firms must ask their partners how they need to be successful with the product, service, or brand. Understand their issues and needs and try to address them.
3. Enhance Digital Experiences and Deploy a Portal for Partners
Offer partners good experiences just like the customers. Make it simple for them to participate in the programs. Solid digital experiences will help them find what they need effortlessly.
Additionally, investing in ongoing improvements will help drive development priorities, from reporting and tracking capabilities to interactive training.
Also Read: Driving Growth with Sales-Marketing Partnership
Conclusion
Not all partnership marketing programs are easy; hence, determine the unique collaboration opportunities and begin planning early. Brands must discuss the potential issues upfront and set proper expectations.
Assessing all the details before a partnership will help ensure a positive experience for all the parties involved. Strategic partnership marketing is based on expectations and planning.
Hence, choose a company that can help reach the brand’s and their partners’ goals. Such partnerships help elevate the marketing to the next level.
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