Strategic partnerships occur when two businesses combine forces to expand their brand reach. Co-branding opportunities add value to your company, increase brand awareness and create brand trust.
1. Access to new customers
A strategic partnership creates multi-dimensional access to new customers, and embedded in this is an opportunity for free advertisement. When you pair with another business, you’ll be able to reach their clients as well. This is an incredibly effective marketing strategy, stretching your reach to double the clientele.
There’s almost no reason for the other company to turn you down if your business is strong enough. For example, Starbucks has no reason to decline Google’s free attempt to secure some marketing, because Starbucks benefits just as much.
The most important part of developing a business is widening your reach with the public. The more people see your product in an area they frequent, the more they will find your product elsewhere.
2. Opportunity to reach and dominate new markets
Along with an extended reach into a wider variety of customers, your brand is now able to expand its horizons in areas previously unexplored.
Consider the example of Google and Starbucks. If you were to associate a company with coffee, you may not have thought of Google. However, after this partner, the ship, internet, and coffee make a lot more sense. With this relationship established, similar opportunities to this could arise for both companies.
Google is so widely popular that this kind of publicity isn’t necessary. However, for a startup company, a partnership like this is an incredible opportunity. If your business has the chance to explore a new frontier (in this example, coffee shops), you could use this publicity to benefit both you and your partner.
3. Added value for previous customers
Another benefit to a strategic partnership is the value it adds to your loyal customers. Reaching customers during a growth period can help solidify loyalty. You want to show returning customers care because it encourages one of the most powerful marketing tools: word of mouth. Customers who hear positive comments about your business are going to tell their friends about it.
You want happy customers who promote your services. By establishing roots with other corporations, you increase the chance that you will pick up some of these free advertisers.
4. Brand awareness
Another important result of a partnership is the construction and increase of brand awareness. The most crucial thing you can do for your small business is to get out and let people know who you are. When you partner with other organizations or influencers, there are more chances for people to be exposed to your logo and other branding, creating organic curiosity.
Brand recognition is an important first step in becoming a household name. You can accomplish it by pairing your service with a successful partner that carries a large customer base. Once you’ve done this, soon other companies will be asking you to partner with them.
5. Brand trust
Brand trust spawns naturally from a good business partnership. When people see your work well with others and generate profit from it, they will be more willing to help out and support your business. It’s all part of creating a healthy, stable and productive network. You’re only as good as the people helping you out, so make sure your business is a worthy investment for them.
You want to create positive relationships with everyone, and partnerships help you meet and work with new people who could help you grow your business when you need it most. Partnerships work in many ways to spur growth and attention for your business; the most important aspect is accepting the right partner.