Partnership marketing is a highly popular strategy for a range of different businesses across many industries.
In fact, as of 2023, ‘partnership marketing [is] estimated at $15 billion globally’, highlighting the power it holds.
In short, partnership marketing is a collaboration between two parties designed to help achieve mutually beneficial goals.
These goals will likely vary from partnership to partnership but can be anything from generating website traffic to increasing conversions.
That said, the selected goals must align for maximum impact and to be mutually beneficial for both parties.
If you own a business and are interested in what partnership marketing has to offer, you might be wondering what some of the benefits of it are.
The benefits of partnership marketing include, but are not limited to:
- It allows brands to reach new audiences
- It’s highly cost-effective
- It boosts brand awareness
- It garners greater trust from customers
- It increases conversion rates
1. It Allows Brands To Reach New Audiences
One of the biggest benefits of partnership marketing is that it allows brands to reach new audiences.
Partnering with a different brand exposes your business to a new pool of prospective customers whilst creating a public association with the brand you’ve partnered with.
A remarkable ‘57% of companies use partnerships to acquire new customers’, emphasising the potential partnership marketing offers for businesses from all industries.
The more visible you become to new audiences, the more interest you’ll generate and the greater likelihood that you’ll increase conversions.
2. It’s Highly Cost-Effective
Another benefit of partnership marketing is that it is highly cost-effective.
Not only are you benefiting from the resources and expertise of another business, but you’re also able to extend your marketing budget through the mutually beneficial arrangement.
For instance, say one business’ expertise is in SMS marketing campaigns whilst another is in social media marketing.
Together, these businesses can combine their skills to come up with a strategy that will not only target both of their audiences but will also ensure they get the most out of their marketing efforts.
To find out more about how brand partnerships can benefit your business, contact Tim and the team today. Our expert team has years of experience in bringing brands together to deliver mutually beneficial and cost-effective partnerships.
3. It Boosts Brand Awareness
The power of partnership marketing can also help immensely in boosting brand awareness.
Establishing brand awareness is especially important if you’re in the early stages of business, but remains a fundamental part of growing your brand.
Brand awareness helps to create associations that make a business more memorable, helping to associate brands with actions and products.
Having a brand awareness strategy in place is essential to not only help people recognise your brand but also to garner trust from a target audience.
4. It Garners Greater Trust From Customers
A key benefit of partnership marketing is that it can garner greater trust from customers.
According to Marketing Week, the majority of UK consumers don’t what businesses say in their advertising. Consumers are changing their habits as a direct result, making it harder for brands to appeal to audiences.
Partnership marketing helps elevate this problem, particularly if the brand you’re partnering with already has a stellar reputation. This is predominantly because consumers will associate your brand with a high-quality product or service, and the fact this company is vouching for your brand through the partnership speaks volumes.
By leveraging this sense of trust through partnership marketing, then, customers have the opportunity to create a deeper connection to the brand they discover through a partnership, helping you to gain their trust.
5. It Increases Conversion Rates
Last, but by no means least, partnership marketing increases conversion rates.
As both parties are exposed to a new pool of customers, paired with the added element of trust a partnership can bring, this can have a significant positive impact on conversions.
This is emphasised by the fact that ‘54% of companies state that brand partnerships drive over 20% of their total revenue’. Increasing your conversions as a business not only increases revenue but also helps you to accurately measure the effectiveness of your marketing campaign.
Armed with this information, you’re in a better position to determine what worked well and what needs to be improved on for future campaigns.
As such, if your goal is to increase your conversions as a business, partnership marketing is a highly effective way to achieve this.
We are Lime, an independent partnership and sales promotion agency based in London.
If you’re interested in learning more about partnership marketing and the work that we do, please get in touch with a member of our team today at 02073179280 or at Charlie@wearelime.co.uk.
And for more partnership insights, check out our other articles, such as ‘What Is The Perfect Film Partnership?‘ and ‘The Power of Partnerships‘.
