Partnership Marketing: Collaborating During Tough Times & Beyond

Ego is the enemy. In a world where everyone takes pride in being self-sufficient, a partnership is an idea that many people like to frown upon. Anyone who is not able to fend for him/herself is considered lazy and is swiftly shamed then cast aside. After all, as Charles Darwin once said, “survival is for the fittest.” Undoubtedly, collaborations are not particularly popular as everyone tries to prove to society at large that they can indeed make it independently. Consequently, we have inadvertently forged a highly individualistic culture. However, can this philosophy of individualism work in business environments? Let’s see how this plays out.

Unfortunately, that mindset also manifests in commercial settings. For businesses, not only want to be perceived as strong companies, but they also don’t want to risk revealing their inner workings to outsiders and get compromised in the process. Indeed, their fears are well-founded, as the marketplace is a ruthless battleground. The enemies show no mercy. The prevailing maxim is: hunt or be hunted. Here comes the good news.

Coming Together
If there is one single lesson, we ought to have learnt from the raging COVID-19 pandemic, that would be the power of coming together. No one can truly survive by themselves. So far, joint ventures among the players in the pharmaceutical industry have produced vaccines to combat the deadly virus. There is no doubt that partnerships can offer so many opportunities for companies that can see the bigger picture for every potential engagement. You may be feeling alone and stuck on an island of independence. Yet there are plenty of opportunities waiting for you across the mainland only if you look close enough and let your ego go.

Partnerships can benefit various facets of your organization depending on the nature and goals of your business. One of the prime areas for collaboration is marketing in what is commonly referred to as a partnership marketing─an agreement to work with another organization to create a mutually beneficial marketing relationship. There are several points of cooperation in the vast world of the marketing value chain─from production, distribution to promotion. For instance, you could jointly manufacture a product or partner in carrying out promotional campaigns. The latter is the most common one that we see today. But you can always go above and beyond.

A local, typical example would be Safaricom’s Lipa Na Bonga Points where they have partnered with several other organizations in payment using the loyalty points. Some companies include Kenya Airways, CPF Financial Services, and Kenya Power among many others. At the onset of the pandemic, the programme was extended to include more companies providing much-needed relief for customers reeling in the aftermath. It was a win-win for Safaricom and all the other companies participating in the scheme. Sounds interesting, exhilarating, even productive. So, how can you get started on strategic partnerships?

Marketing partnerships don’t have to be extravagant. You can start small and grow with time whilst the companies involved get to learn about each other as well as the possible opportunities that lay therein. As lucrative as it may look, you must be judicial in selecting the right partners to work with. You cannot get involved in partnerships with just anyone. When scouting for a marketing partnership, consider relevance, credibility/trust, and audience. Let us look briefly at each of these factors in turn.

Relevance
By now, it’s pretty obvious that you can’t start a marketing partnership that does the same business as you. Accordingly, you need to cast your net wider afield and consider companies that are complimenting your product or service. The bottom line is that the partnership should not only be relevant to both partners, but the customers too. Recently, for instance, we saw Visa─the global online payment solutions provider─ partner with several SME businesses in Africa to provide alternative digital payment options. In this arrangement, Visa earned its fees, the onboarded businesses reduced risks in holding physical cash, and customers got convenience. Therefore, thoroughly review the business model of your soon-to-be a collaborator to ensure that it is relevant for both parties involved. Next, can you trust your partner?

Credibility/trust
Reputation is everything. When thinking about starting a partnership with another organization, you need to analyse their credibility and trust, assuming that everything is in order in your house. The power of partnerships emanates from leveraging the goodwill of both parties to drive growth. So, it won’t benefit you to get into a partnership with a company that has lost credibility and trust among the audience. Even after successful inking of the partnership deal, constant monitoring is still necessary. In the unfortunate event that disrepute takes place, make sure you cut ties immediately to protect your brand. Lastly, is there congruency in your audience?

Audience
This is the crux of the marketing partnership strategy. If this is not configured properly, the entire programme may sadly not amount to anything at the end, regardless of whatever you do. Your partner needs to serve the same audiences as you do, at least in part. Thus, before rolling out, jointly analyse the audiences of both companies and draw up buyer personas to see if you are a good fit for each other. Complimentary products and services can work very well. With the audience locked, you now have the perfect combo to go ahead and do great things together.

Final Thoughts
When you think through the potentialities of partnership marketing, you realize that one does not need to go it alone. Certainly, you can reap big. Cooperating with another organization can help you reach newer and bigger customer segments that you had previously missed. As you plan your partnership marketing during the pandemic and beyond, focus on the following: align your mission and vision, build partnerships for the long term, do only what your two brands can do, earn the right to talk to the customer, be a great partner, and lastly have fun while at it.

Stephen Osomba currently serves as the Lead Partner, Communication & Marketing at SMD Consulting Associates where he helps SME clients deliver value by adjusting the solutions to each company's mission, product, strategy, and industry.