Partner marketing refers to a form of negotiated cooperation between two or more organizations or businesses. Partner marketing aims to bring together complementary forces and resources to stimulate demand, broaden markets, and increase profitability.
Benefits of Partner Marketing
1. Cost-effective and time saving
Partner marketing can save a company time and money in comparison with advertising, as the companies involved will be better equipped to advise potential customers, share data and organize joint promotions. B2B partner marketing can be particularly useful when a company is working with a limited budget and requires targeted marketing to specific target groups.
2. Enhanced customer base
Partner marketing can assist in a company expanding its customer base, as customers are offered greater choice and can make informed decisions on which services and products they purchase. They can also be presented with special offers and additional products that they may otherwise not have discovered. B2B partner marketing can particularly help to establish new companies by offering them the opportunity to gain exposure and increase sales while they build up their customer base.
3. Gain access to new market segments
Partner marketing can assist in a company gaining access to a new market segment, as they can expand their customer base by accessing customers who would not normally use their services or products. By working with a new partner, a company can develop and expand markets for both themselves and their partner.
4. Increasing your sales volume
Partner marketing can assist in a company increasing their sales volume, as it enables them to reach out and attract new customers. With this increased exposure, a company can be seen as an industry leader and market leader, or as supporting an industry or cause. By collaborating with other companies, a business can offer its customers more diverse purchase options and related products and services.
5. Improving the image of your business
Partner marketing can assist in a company improving its image by providing a greater association with other companies that have a positive reputation for their products and services. To gain a favorable impression, all involved parties must be committed to the partnership from the outset and ensure that they operate as equals and with self-discipline. All involved parties must also ensure that there is no favoritism shown, or the partnership will be found unethical.
6. Sharing data and establishing market intelligence
When partnering with the same market, data sharing can help to optimize promotion campaigns and identify potential customers or clients who have not yet been approached. This can be useful for companies who are looking for new markets to expand into, as they can experience firsthand the broader spectrum of services offered by other companies. Existing customers are also able to identify which products and services provide value for money as a result of a company’s experiences.
Partner marketing is a fairly new concept that has been used in customer relationship management for the last 5 years. Today, businesses are beginning to see the benefits of B2B partner marketing, as it provides a great way to bridge common customer needs and make them easier to access. By working with other companies, companies can access mutually beneficial partnerships by bringing together complementary forces and resources to stimulate demand, broaden markets, and increase profitability.