Set up a Co-Branding/Affinity Marketing Campaign
This type of campaign is ideal for local businesses and services. It is low cost and promotes your business to people in your locality. It also transfers a level of trust or “Social Proof” to your business from other business(es) in the locality.
Co-Branding or Affinity Marketing, as it is sometimes called, is the process where two or more businesses promote or endorse each other. This is generally done when the businesses do not compete with each other such as a plumbing company and an electrical company. It is simple, low-cost, measurable and most important of all – it is very effective.
How and why does co-branding work?
Put simply, co-branding works by transferring the trust a customer has in one company to another company through an endorsement or recommendation. Most businesses will actually do a non-organized version of this already. When a customer asks for something they don’t offer, the response is often “You can try this business nearby, they offer that kind of thing.” Co-Branding is simply doing a more organized and intentional version of this.
People like to deal with businesses they trust and a recommendation from a business they like can go a long way towards building that trust with another business. For this reason, it is important that you are careful about the businesses you co-brand with as it is your word that the customer is taking on this.
Choosing a co-branding partner
As we mentioned, this is important and should not be done lightly. Just because you have a good relationship with another business owner, you shouldn’t jump into a relationship with them. Ensure you know the relationship they have with their customers rather than the relationship they have with you! Things to look out for in a co-branding partner are:
- They do not directly compete on products or services
- They have a similar target market/customer type to you
- They are within a reasonable distance of your target area or location
- They have a good reputation in the area
If a company has all of the above then they are worth discussing the possibility of co-branding with. If they don’t, then it may not be in your interest to partner with them and in fact could be a negative impact, especially if their reputation is poor or service is bad.
Remember: If you wouldn’t recommend the business to a friend or family member, then you shouldn’t recommend them to a customer!
How to Establish a Co-Branding Relationship
Being casual about it doesn’t work. Pretty much any business owner will agree to have you recommending their business to your customers. However, this doesn’t mean that they will return the favor. In fact, the more casual the arrangement, the less likely it is that you will receive new customers. Of course, this shouldn’t be a formal arrangement either and there are no contracts or written agreements necessary. However, there needs to be more than just a handshake on the idea. Below are some suggestions which can ensure a mutually beneficial arrangement will take place, even with minimum effort on the part of your partner.
Co-Branding Implementation Methods
As there are many types of business, there are many ways you can implement the co-branding arrangement. The following methods can be used by either or both partners and the key thing is that both partners feel the arrangement is fair.
In-Store Display or Advertisement
If you both have a premise then you can simply create a banner or retractable banner stand to display in each other’s premises. Putting it beside the entrance/exit or at the check-out area will ensure it is seen and this means that you don’t rely on each other’s staff to do the promoting.
Similarly, you can simply place business cards and leaflets at check-out areas so people can pick them up. Some creative thinking can go a long way here, especially if you have complementary products or services.
On Vehicle Promotion
For those businesses without a premise, your company vehicle can be your best advertising opportunity. With a custom vehicle wrap or on-vehicle graphics, you can create something which catches the eye. Allowing an area for your co-branding partner’s message can be a great way to cross-promote each other. It does need to be done in a way that does not confuse the reader as to which business you are but a small section in a different color and with a clear name and logo can be all it takes to make them stand out.
Shared Marketing
Thinking of doing a leaflet drop or direct mail campaign? Why not run one with a co-branding partner where you have one side of the leaflet each. This splits the cost for you and ensures that people see a connection with the other business. If they know one of the businesses, they are more likely to take note of the other!
Similarly, why not try marketing by running a contest together? Again, this splits the cost and grows the entrant base as both companies will be promoting it. In effect, it can double the reach of the contest and marketing goals.
If you already do trade shows or are thinking about starting, sharing a space or having your partner’s sign on your display (and vice-versa) can increase the effect. Trade Show Displays are a great way to promote your business and if you and/or your partner business can do it then it will benefit both of you. You can even simply contribute to the cost of the other business’s display.
How Effective is Co-Branding?
Like most things, it depends on the level of commitment made. If you both commit to it then the effect can be huge. It can make people aware of your business or even ensure that those who are already aware of you will actually buy from you – such is the power of a commendation from a trusted source. So the key thing to do is to commit to it and ensure your co-branding partner is just as keen as you are.
One simple way of approaching another business to set up a partnership would be to send them a short message and a link to this post so they understand the benefits and ideas behind it.
At Colorado Canopies Print and Signs…
We understand marketing and promotional materials. We can assist you in your co-branding efforts and our in-house graphic designers can ensure your efforts hit the target every time. Talk to us today about how we can help.