Lennon and McCartney. The White Stripes. Beyonce’ and Jay-Z. These duos are proof of the power of partnerships. And while they’re not exactly the same as a typical business partnership, these people coming together still created incredibly special things.
It’s no different when it comes to retail partnerships. In this post, we’ll talk about partnerships: the different types, why they’re helpful, and how to get one started.
Types of Retail Partnerships
There are a few different types of partnerships out there when it comes to retail, including:
- Co-marketing: A co-marketing partnership works by teaming up with a company in a similar industry with a shared customer base. You can leverage each other’s platforms to reach a new audience that you otherwise might not have reached.
- Collaborative products: Collaborating with another company to create a new product isn’t just fun, it can be very lucrative when done well. This type of partnership often leads to something new that wouldn’t have existed if the two companies hadn’t connected.
- Co-sponsored events: It’s thought that by 2025, 60% of shoppers will expect brands to dedicate more floor space to experiences than products. Partnering with other stores to co-host events helps you split the cost of the event and reach a whole new audience.
- Distribution/sales partnerships: One brand (the producer) partners with another (the distributor), to sell a service to a broader customer demographic. These partnerships can be particularly helpful to small business owners.
Benefits of a Retail Partnership
There are so many benefits to entering a retail partnership. A partnership helps raise brand awareness by sharing your product or service with a new audience, especially in an oversaturated market. Depending on the type of partnership, you also get the benefit of sharing limited resources like space, budget, and brainpower!
Collaboration with other brands also helps with product expansion and builds customer loyalty. When executed well, the power of partnerships with the right businesses will attract new customers. This allows you to woo them enough to turn them into lifelong customers who tell their friends all about you.
How to Begin a Retail Partnership
Once you’ve decided that starting a collaborative partnership is a smart move, how exactly do you get started? Not every business will make a good partner, so it’s important to consider ones that “fit” with your product or service. While partnering with a complementary business can be a smart move, trying to collaborate with a direct competitor is almost never the way to go.
In general, you want to look for something that complements your business: a fitness club and an athletic brand, a hardware store and a paint brand, a jewelry store and a jewelry insurer. (I mean, c’mon, you know we had to bring it up, right?)
Once you’ve found your perfect partner, it’s time to create a proposal! Make sure you’re designing a proposal that’s personal, convincing, and outlines your suggested terms of partnership clearly. After you’ve had your proposal accepted, it’s time to partner up and make some magic!
The Power of Partnerships and Embedded Insurance
At Zillion, we offer one-click jewelry insurance that saves your business time and money. With Zillion, you can offer your customers protection without the hassle of appraisals or applications. When you partner with Zillion, you send customers home protected, skip the time-consuming appraisals, generate lead fees, and we do the heavy lifting with our concierge claims process.