The benefits of a complementary partnership
To ensure the success of every new complementary partnership, it’s important the agreement is structured, the deliverables are clear, and both teams are well-organized. Like all aspects of your business, prior to working out a partnership, each entity should do their due diligence on the prospective partner's offerings and define what goals they aim to meet through the collaboration. When you properly plan and organize, a partnership with another expert or corporation can facilitate even more brand recognition, customer loyalty, and sales for both parties.
Three important benefits of complementary partnerships include:
- Additional expertise. Whether you work with another company in your own industry or one from an entirely different discipline, you can leverage their trained personnel and expertise. This aspect of a complementary partnership is especially advantageous because it saves costs for both companies. It further allows you to offer customers advanced products and services otherwise unavailable when your organization functions independently.
- New customer reach. All participating companies have their own independent customer base and marketing channels. Through a complementary partnership, you each can push messaging that promotes your partner’s business to your respective audiences. As a result, both organizations should experience increased brand recognition and an uptick in sales. To further expand reach, you may take this opportunity to create joint advertising and marketing campaigns to promote the new partnership. In turn, you’ll collectively reach larger audiences and convert new customers.
- Increased efficiencies. When executed properly, complementary partnerships can make it easier for participating brands to produce products and services faster with better quality control standards, at more cost-effective prices. Collaborations like these allow you to utilize all available staff experts and vendors to minimize the amount of research and development required and negotiate better deals throughout the supply chain.
How to leverage complementary partnerships for your business
Your business is a unique organization. Often owners see other companies using strategies such as complementary partnerships and don't immediately see how that model would work in their space.
For instance, an entrepreneur who offers classes and consulting as a service might not recognize how a partnership could benefit them. However, it’s almost a certainty that there are other professionals in either the same or adjacent industries who can complement your existing services.
In consulting fields, many experts use a strategy to leverage the platforms of other thought leaders in their specific field and vertical. You can build similar complementary partnerships with these category experts by offering classes through their platforms, and vice versa. Other options include joint publishing ventures and co-hosting courses.
4 Tips for Creating a Strong Cobranding Partnership
- Create a detailed partnership agreement.
- Consider each entity's market reach.
- Compare company culture and mission statements.
- Research each party’s unique market positioning.