How Brand Partnerships Can Revitalize Your Retail Operation
We all know the retail space has been in trouble for a while and the only way for brands to stand out and make themselves indispensable in an increasingly online world is to provide services and experiences which highlight the advantages of a physical store over their digital equivalents.
Sometimes these innovative experiences are provided by technology and sometimes by a hybrid model between physical and online shopping. However, they say teamwork makes the dream work and many retailers are forming partnerships with other brands and leveraging their power combined to create exciting experiences for their customers.
As customers become savvier about their purchases and the retailers they want to engage with, collaborating brands can offer re-energized in-store experiences and new and intersecting segments.
Brand Partnerships
We can actually take some inspiration from the world of human resources here. HR teams have known for many years that sometimes you need to collaborate to access the best talent and retain them moving forwards. By building strategic partnerships with third-party suppliers, a steady flow of talent can be kept moving through the organization.
And unbelievably, the same applies to retail.
The global COVID-19 pandemic transformed customer behavior and the very concept of customer loyalty has all but been eroded. And well, it should. Outside of small local businesses, anyone who is loyal to a corporation needs their head examined. The onus is on retailers to provide customers with a reason to keep coming back for that second purchase and beyond.
Brand partnerships can help provide those kinds of experiences.
"The pandemic triggered a significant shift in customer behavior which has forced retailers to rethink their brand loyalty offerings," said Retail Client Partner at Awin Global, Lee Metters. "With online retail performance up over 100%, and 13% of shoppers seeing the pandemic as an opportunity to try new brands, customers are increasing their propensity to switch between different retailers. Whilst this might offer a sign of encouragement when trying to attract new customer audiences, it does mean that retailers will need to work harder to encourage second and third customer purchases."
How to Establish a Partnership
Firstly, you need to know what it is you are looking to achieve by defining the offering. Think who the audience is, does it make sense for the partnership to contain a cooperative initiative, will the offer be exciting enough to draw people through your store doors and increase footfall?
You need to choose a partner which makes sense for your brand and then think how the combination of your two companies can inspire a sense of discovery among your customers and make them curious to find out more. Consider the emotional state of people only now emerging from pandemic restrictions and who are probably feeling a combination of trepidation and vulnerability combined with a sense of hope for a better future.
Pooling funds can be an effective way of making sure everything you need to make this partnership happen is in one place and ensures you can get the biggest outcome for your outlay.
"I once organized a holiday campaign for ten jewelers located in one mall," said Innovision Advertising Marketing Strategist and Managing Partner, Chelsey Pendock. "Each store contributed an equal percentage toward the total collective budget. The ads promoted the mall as the destination for holiday jewelry gifts, and each of the jewelers’ store names, showrooms and products were featured in the creative. Pooling their funds together created a more widespread campaign and significantly boosted sales."
Data is your best friend when planning the finer points of your collaboration strategy. Consider the customer experience journey and what you and your partner could add to make it even more compelling. Diversity of thought is incredibly important, so brainstorming these ideas with teams you don’t normally work with can yield ideas and innovations you may never have even considered working alone.
Finally, while there is technically no limit on the number of brands you can partner with, there is evidence that involving too many can put customers off rather than entice them in.
"Some studies have found loop giveaways to be ineffective at growing an engaged audience," said Be Inspired PR Cofounder and CEO, Leila Lewis. "Instead, reach out to a couple (three max) of like-minded brands that have similar audience demographics to create a unique product or experience. Make the partnership small and limited, incentivizing your customers to take advantage of the limited opportunity."
Final Thoughts
Brand partnerships have the power to revitalize you retail offering but must be carefully considered. Choose the right partner/s, budget and strategize effectively, and keep the customer experience at the fore of your mind, and you can see increased footfall and returning customers in your retail store.
Brand partnerships are set to be a hot topic at Future Stores Seattle 2022, taking place in July at The Sheraton, Seattle.
Download the agenda today for more information and insights.