Want to know how to establish and implement partnerships to grow your business? There are several key points to remember before entering an agreement.
The do's and don'ts of partnerships was highlighted on a recent work trip to Bali. My two colleagues were in Bali scouting for properties to host an incentive program. One of the properties we visited during our short three-day stay was The Westin at Nusa Dua. Westin Hotels worldwide have established a partnership in the last 12 months with athletic clothing supplier New Balance.
The deal is that guests staying at the hotel can be provided New Balance exercise gear on loan with socks they can keep for just $5 (basically to cover the cost of the socks). New Balance get to tap into the lucrative travel market with a try-before-you-buy approach. If guests like it, they also provide valuable word-of-mouth promotion. In return, Westin Hotels have the opportunity to promote their Wellness Program and guests will talk about their fabulous experience.
The Program is based on the Westin's Six Pillars of Wellness marketing campaign. One of the Pillars is called 'Move Well' which forms the basis of the New Balance deal. Westin not only further cements their brand position as a Centre for Wellness, they also create a unique opportunity to enhance the guests' experience.
On appearance, the partnership is clever.
It's an innovative partnership that has three potential wins. We know what's in it for New Balance and Westin Hotels but there's a third win.
Westin guests also win.
Travellers are able to pack light leaving their exercise gear and smelly runners at home. All they have to do is pay $5 and they receive brand new New Balance gear. The gear is returned at the end of their stay and they get to keep the socks.
The whole concept makes a lot of sense in theory but in practise, it doesn't appear to be working.
The problem with this partnership is that it's not promoted prior to guests arriving for their stay. As a Westin guest, you don't actually find out about it until the check-in process, by which time it's too late. You've already packed those awful runners you never wanted to bring and have lost valuable luggage space. It's too late.
The only reason we found out about the special offer was because we were meeting with the Marketing Director of the hotel and we started asking questions about wellness programs on behalf of our future guests. The only other way we could have found out about it was from reading a sticker affixed to the bathroom mirror in our room. Again, too little too late.
Key to building successful relationships is to know that each partners is going to do their share of the heavy lifting. The best partnerships are those that share the following qualities:
- The partnership is built on creating shared value.
- Everyone wins without one partner foregoing more than the others.
- Partners share a common goal.
- In most cases this is to create greater levels of engagement with the target market.
- It's a brand match
- Partnerships need to be executed on a level playing field. The size or longevity of a company, while important, is not a deal breaker. Thing come unstuck when the brands are not a natural fit. Imagine an endurance sport brand partnering with a fast-food brand. It doesn't work in the hearts and minds of consumers. What does work is if that endurance sport brand
- partners with a nutritional supplement company or an environmentally-focused organisation.
- Brand values need to be in sync for the target market to 'get it.'
- The partnership is properly executed.
- The Westin/New Balance partnership failed for us because it wasn't properly executed. Guests need to know about special offers and opportunities at a time that they have the power to act.
A successful partnership is one where there's a brand fit; both partners know and understand what they're working towards; they know how to create shared value and they have an agreed plan on how to execute the partnership.
- Want to know more about how to implement strong partnerships? We provide a consultancy service for organisations – both short and long term. Email us at caroline@eventsponsors.com.au or phone 1300 366 306.
