Co-Branding Marketing Partnerships

Market_Image_335.jpgAN ESSENTIAL MARKETING TOOL FOR BUSINESSES WHO WANT TO REMAIN COMPETITIVE

Building smart relationships have always made good business sense, and now it’s more important than ever, and the opportunities are everywhere (if you look for and manage them correctly).

Using the power of co-branded marketing partnerships to gain exposure and utilize new distribution channels is not only smart, but it’s also an essential marketing tool for businesses who want to remain competitive and stand apart from their competition.

A unique example of a co-branding partnership is Uber and Spotify. Music-streaming app Spotify partnered with ride-hailing app Uber to create “soundtrack for your ride.” Uber and Spotify offer very different products. However, they share a very similar goal: to gain more users.

Here are a few tips to consider for selecting an ideal partnership:

  • Put yourself in your customers’ shoes and choose a partner that will excite your audience and give you a competitive edge over your competition.
  • Create a partnership that is mutually beneficial for both parties, ensuring you both fill gaps and needs for the other’s business.
  • Establish common goals and detailed terms of who is doing what to benefit both organizations mutually. Define the tasks you will perform and have your partner do the same. From this, you can each be accountable to yourselves, to each other, and to the business.
  • Identify and utilize the strengths of each partner. Bringing out and using the strengths of the individuals within the partnership will add to the motivation, the energy, and the odds of long-term success.

If you’d like ideas on how to promote a co-branded marketing partnership, give us a call today at 856.429.0715. Our team of experts would love to help.

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A Blockhead Digital Character Shows 4 Ways to Do Marketing Right

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Stampy Longnose.

It’s not the kind of name that immediately translates visions of millionaire status or successful CEO personas leading fast-moving, highly successful companies. However, this moniker represents one of the most prolific and successful YouTube operations based on the concept of entertaining kids with Minecraft stories and humor all while generating real-time dollars in advertising income monthly. The marketing approach is one of the most effective used online today.

Simple Equals Incredible

Stampy Longnose, otherwise known as Joseph Garrett of Portsmouth, U.K., in real life is a young fellow in England at the ripe age of 23 years. He currently brings in a respectable gross income of 200,000 British pounds a month creating cartoons of his video game adventures in the world of Minecraft. The game itself is extremely simple to play, like an electronic world of toy building blocks, and the tools used to make the videos don’t require rocket science either. However, Mr. Garrett has managed to generate an incredible following online which in turn has created a viable advertising channel that he then monetizes for access to Mr. Garrett’s audience.

The marketing approach is grassroots and simplistic as well and can be broken down into four steps.

1) Have a recognizable and distinct voice that people remember.

Mr. Garrett’s online voice as he moves across the screen with his character is so different from his normal conversation that he easily translates into a memory-sticking character that then makes it easy to attach a brand to. Mental stickiness is a key factor in customer reception of brand development.

2) Have lots of content and be a good storyteller.

If you can’t tell good stories, find someone who can. Particularly for online marketing, a library of content is a must. Viewers don’t stop with one video; they want to consume and consume a lot. In fact, many of Mr. Garrett’s young viewers are so enamored with his Minecraft stories, they would rather watch his videos than play the game (shocking!).

3) Don’t go it alone.

As soon as the Stampy Longnose idea became a hit, Garrett built a solid team of helpers who provided additional characters to work with as well as give hands-on support with production. It’s not easy to write a 20-minute humor dialog that will appeal to a 9-year-old, but that’s the goal and to do it 100 times or more each month.

4) Don’t stop with a good thing; diversify!

The various characters of Stampy Longnose have also included Stampy the Cat, Stampy, Stampylonghead and so on. Each one of them is now fertile ground for additional merchandising for Mr. Garrett. The production potential is so big, he has now branched across the pond and set up shop in Los Angeles to partner with additional revenue ideas based on the original online Minecraft characters Garrett created. Subscribing to the maxim that good ideas don’t stay good or unique for long, Mr. Garrett is actively seeking new venues for his entertainment product and audiences not yet familiar with his funny way that makes kids laugh.

What Do You Want to be When You Grow Up?

So, when you ask your young child tonight what they want to be when they grow up, don’t be surprised if he or she says a YouTuber instead of an astronaut or scientist. Given Mr. Garrett’s example above, more up and coming business owners should be looking at what worked for the online star and why they aren’t doing the same things to achieve marketing success with their customers.

Branded Promotional Products Make a HUGE Marketing Impact

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People love free stuff; they always have, they always will. This is why branded promotional products are so effective. It doesn’t even necessarily matter what “it” is. So long as it’s free, people are going to come running.

Choosing the right type of promotional products can have a huge marketing impact because of their longevity and because they’re functional in a way that people truly appreciate. If you’re thinking about experimenting with branded promotional products but aren’t sure if it’s something that will be worth your time and effort, here are a few key reasons why now would be an excellent time to start.

Branded Promotional Products Earn You the Right Kind of Attention

According to a recent study, 53% of people used some type of promotional product at least once per week. More than that, six out of every 10 of them said that they tend to keep promotional products for up to two years.

This means that when you invest money in creating that attractive and helpful branded tote bag, you’re essentially putting a piece of marketing collateral out into the world that someone will carry with them for around two years. That is 24 months worth of opportunities for them to use that bag in public, acting essentially as a walking billboard. That’s a long period of time to effortlessly keep your brand at the forefront of someone’s mind.

Integrating Branded Promotional Products Into Your Larger Campaigns

Branded promotional products compliment your other marketing efforts and earn a place among all the other techniques you’re using. You also need to know when and where to roll them out. If you’re the type of company that will be appearing at a trade show, for example, branded promotional products like USB chargers or even fidget spinners are terrific because they can attract attention to your booth and help guarantee that every personal interaction gets off on the right foot.

Think about it like this – the first known use of branded products as a form of marketing dates all the way back to 1789 when a guy you may have heard of named George Washington was trying to get elected president. The commemorative buttons he used at the time undeniably made an impact on the message he was trying to spread. If it worked for George Washington, you could bet that it will work pretty well for you, too.

When you also consider the fact that adding a promotional product into your larger marketing strategy can increase the effectiveness of your other types of collateral by up to 44%, you begin to get a better understanding of why the “all of the above” strategy is one that is more than worth exploring.

The Power of Simplicity in Marketing

KNOW YOUR ENEMY

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You have an upcoming marketing or sales campaign and want promotional materials that have the right combination of imaging, color, design, and narrative to make the biggest impact on your customers. How can you design the right balance for your materials to make that impact?

Balancing Perfection and Excellence

The 19th-century American essayist, Henry David Thoreau, had great advice for us living with the overload of the information age: “Simplicity, simplicity, simplicity! I say, let your affairs be as two or three, and not a hundred or a thousand…”

On the other hand, we can temper Thoreau’s advice with a caveat by Albert Einstein: “Everything should be made as simple as possible, but not simpler.” So how do you strike a balance between perfection and excellence? What are the enemies of simplicity?

The Enemies of Simplicity

Marty Neumeier addresses the enemies of simplicity in his book The Brand Flip. The enemies of simplicity, according to the author, can sabotage your marketing in 7 ways:

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So, remember that in our enthusiasm to succeed, we can create clutter. Start simple and build that foundation. To paraphrase our friend Thoreau, your castles in the air are where they should be. “Now put the foundations under them.”

Mini Brochures Get Noticed!

STAND APART FROM THE COMPETITION AND CREATE A LASTING IMPRESSION

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Are you looking for creative ways to think outside the box on your next promotional piece? You may want to try mini brochures!

Mini brochures not only stand apart from the competition and create a lasting impression, but they offer a convenient size that is small enough to fit into pockets and wallets.

While they are small, mini brochures can pack a big punch for their size. While everyone else is passing out business cards, you can offer mini brochures packed with industry resources, upcoming promotions, helpful tips, a calendar of events, and much more. You can even include your business card design directly into your mini brochure to ensure your contact information is easy to find. You may also consider leaving a blank area to handwrite your own custom message.

What Your Customers are Worth (and Why it Matters)

What is the value of a customer? What profit can they bring this week? This year? Over a lifetime? It may seem like a simple concept, but many small businesses have no idea what a regular customer is worth to their business. This creates two problems:

  • Uncertainty about effective marketing. What is the number of new customers you’d like to attract and what is an appropriate budget to do that? Defining a customer value will guide your marketing strategies!
  • Ambivalence regarding customer retention. With a metric for measuring customer values, you can navigate appropriate parameters for retaining them or expanding their business. Research shows that increasing customer retention rates by merely 5% increases profits by 25% to 95%!

Customer Lifetime Value

While there are many complex formulas for calculating a Customer Lifetime Value (CLV), a basic approach is to break calculations into five digestible portions, like this:

  1. Average Order Value (AOV). On the most basic level, AOV is calculated by how much money is spent per customer in a year, divided by how many orders are placed by that customer in that timeframe.
  2. Purchase Frequency (f). Take the number of orders/visits/transactions from the past year and divide it by the number of unique customers you had. The total equals frequency, or how often an average customer purchased from you.
  3. Customer Value (cv). The base value of a customer can be calculated by multiplying the AOV by the purchase frequency (cv = AOV * f). In this instance, the customer value is being calculated for one year.
  4. Average Lifespan/Time (t). A customer’s lifespan is how long they actively connect with your business before they move on or go dormant. This can be a complex calculation, but to keep things simple you can either give a broad estimate (an educated guess) or you can calculate an average based on a select number of known customers (adding the length of each of their commitments and dividing by the number of customers). For example: Total Length of Commitment/Number of Individual Customers = Average Customer Lifespan (t).
  5. Customer Lifetime Value (CLV). Now that you’ve got a general idea of a customer’s value for a year and the average customer lifespan, you can use these variables for a lifetime value: Customer value (cv) * Average Lifespan (t) = Customer Lifetime Value (CLV)

While this is a very simplified equation, even a ballpark CLV can give you a more accurate idea of how valuable each client is to your business. What should you look to spend in order to gain a customer? How much should you spend to extend their loyalty? A benchmark CLV will give you a helpful base for marketing, loyalty programs, and sales goals for the upcoming year. Take a look at a more complex approach Starbucks has taken to determine their CLV as a whopping $14,099!1

Your Customers Are Your Future

A customer represents the future of your success and your livelihood, and it will be difficult to thrive if you aren’t willing to risk or invest to attract new business. What are your obstacles to expanding your reach or enlarging your advertising? Has the uncertainty of direct mail marketing kept your business from growing? Why not rely on our expertise? We offer sophisticated, simple ways to reach a mass audience for an amount that works within your budget. Need a creative concept or help to carry it to completion? We offer prompt, knowledgeable service for every custom design mailing. Give us a call today at 856.429.07105!

Cash Flow and Marketing: What You Need to Know

ThinkstockPhotos-484376185.jpgCash flow is important in the lifespan of any business, but one of the key things to understand is that it’s about more than just “money in versus money out.” It’s a valuable look into the bigger picture of what you’re doing, and by having a handle on this aspect of your finances, you can take advantage of business opportunities when they arise.

First, you need to understand how every element of your business relates to this cash flow concept, including marketing. To that point, marketing has a very specific relationship with cash flow that you’re going to need to be aware of moving forward.

Hone Your Budget

Yes, it’s true that marketing costs can often seem unpredictable. However, working hard to hone your marketing budget can make these unexpected situations easier to deal with.

To get started, sit down and think about your upcoming marketing efforts in relation to your other expected cash inflows and outflows. You can’t afford to throw just anything at the wall to see what sticks;  you have to be more precise than that. Create a realistic marketing budget (that includes room for experimentation if needed) that is proportional to the rest of your expected business expenses and revenue streams.

It’s All About That Return

What matters most? Return on investment. For this, focus on the metrics that provide you the context necessary to understand your marketing efforts.

Essentially, stop thinking about marketing ROI as just “how many sales did that last campaign bring in?” and don’t be afraid to break things down on a more granular level. Start looking at metrics like your customer acquisition cost. If one of your campaigns was aimed at increasing more traffic to your website, start breaking things down based on metrics like “time spent on site” and “conversion rate.”

It’s important to know how your marketing collateral is performing in terms of overall sales and revenues, but in terms of your cash flow you need to dive deeper than that. As long as you’re able to A) show that your marketing is giving you something in return, and B) you can identify exactly what that something is and when it occurs, you know where the value of every marketing dollar rests.

This, in turn, will give you the context necessary to understand marketing’s affect on cash flow and vice versa. When you know that “X action will pay off in Y way after Z amount of time,” you suddenly know the impact that every marketing decision you make actually has and when that impact is going to occur. This makes long-term cash flow projections not only easier to make but more accurate as well.