Travel meets finance. Transportation meets music. eCommerce meets grocery. Ah, the love stories of today’s big brands made bigger.
We’re talking co-branded partnerships and the power behind these successful relationships.
Co-branding is a strategic business decision which involves the alliance of two (or more) unique brands to provide a new product to their collective consumers. Co-branding continues to gain mass publicity as top brands have recently touted their new partnerships; i.e. Uber and Spotify, Amazon and Whole Foods, and many more. Here are a few examples of our favorite partnerships and the reasoning/results behind them.
GIMLET MEDIA AND EBAY – A TRUE STORY OF STORYTELLING
Storytelling has long been used as a marketing buzzword, but how does it actually apply to growing your brand?
One of our favorite examples is the out-of-the-ordinary partnership between podcasting company, Gimlet Media, and online auction/ecommerce platform, eBay. What could these brands possibly have in common?
It’s simple – Gimlet likes to tell good stories and eBay has the stories to tell.
The two joined forces in 2016 to create Gimlet’s first branded podcast, titled “Open for Business.” The premise was not to sell its audience on “why eBay” throughout the 12-episode series, but rather to engage the audience by sharing stories such as “The Entrepreneurial Mind”, “How to Hire”, “Customer Service in the Digital Era” and many more related to the challenges of running a business.
By combining Gimlet’s popularity among the podcasting community with eBay’s big name in online retail, the partnership was the perfect incubator for successful cross-promotion.
The end result: eBay outperformed its own download goal by 200% in the summer of 2016. Sounds like a peanut-butter-and-jelly type of partnership to us.
BANK OF AMERICA AND ZELLE – A FINANCIAL FAIRY TAIL
What do millennials want? Money for the pizza they spotted their friend! When do they want it? Now!
In this era of having every convenience at our fingertips, companies are quickly catching on to what their consumers want to have right away.
In this co-branding case, bank-based peer-to-peer (P2P) company, Zelle, stepped up when it noticed competing P2Ps hoarding market share. Companies like Venmo were coming in hot with the Millennial audience – Square Cash and Apple Pay quickly nibbling at the pie, too.
Over the years, Zelle has developed partnerships with big banks like JPMorgan, Chase, Citi, and close to 30 more. Most noteworthy is the P2P’s recent partnership with Bank of America.
By partnering with the second largest bank in the U.S., Zelle has quickly become a threat to competing P2P FinTechs. Bank of America has also successfully cut costs by reducing cash and check usage, creating a digital partnership made advantageous to both parties.
According to Business Insider, Bank of America saw “nearly 68 million P2P transactions in 2017 with the service, representing 84% year-over-year (YoY) growth.”
As Millennials continue their distrust of big banks and older generations remain skeptical toward linking their bank accounts to new apps, the combination of Bank of America’s established experience and the convenience Zelle provides serves the market perfectly – it’s the P2P solution for any consumer looking for a quick exchange of currency.
DELTA AND AMERICAN EXPRESS – SWIPING THROUGH TO REWARDS
You swipe right on Tinder. You swipe up on Snapchat. You swipe through your ex’s Instagram. Isn’t it about time you get some rewards for swiping all this time?
This is where Delta and American Express come in. The two companies established a co-branded partnership to benefit those who love to swipe – their credit card, that is – along with those who love to travel.
By becoming a Delta SkyMiles® Credit Card member, consumers are rewarded by earning airline miles every time they use their AMEX. Earning miles is increasingly becoming more attractive as travel rates continue to rise.
In the first quarter of 2018, Delta announced above-goal earnings, along with more than one million credit card accounts opened through AMEX. The synergy between Delta Air Lines and American Express is proving to be successful as the partners continue to create brand loyalists.
Brand collaborations work because two brands come together and meet the needs that their consumers didn’t even know they had yet. All of these successful collaborations are giving chocolate and peanut butter a run for their money.