How To Effectively Co-Brand

Starbucks and Spotify Partnership

Starbucks and Spotify Patnership

We’ve all heard the sayings, “they are like two peas in a pod,” or “two of the same kind,” when referring to two best friends, but it isn’t something you typically associate with likeminded brands. However, with the recent trend of brand collaborations, it might be something you hear a bit more often. Brands are starting to see that it is becoming increasingly difficult to stand out amongst their competitors and are looking for an extra push to put them ahead of their competition. It’s not to say that standard advertisement campaigns don’t do the trick anymore, but rather that there are other tricks out there.

Take Spotify and Starbucks as an example. Recently, they announced their co-branding partnership, where the music streaming service pays Starbucks in exchange for giving “stars” to new subscribers. In addition, when customers link their Spotify and Starbucks accounts, they are able to request songs to play in Starbucks as they enjoy their morning coffee. Starbucks strategically picked a brand that would not only offer promotional incentives, but they picked a brand that would also give their customers freedom. Allowing Starbucks’ customers to pick the song that plays while they stand in line for their coffee makes the wait a little less painstaking and makes consumers feel a bit more in control of the entire process. Looking at Starbucks and Spotify as co-branding partnership that works, here are three tips that brands should consider before they start a partnership.

Make sure you have unique offerings. Your partnership should bring something new to the table for consumers that gives them the incentive to engage with your company. Co-partnerships can be incredibly successful, but when consumers feel as though they aren’t actually getting anything from either brand, they are not going to engage.

Keep culture in mind. Your company’s partnership should be with a brand that has similar culture to yours. You want to pick a brand to partner with that has similar goals and visions, otherwise your partnership is likely to have a falling out.

Think about the halo effect. If you want to build your brand through a partnership, pick a company that will make your brand look good. You’re going to want to pick a brand that will reflect positively on your own company. People are going to start associating your brand with your partner, so you need to keep this in mind when you start a partnership.

Like any relationship, things work better when you get to know each other first. So, get to know your potential partner before you make any promises, and who knows maybe you’ll end up tying the knot.

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