Whether you’re a scrappy fintech start-up or an already-established brand, it’s tempting to avoid dedicating precious resources to agency partnerships. But agency partnerships are often vital for businesses across industries to succeed in the long run. Generating leads through partnership referrals, driving prospects down the sales funnel and converting customers regularly are musts for businesses that want to grow their brand.
Below, we highlight our partnership with Hawke Media and examine the benefits of partnership marketing for burgeoning fintech companies.
What is Partnership Marketing?
Also known as a type of referral marketing, partnership marketing refers to the strategic collaboration between two busineses, both of which seek to build brand awareness through the success of the other. Partnership marketing is a vital symbiotic relationship for many growing fintech companies who aim to cultivate a steady stream of sales while gaining trust and credibility through an established brand.
Partnering with an agency provides a variety of benefits to fintech companies, including:
- Boosting brand awareness
- Increasing conversions
- Improving customer acquisition and retention
- Generating website and social media traffic
Customers who already have a positive rapport with a particular agency are more likely to trust and act upon their recommendations or new product offerings. As a result, startups gain access to a reliable channel for generating top-notch leads.
The most successful partnership come from partners that possess complementary capabilities and that provide the other partner access to new markets and channels.
What is an E-commerce Marketing Agency?
An e-commerce agency is a B2B business that specializes in providing its clients with support across several lines of business, including marketing, content, social media, and website development. Some e-commerce agencies specialize in working with businesses in a specific industry—fintech or retail, for example—while others specialize in particular disciplines, like developing sales funnels or social media marketing.
E-commerce agencies are experts in all things digital marketing, allowing them to help businesses find and nurture prospects using a few key methods. For clients, agencies can provide myriad services, including content creation, SEO, paid advertising and email marketing. If a fintech company is just starting out, for example, an agency can effectively function as an entire marketing department. If your internal team is more robust, an agency can support the development of a particular system or project. Their services and offerings are typically very flexible and scalable depending on business needs.
As partners, however, both agencies and fintech companies prioritize the success of the other’s brand. Partners of Hawke Media, for example receive exclusive Hawke services, free consultations for clients, 10% comission for referrals and a 10% discount on agency services. In return, a partner like Tandym showcases Hawke Media on their own site to help visitors determine whether the agency would be a good fit for their marketing needs. In this scenario, both partners benefit from publicity, services and support.
How to Select the Right Agency Partner
As a fintech company looking to partner with a marketing agency, you should first consider your key business objectives as well as the qualities you’d like to see in a partnership. Naturally, you’ll want to ensure there are no conflicts of interest with your partner. You’ll also want to look for an agency with clients who fit within your target audiences.
Fintechs partnering with ad agencies for referrals can be beneficial for several reasons:
- Access to a targeted audience
Ad agencies have expertise in reaching specific target audiences through their advertising campaigns. By partnering with an ad agency, fintechs can tap into their extensive network and reach potential customers who are more likely to be interested in their products or services. This targeted approach can result in higher-quality referrals and increased conversion rates.
Hawke Media, for example, sends client referrals to Tandym when the partnership team believes they would be a good fit for a private-label credit card. Additionally, Hawke Media holds Lunch and Learns for partners so they can share, in their own words, what agency members should be listening for when speaking with clients to determine which would benefit from their services.
- Improved customer loyalty
For fintechs hoping to foster loyalty amongst customers, partnering with an agency is a prudent choice. According to the Wharton School of Business, the lifetime value of a referred customer is 25% higher than that of other customers. Referred customers also are 18% less likely to churn than non-referred customers.
- Enhanced credibility and trust
Collaborating with reputable ad agencies can enhance the credibility and trustworthiness of fintech companies in the eyes of consumers. Ad agencies often have established relationships with their audience, so their endorsement or recommendation can carry significant weight. When a fintech is associated with a well-regarded ad agency, potential customers are more likely to view them as trustworthy, which can positively impact their referral conversion rates.
- Expertise in data analytics and targeting
Ad agencies excel in data analytics and targeting techniques. They can analyze consumer behavior, segment audiences, and identify the most effective channels and messages for specific customer groups. By partnering with an ad agency, fintechs can benefit from data-driven insights to optimize their referral strategies, refine their messaging and target the right customers at the right time.
- Cost-effective marketing solutions
For fintech startups or companies with limited marketing budgets, partnering with an ad agency can provide cost-effective solutions. Instead of building an in-house marketing team from scratch, which can be expensive and time-consuming, fintechs can leverage the expertise and infrastructure of an ad agency often at a discounted cost.
- Focus on core competencies
By collaborating with an ad agency, fintechs can focus on their core competencies, such as developing innovative products, improving customer experience and scaling their operations. Outsourcing marketing activities to experts allows fintech companies to allocate their resources more efficiently and concentrate on areas where they can add the most value.
Of course, it's important for fintechs to carefully choose their ad agency partners. They should consider factors such as the agency's track record, expertise in the fintech industry, alignment with their brand values and the ability to provide measurable results. Effective communication and a clear understanding of goals and expectations are crucial for a successful partnership.
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