On the surface the idea of having your company partner with a larger company sounds like a good idea. With any luck your company will increase sales and possibly be able to create joint marketing opportunities like presenting together at an industry trade show or by writing a byline article together. However, sometimes there is another side that must be considered when partnering with another company, especially if that company is an 800-pound gorilla such as Amazon. The main drawback is that the larger company might dominate sales and marketing activities and thereby position your company as a small fry that doesn’t merit much attention. What’s even more important is that the larger company can have a direct impact on your customers and your company’s brand.
For example, during Amazon Prime Day (APD), a number of smaller companies spoke about how they approach customer service and want to be responsible for the creating a positive customer experience. One company, underwear retailer Mack Weldon, decided to opt-out of APD in order “to keep its long-term customer experience intact.” Another company, BedBand, sells through Amazon but the founder has “lost all trust in Amazon” when she saw her revenue plummet by half because Chinese companies were undercutting BedBand’s prices by writing positive, albeit false, reviews that appeared on Amazon.
In addition, as discussed in Investor Place, some brick-and-mortar stores, who also sell their products online, like to promote the fact that customers can receive hands-on help by coming into the store. Home Depot said that its customers like to come into the store to get a feel for what they’re buying. Similarly, Ulta Salon, which is a cosmetics company, offers interactive experts in their stores for people who like to try different make-up styles and brands at the store.
When your company decides which partners to work with, do you take into account how that partnership will affect your brand? Immediate sales might look great in the short-term, but what about all of the effort you’ve put into building brand equity?
How important is your brand? Is it worth it to increase your sales simply to be associated with a larger partner even at the potential cost of hurting your customer’s experience? Admittedly, sometimes it’s hard to put long-term brand recognition ahead of short-term sales, but building and maintaining your brand is a goal that every company should strive for.