“You have to learn the rules of the game. And then you have to play better than anyone else.” – Albert Einstein
WHAT IS AFFINITY MARKETING?
As one of the most misunderstood marketing practices, the term affinity marketing is often met with some confusion. Also referred to as partnership marketing, affinity marketing focuses on developing strategic partnerships between complementary brands and businesses.
A mutually beneficial marketing strategy can then be adopted between the pair. It does not limit only to the big corporates, Start-ups and developing businesses can also create an affinity group to enhance their marketing side. Both parties should benefit the partnership since this strategy can increase brand loyalty and market awareness for both organizations.
An example of a simple affinity marketing is sports teams which show various logos on the clothes that they wear. The sports teams get money and sponsorship to buy better equipment and to spend more on the team. The logos get their brand recognised and they can view the tie up as a branding exercise.
HOW TO GET STARTED WITH AFFINITY MARKETING?
The fundamental thing is to involve a specific group. The groups are called affinity groups. These consist of users who share common ground or a specific theme, such as interest in a specific hobby or product.
Standard affinity marketing practice is to find one or more opinion leaders within the set group. Communication should start with this person, who, ideally, already has a respected position within the group and enjoys a high degree of credibility.
Affinity marketing uses these personal relationships within social groups to alleviate obstacles in the advertising perception and to draw attention to the product advertised.
Why use Affinity Marketing?
Establish client referral policies and procedures
Develop ambassadors within your community to promote your services
Negotiate mutually beneficial marketing relationships
Solicit endorsements from associations with many members
Group marketing effort to individual niches
Cross-selling products to existing members
BENEFITS OF AFFINITY MARKETING
Benefits to the suppliers
Due to partnerships with affinity groups, the suppliers get to know more about their TARGET audience. This advantage is bundled with a decrease in marketing research expenses, as they have the opportunity to carry out research programs together with other group members. Hence, it results in selling their products at a lower price, and consequently acquiring more customers.
The suppliers will spend less on retention rates, or simply because the customers will make purchases via other affinity group members.
Suppliers can target more accurately the marketing communications and deliver a clear marketing message to their consumers.
Benefit to Affinity Groups
Affinity groups can benefit from an increase in their profits through demand for a commission or a fee to each member who wants to join the group.
They can also avoid or decrease merchandising costs and they also have the opportunity to increase their reputation without taking great risks.
Affinity groups develop more opportunities for communication with its members which leads to effective collaboration and creates clear paths for achieving goals together.
Affinity groups have also the advantage of extending or enhancing their brands at a lower risk and lower costs because they will avoid to become the direct supplier of the product or service.
Benefits to the customers
Customers can buy products at extra discounts and they get more confidence in what they buy, due to the partnership between their affinity group and the company.
They also have the possibility to purchase items that have been designed especially for them.
End-consumers also get personal satisfaction as they get the feeling that they have triggered an indirect payment to their cause-related affinity group by value of their purchase.
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