Transform Marketing Strategy with Moving to Outcomes by Robert Glazer & Matthew Wool

Why Partnerships Are the Future of Marketing. Dive into the groundbreaking world of partnership marketing with “Moving to Outcomes,” a book that revolutionizes the traditional marketing approach. This insightful read offers a lucid and strategic roadmap to leveraging partnerships for sustainable success. It’s a must-read for marketers looking to stay ahead in a rapidly evolving digital landscape.

Ready to revolutionize your marketing strategy and drive real results? Keep reading to discover how “Moving to Outcomes” can transform your approach to marketing and elevate your business to new heights.

Genres

Marketing, Sales, Management, Leadership, Corporate Culture, Career Success. Business Strategy, Entrepreneurship, Digital Marketing, E-commerce, Branding, Innovation

“Moving to Outcomes” by Robert Glazer & Matthew Wool is a compelling exploration of partnership marketing, advocating for a shift from traditional advertising to outcome-based collaborations. The book argues that just as investors diversify their portfolios to mitigate market unpredictability, marketers must also diversify their strategies beyond the digital giants of today. It emphasizes the importance of investing in innovative marketing channels that focus on mutual cooperation and shared goals, ensuring payment only upon successful outcomes.

Review

“Moving to Outcomes” is an essential read for modern marketers. Glazer and Wool provide a persuasive argument for the future of marketing, highlighting the significance of relationships and transparent partnerships.

The book is praised for its clear frameworks and actionable advice, making it a valuable resource for businesses aiming to build sustainable revenue through scalable marketing partnerships. Its emphasis on the evolution of marketing and the potential of outcome-based partnerships offers a fresh perspective that is both insightful and practical for today’s marketing professionals.

Introduction: Insights into innovative marketing strategies

Moving to Outcomes (2021) explores the evolution of partnership marketing from its traditional roots to its current automated and scalable form, a transformation driven by technological advancements and shifts in supply and demand. Packed with insights into leveraging this model to its fullest, it enables companies to navigate and thrive in the digital marketplace.

Marketers are always on the lookout for the next big thing – after all, things move fast in the world of digital marketing. The real challenge isn’t just keeping pace, though – it’s staying ahead, accurately predicting trends, and investing wisely in a future that’s always in motion.

Imagine, for a moment, you’re a financial investor. The golden rule you’ve always followed? Diversify your portfolio. This principle isn’t just limited to stocks and bonds; it’s equally applicable and vital in the marketing arena.

Just as an investor seeks to diversify their portfolio to hedge against the unpredictability of the market, marketers must step beyond the comfort zones of today’s digital giants. That, in a nutshell, is the argument of Robert Glazer’s Moving to Outcomes. Investing in known digital behemoths that dominate the advertising world is akin to stashing your investments in mature, stable stocks. Comfortable? Sure. But it’s unlikely to yield above-average returns.

So what’s the alternative? Simply put, you have to wade into the turbulent waters of innovation. And that’s exactly what we’ll be talking about in this summary.

Partnership marketing focuses on outcomes, not processes.

Marketers of all stripes share a dream: getting the most bang for your buck, especially when it comes to advertising. So how do you do it? What principles can you apply?

Well, here’s a question for you: Would you rather spend a chunk of your budget on an ad that might not bring in much business, or would you prefer paying only when you actually make a sale? It’s an easy choice, right? That’s the beauty of partnership marketing. What that means in practice is mutual cooperation between parties for shared goals and mutual benefits.

Take a simple offline example to see how this works in practice. Imagine a boat rental shop offers a local resort concierge a $10 fee for every referral. The concierge is motivated to send over any guest, regardless of their actual interest in renting a boat. But if the shop instead offers a 10 percent commission on actual bookings, the concierge becomes more selective, referring only highly interested customers. This approach ensures the concierge earns more for successful referrals, the shop receives fewer but higher quality leads, and both parties benefit more from the arrangement.

Partnership marketing stands out because it operates on a simple yet powerful principle: you only pay for success. Unlike traditional advertising, where money is spent upfront without any guarantees of results, partnership marketing allows brands to define what success looks like for them – be it sales, new customers, or leads – and then pay partners based on achieving those outcomes. This alignment of interests between brands and their marketing partners ensures that both parties are working toward the same goal: tangible, beneficial results.

Partnership marketing offers three standout benefits that make it an attractive option for marketers.

First off, it’s inherently profitable. Since companies only compensate their partners based on actual sales or leads, they can easily manage their budget to meet profit margins. Second, it’s scalable. With the help of technology and partnership platforms, brands can efficiently manage numerous partnerships, expanding their reach without a proportional increase in effort or resources. This scalability doesn’t compromise efficiency; the cost-benefit ratio remains constant, whether you’re making $10 or $1,000 in revenue.

Lastly, partnership marketing is sustainable. It fosters long-term relationships between brands and partners, built on fairness and mutual benefit, rather than the fleeting advantages and escalating costs associated with other digital marketing channels.

This model avoids the pitfalls of the digital marketing rat race, where companies often find themselves paying more for diminishing returns, or hopping from one trending platform to another, only to end up investing in channels that lose relevance over time. By focusing on outcomes, partnership marketing ensures that marketing budgets are spent wisely, fostering relationships that deliver consistent value over time. It’s a strategic approach that not only meets the immediate needs of businesses but also supports sustainable growth and profitability in the competitive digital marketplace.

Smaller brands have a distinct advantage over giants like Amazon – the key is to unlock it.

Today, every brand, no matter how big or small, finds itself in a David versus Goliath battle with Amazon. This juggernaut, with its colossal marketing budget and country-sized customer base, sets a high bar for competition. Partnership marketing is your slingshot in this fight, offering your brand a means of navigating the Amazon challenge more effectively.

Partnership marketing allows brands to bypass direct competition with Amazon by cultivating relationships with partners who are incentivized to help them succeed. This approach hinges on creating a win-win scenario where both the brand and its partners thrive by achieving shared objectives. For smaller brands, this strategy opens up a unique advantage: the ability to offer a personal touch and deeper engagement that a behemoth like Amazon, reliant on automation for its massive affiliate program, simply can’t match.

The impersonal nature of Amazon’s vast network, while efficient, lacks the warmth and personal engagement that smaller brands can provide. These brands can attract marketing partners by offering more targeted support, bespoke promotional content, and access to exclusive deals, filling a gap left by Amazon’s one-size-fits-all strategy. This personalized approach not only enhances the partnership experience but also drives better marketing outcomes by aligning closely with partners’ motivations and goals.

The shifting sands of Amazon’s affiliate program, notably during disruptions like the COVID-19 pandemic, underscore the volatility of relying too heavily on a single platform for partnership marketing. Amazon’s adjustments to its commission structures and partner relationships during these times have left many partners seeking more stable and rewarding opportunities elsewhere. This scenario presents a golden opportunity for other brands to step in and establish strong, mutually beneficial partnerships with these disenfranchised affiliates.

Amazon itself is slowly catching on to the benefits of partnership marketing. It’s now rolling out initiatives allowing brands to manage their own partnership programs, signaling a significant evolution. This move could empower brands to exert greater control over how their products are marketed, fostering direct relationships with promoters and tailoring marketing strategies to their needs.

Partnership marketing can slash your company’s upfront costs.

In the digital era, innovative companies like Uber and Airbnb have revolutionized traditional markets without owning the primary assets of their industries – cars for Uber and properties for Airbnb. Instead, they’ve mastered the art of creating scalable marketplaces that connect supply with demand, proving that facilitating connections can be highly profitable. This model hasn’t only transformed transportation and vacation rentals – it also holds significant lessons for the future of marketing, particularly in the realm of partnership marketing.

These businesses have demonstrated the importance of establishing clear rules and standards within their marketplaces, ensuring transparency, growth, and seamless transactions. This approach to running a marketplace is directly applicable to the marketing sector, especially when considering the rise of partnership marketing. The essence of the strategy lies in brands leveraging these marketplace dynamics, so that marketers become the driving force behind sales and customer acquisition, all while adhering to a brand’s rules and standards.

A compelling case study illustrating this point is a collaboration between Valpak, known for its high-value direct mail marketing, and a global food delivery brand seeking to attract small and medium-sized restaurants. The challenge was that these smaller potential partners were often overlooked by the brand’s business development team due to perceived lower yields. Through a strategic partnership marketing campaign, utilizing direct mail with customized messaging, tracking links, and QR codes, the brand successfully engaged a significant number of these restaurants, demonstrating the power of partnership marketing.

What partnership marketing does is allow brands to explore new marketing channels and strategies without the substantial upfront investment typically required for in-house teams or media buys. It acknowledges the reality that the marketing landscape is rapidly evolving, with new, highly specialized channels emerging constantly. Mastery of one channel can quickly become obsolete as the market shifts focus to another, like from Google to Snapchat. In this fast-paced environment, it’s challenging for brands to excel at every opportunity.

Partnership marketing offers a solution by enabling brands to tap into the expertise of specialists who are already proficient in these emerging channels. Many of the most skilled marketers today prefer the flexibility of consulting or running their own firms, servicing a portfolio of clients with their niche expertise. These free agents move swiftly, adapting to changes faster than most brands could internally.

By adopting a marketplace model for marketing, akin to what Uber has achieved in ride-sharing, businesses can construct a network of specialist partners. These partners engage in acquiring potential customers across a diverse range of channels, operating on an outcomes-based model. This approach not only mitigates risk for the brand but also efficiently leverages the dynamism and expertise of external marketing specialists.

Outcome-based influencer marketing works well for smaller brands.

The allure of celebrity endorsements has evolved into the digital age’s influencer marketing phenomenon. With the rise of social media, brands have eagerly turned to influencers, offering them products and fees in exchange for promotions. This trend has given birth to a plethora of influencer networks designed to connect these digital personalities with brands. But as the sector has matured, the initial rush of investment has calmed, leading to a consolidation with fewer, but more robust, networks remaining.

The landscape of influencer marketing is undergoing significant shifts. Brands are increasingly seeking tangible outcomes from their investments in this channel. There’s a growing preference for authenticity over follower counts, with companies favoring influencers who have smaller but more engaged and loyal audiences. These “micro-influencers”, often specialists in niches like beauty or gaming, offer brands a more direct and genuine connection to potential customers. The shift toward these influencers underscores a broader movement within marketing toward authenticity and relevance.

More and more brands are integrating their influencer marketing efforts into their broader partnership marketing strategies, recognizing the synergies between the two. This integration is facilitated by technology that allows for the tracking, measuring, and rewarding of influencers based on the performance of their endorsements, aligning with the outcome-focused approach of partnership marketing.

As influencer marketing continues to mature, the industry is moving toward models that emphasize accountability and measurable results. Influencers themselves are adapting, increasingly open to arrangements that reward them based on the actual sales or leads they generate. This shift represents an optimal moment for brands to further integrate influencer marketing into their partnership marketing frameworks, benefiting from the efficiency and efficacy that technology-driven platforms offer.

Ultimately, the key to success in this evolved marketing landscape is in carefully selecting the right partners and aligning them with strategies and campaigns that leverage their strengths and reach. By doing so, brands can achieve a more authentic connection with their target audiences, driving better results and maximizing the return on their marketing investments.

Partnership marketing works – but you still need to persuade your company’s leadership.

By now we’ve learned about all the benefits that partnership marketing can offer. But how do you integrate it into your company’s marketing strategy?

If you’re spearheading a partnership marketing program, demonstrating its value is key to securing the necessary budget and resources for expansion. This task is more straightforward if your organization has already dabbled in affiliate marketing or similar initiatives, but it can still be challenging if your leadership hasn’t used this model in its current form.

The first step in this advocacy journey is to align with your company leadership’s goals. Understand that while increasing revenue is a universal objective, your marketing leaders may prioritize certain metrics, such as ROI, lead generation, customer acquisition volume, or maximizing return on ad spend. Grasping these specific targets is crucial for illustrating how partnership marketing can contribute to these objectives.

Next, focus on demonstrating the model’s effectiveness. Highlight that partnership marketing requires payment only for actual outcomes, such as sales or leads generated by your partners. This pay-for-performance aspect ensures that any increase in marketing spend directly correlates with tangible results, like higher revenue or more leads. Stressing this point can reassure leadership that investment in partnership marketing is tied to real business growth.

You can further solidify your argument by delving into the specifics of how partnership marketing works, leveraging data on its growth as a channel and referencing relevant case studies. Discussing the types of potential partners and how they can synergize with your brand adds depth to your proposal. It’s also beneficial to do some preliminary research on partnership automation technology, recommending platforms that align with your company’s needs. You can also investigate whether industry leaders or competitors are already utilizing partnership marketing themselves.

Addressing the need for cross-departmental buy-in upfront will demonstrate your comprehensive understanding of what it takes to implement a successful partnership marketing program. Outlining the internal resources required from tech, finance, sales, and other departments – and how you plan to secure these resources – shows foresight and preparedness.

And of course, make sure you have a clear vision of the next steps. Ensure you and your manager agree on your responsibilities and the support you’ll need from them in advocating for the program across the organization.

The overarching message here is simple: While some leaders may initially be skeptical of partnership marketing, focusing on its proven profitability, scalability, and transparency is the best strategy. Rather than overselling, rely on solid facts, set realistic expectations, and continuously provide data to demonstrate the program’s effectiveness. By adopting this approach, you can build a compelling case for partnership marketing, highlighting its potential to significantly impact your company’s marketing strategy and bottom line.

Conclusion

Brands are increasingly harnessing partnership marketing to thrive in a fast-moving marketing landscape. This strategy pivots on creating scalable marketplaces of partners and influencers who drive sales and customer acquisition, paying only for tangible outcomes. By prioritizing relationships with micro-influencers and leveraging automation for efficiency, brands can offer personalized experiences that big players like Amazon can’t, fostering genuine connections with their audience. This model, which embodies flexibility, accountability, and scalability, represents a future where brands leverage collaborative expertise for growth.

About the author

Robert Glazer is the founder of the Board of Acceleration Partners, a global partner marketing agency. Under Glazer’s guidance, the company has been recognized with Glassdoor’s Employees’ Choice Awards and Ad Age’s Best Place to Work. Glazer is also the bestselling author of six books, including Elevate and How To Thrive In The Virtual Workplace. His podcast, also called Elevate, has been downloaded over 1,000,000 times.