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B2B CouponAffiliatesAffiliate Summit West 2013January 14, 2013                             1#19468806, iStockphoto
Worldwide leader in digital contentGetty ImagesLeading provider of digitalmedia content worldwide B2B Coupon Affiliates - ...
Why are we here?                 Understand incremental value                                                3#16933741, i...
True incremental growth?                                                    81%   73%B2B Coupon Affiliates - Affliate Summ...
Maybe you’ve heard one of these before… • Customers spend less with a coupon • Coupon customers are less profitable • Coup...
The Direct and Indirect Value that Affiliates Deliver to                     Advertisers       Research reported conducted...
Key Findings • Generates incremental new customer acquisition • Online buyers are deal-driven and more likely to buy a pro...
MYTHCustomers spend less with               a coupon                               8                 #6442730, iStockphoto
Customers spend more with a coupon                                                                 2.6x spend             ...
Deeper discount ≠ Higher spendingB2B Coupon Affiliates - Affliate Summit West 2013   10
MYTHCoupon customers are       less profitable                            11              #3637662, iStockphoto
Coupons deliver immediate returns                                                    3.1x ROIB2B Coupon Affiliates - Affli...
Year Time Value    Cohort Analysis                          13           # 7465953, iStockphoto
What is a Cohort? • A population of customers   sharing common attributes           – 1st purchase with a coupon          ...
Average Revenue per User (ARPU)                                                        Total Revenue                      ...
Customer profitability grows over time                                                    1.5x lift                       ...
Retention– long tail of loyal customers                                                    long tailB2B Coupon Affiliates ...
Order Value – customers increase spend                                                    1.12x liftB2B Coupon Affiliates ...
Frequency – customers spend more often                                                    1.05x liftB2B Coupon Affiliates ...
Customer profitability grows over time                                                    1.5x lift                       ...
MYTHCoupons cheapen thebrand perception                        21#6592931, iStockphoto
Customer Value Tiers                    Gold                                  Silver              Bronze  • Agency        ...
Largest contribution from smallest populationB2B Coupon Affiliates - Affliate Summit West 2013   23
Gold customers are most valuable                                                    1.5x lift                             ...
MYTH                       Customers would buy                         anyways, without a                                 ...
Coupon usage on the rise                            0%                      17%   20%B2B Coupon Affiliates - Affliate Summ...
Google “istock promo code”B2B Coupon Affiliates - Affliate Summit West 2013   27
Why leave it to chance?B2B Coupon Affiliates - Affliate Summit West 2013   28
MYTH                       “Last Click” Coupon Affiliates steal sales                                                     ...
Short sales cycle to make a purchase                                                    Average = 2.04 daysB2B Coupon Affi...
Conversion rates by affiliate type                                                    Average                             ...
Minimal clicks and overlap amongst affiliates                                                    Less than                ...
Key Takeaways Myth                                               Truth Customers spend less with a coupon                 ...
Questions?blair.dejong@gettyimages.comwww.gettyimagesaffiliates.com                                34                 #153...
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B2B Affiliate Coupons – Cohort Analysis Results

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I aim to dispel the myths that coupons are a brand damaging tactic and that they add real value to our business with increased AOV’s, conversion and Year time value vs. the total online business.

Experience level: Intermediate
Target audience: Affiliate/Publisher
Niche/vertical: B2B

Blair de Jong, Affiliate Marketing Manager, Getty Images (Twitter @blairdejong)

Published in: Business
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  • Set the stage for why the problem“Astronomical growth”Show Coupon vs No Coupon
  • Show coupon vs no coupon plus affiliate commission side by side
  • Transcript of "B2B Affiliate Coupons – Cohort Analysis Results"

    1. 1. B2B CouponAffiliatesAffiliate Summit West 2013January 14, 2013 1#19468806, iStockphoto
    2. 2. Worldwide leader in digital contentGetty ImagesLeading provider of digitalmedia content worldwide B2B Coupon Affiliates - Affliate Summit West 2013 2 #83987151, Maarten Wouters/Stone+
    3. 3. Why are we here? Understand incremental value 3#16933741, iStockphoto
    4. 4. True incremental growth? 81% 73%B2B Coupon Affiliates - Affliate Summit West 2013 4
    5. 5. Maybe you’ve heard one of these before… • Customers spend less with a coupon • Coupon customers are less profitable • Coupons cheapen the brand perception • Customers would buy anyways without a coupon • “Last click” coupon affiliates steal salesB2B Coupon Affiliates - Affliate Summit West 2013 5
    6. 6. The Direct and Indirect Value that Affiliates Deliver to Advertisers Research reported conducted by Forrester Consulting on behalf of Rakuten LinkShare 6
    7. 7. Key Findings • Generates incremental new customer acquisition • Online buyers are deal-driven and more likely to buy a product they find merchandised or advertised on multiple websites • Attracts consumers who spend more than the average online shopper and are profitable for advertisers. • Affiliate marketing helps trigger brand reconsideration, often closes the sale • Promotions offered in the affiliate channel have a positive impact on an advertiser’s brand reputation and loyaltySource: Forrester Consulting on behalf of Rakuten LinkShareB2B Coupon Affiliates - Affliate Summit West 2013 7
    8. 8. MYTHCustomers spend less with a coupon 8 #6442730, iStockphoto
    9. 9. Customers spend more with a coupon 2.6x spend 3.1x spendB2B Coupon Affiliates - Affliate Summit West 2013 9
    10. 10. Deeper discount ≠ Higher spendingB2B Coupon Affiliates - Affliate Summit West 2013 10
    11. 11. MYTHCoupon customers are less profitable 11 #3637662, iStockphoto
    12. 12. Coupons deliver immediate returns 3.1x ROIB2B Coupon Affiliates - Affliate Summit West 2013 12
    13. 13. Year Time Value Cohort Analysis 13 # 7465953, iStockphoto
    14. 14. What is a Cohort? • A population of customers sharing common attributes – 1st purchase with a coupon – 1st purchase without a coupon • Follow activity across a period of time to understand customer behavior – Q1 2011 to Q3 2012 – Normalize over 12 months to measure year-time value (YTV) #200516675-001, James Lauritz / Digital VisionB2B Coupon Affiliates - Affliate Summit West 2013 14
    15. 15. Average Revenue per User (ARPU) Total Revenue over X period Average Revenue = per User Total Cohort PopulationB2B Coupon Affiliates - Affliate Summit West 2013 15
    16. 16. Customer profitability grows over time 1.5x lift 1.8x profitable 2.0x liftB2B Coupon Affiliates - Affliate Summit West 2013 16
    17. 17. Retention– long tail of loyal customers long tailB2B Coupon Affiliates - Affliate Summit West 2013 17
    18. 18. Order Value – customers increase spend 1.12x liftB2B Coupon Affiliates - Affliate Summit West 2013 18
    19. 19. Frequency – customers spend more often 1.05x liftB2B Coupon Affiliates - Affliate Summit West 2013 19
    20. 20. Customer profitability grows over time 1.5x lift 1.8x profitable 2.0x liftB2B Coupon Affiliates - Affliate Summit West 2013 20
    21. 21. MYTHCoupons cheapen thebrand perception 21#6592931, iStockphoto
    22. 22. Customer Value Tiers Gold Silver Bronze • Agency • Business User • Blogger • In-house • Freelance • Contributor Creative Graphic • Personal Use Enterprise Designer • Sole Proprietor • Media/Publishing • In-house • Student Creative SMB • In-house non- CreativeB2B Coupon Affiliates - Affliate Summit West 2013 22
    23. 23. Largest contribution from smallest populationB2B Coupon Affiliates - Affliate Summit West 2013 23
    24. 24. Gold customers are most valuable 1.5x lift 1.4x lift 1.3x liftB2B Coupon Affiliates - Affliate Summit West 2013 24
    25. 25. MYTH Customers would buy anyways, without a coupon 25#174759, iStockphoto
    26. 26. Coupon usage on the rise 0% 17% 20%B2B Coupon Affiliates - Affliate Summit West 2013 26
    27. 27. Google “istock promo code”B2B Coupon Affiliates - Affliate Summit West 2013 27
    28. 28. Why leave it to chance?B2B Coupon Affiliates - Affliate Summit West 2013 28
    29. 29. MYTH “Last Click” Coupon Affiliates steal sales 29#739213, iStockphoto
    30. 30. Short sales cycle to make a purchase Average = 2.04 daysB2B Coupon Affiliates - Affliate Summit West 2013 30
    31. 31. Conversion rates by affiliate type Average 2.1%B2B Coupon Affiliates - Affliate Summit West 2013 31
    32. 32. Minimal clicks and overlap amongst affiliates Less than 6% overlapB2B Coupon Affiliates - Affliate Summit West 2013 32
    33. 33. Key Takeaways Myth Truth Customers spend less with a coupon Customers spend 2-3x more with a coupon Deeper discount ≠ higher spending Coupon customers are less profitable Coupon customers are more profitable both in the short and long term Coupons cheapen the brand perception Most valuable and loyal customers use coupons Customers would buy anyways without a Coupons part of everyday shopping coupon Coupons retain loyal customers “Last click” coupon affiliates steal sales While each affiliate type has a role to play, minimal overlap between affiliatesB2B Coupon Affiliates - Affliate Summit West 2013 33
    34. 34. Questions?blair.dejong@gettyimages.comwww.gettyimagesaffiliates.com 34 #15376953, iStockphoto
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