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Affiliate Marketing Theatre; Revolutionise your affiliate programme using in-depth analytics

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Affiliate Marketing Theatre; Revolutionise your affiliate programme using in-depth analytics

  1. 1. Analytics and InsightRevolutionize your Affiliate program Teresa Lawrence Senior Consultant
  2. 2. Who are Stream:20?What we do SpecialismsStream:20 is a digital PPC Affiliatesmarketing consultancy, est.2005. Display SEOStream:20 provide the in- Social Media Emailhouse digital marketing Channelcapabilities and momentum Conversion Managementbusinesses need to drive keyinitiatives forward. MobileFocus: hitting client KPIs
  3. 3. We’ve worked with…
  4. 4. Stream:20 do two things in affiliatesWork on the front line – managing programs Sit with generals - working through strategy Plan Analyse Action
  5. 5. Data withoutanalytics is justinformation overload
  6. 6. Two Building blocks1. KPIs  Are you using the correct metrics?  Three rarely used KPIs2. Reporting  Simple visual representation
  7. 7. What really ends up happening on affiliate programs?
  8. 8. Lifecycle of a Affiliate Partnership Driving Momentum 1 2 3 4 Affiliate Growth Strategy becomes key Affiliate active sales driverAffiliate Affiliate Traffic beingsign up engaged driven Affiliate drives low level of sales Lapsed Partners  Recruit affiliates Traditional metrics  Monitor performance top level  Visits, sales, CPA  Focus on top performers  Group top affiliates  Group affiliates by type / performance  All top line
  9. 9. Lifecycle of a Affiliate Partnership Driving Momentum 1 2 3 4 5 Affiliate Growth Strategy becomes key Policing Affiliate active sales driverAffiliate Affiliate Traffic beingsign up engaged driven Communicate Affiliate drives low level of sales Optimise Lapsed Partners
  10. 10. Most of thefocus is on Top Tip of theTop affiliates icebergperformers Rest of theWhat about basethe longtail?? What we see is often only a fractional part of what it really is
  11. 11. Affiliates – Introducing New KPIs Recruitment: • Number of new sales driving affiliates Retention: Recruitment Retention • Number of sales driving affiliates lost Activation: • Percentage of registered affiliates that drive sales Activation Growth Growth: • Number of affiliates driving on average over 5 sales a month • Percentage of affiliates driving more sales in 2012 than 2011Ensuring underlying metrics are hit maintains the program strength whilstensures both current and long term sales targets are met. 13
  12. 12. Affiliate KPIs - Detail DATA SCENARIOS HOW YOU CAN ACT • Objective: grow active affiliates • Actions: incentives/ eCRM program# of active affiliates (as reported by networks)steady over the year • Objective: maximise sales • Actions: ongoing communication and optimisationPositive growth in number of affiliates drivingsales eliminates channel risk
  13. 13. Affiliate KPIs - Detail DATA SCENARIOS HOW YOU CAN ACT • Objective: grow lower tier, reactivate • Action: nurture program, activation incentivesLittle uplift but constant influx of new affiliatesthroughout the year maintains momentum • Objective: grow mid tier • Action: optimisation, target incentive strategyNumber of large volume sales drivingaffiliates follows overall sales trend
  14. 14. eCRM for AffiliatesAn effective email/eCRM program can be expected to efficiently: 1. Understand and extend the lifetime value of an affiliate 2. Increase engagement by broadening the partner’s business and product experience 3. Maximise the value of an affiliate 4. Mitigate churn and deliver value on a rolling basis.
  15. 15. eCRM for Affiliates Implement an effective email/eCRM program Identify Segments Welcome/New Active Pending Lapsed Lapsed Reg/ Not active Objective: Objective: Objective: Objective: Objective: Educate Maintain engage Identify partners Create a winback Trigger campaigns for Reduce early churn Upsell/Xsell showing a propensity strategy partners with no X-sell Reward success to lapse and encourage to re-engage lapsed product uptake after Return users to site re-engagement. customers. registration. Identify Value VIP High Value Mid Value Low Value No Value Objective: Create SCV of customers for RFM modelling to create loyalty scheme and messaging.Identify Preferences Objective: Capture explicit and implicit partner business preferences to relevant emails that cut through the inbox clutter and generate incremental sales Email campaign management best practice: - Reporting/Tracking - Deliverability management - Creative best practice/testing - List management
  16. 16. Categorizing affiliates by valueSCENARIO 1: 80% COMING FROM TOP 5 Long tail 20% Top Affiliates 80%SCENARIO 2: GETTING TO 60% COMING FROM TOP 5 Long tail 40% Top Affiliates 60%
  17. 17. Categorizing affiliates by type What verticals you target with your strategy makes a difference You can layer in new affiliate verticals to drive incremental sales As new verticals come on, there is some cannibalisation, but over all you will get incremental revenue
  18. 18. Un-tap the power of data1. Data is your friend - identify what matters2. Analyse data to show you:  where you are performing well  key revenue drivers  where specific improvements are needed  the modelled impact of those improvements3. Uncover the hidden insights in your data  Engage in strategic discussions to help you take effective and meaningful action
  19. 19. THANK YOUTeresa LawrenceSenior ConsultantStream:20

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