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B2B Coupon Affiliates - Cohort Analysis Results | Affiliate Summit West 2013
The document presents key insights from a presentation on B2B coupon affiliates at Affiliate Summit West 2013, emphasizing the misconceptions around coupon usage and its impact on customer spending and brand perception. It illustrates that customers tend to spend more with coupons, are more profitable, and that coupons do not cheapen brand perception but rather enhance customer loyalty. Additionally, it states that minimal overlap exists among different affiliate types, indicating the unique contributions they offer in driving sales.
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B2B Coupon Affiliates - Cohort Analysis Results | Affiliate Summit West 2013
- 1. 1 B2B Coupon Affiliates Affiliate Summit West 2013 January 14, 2013 #19468806, iStockphoto
- 2. 2 Worldwide leaderin digital content Getty Images Leading provider of digital media content worldwide B2B Coupon Affiliates - Affliate Summit West 2013 #83987151, Maarten Wouters/Stone+
- 3. 3 Why arewe here? Understand incremental value #16933741, iStockphoto
- 4. 4 True incrementalgrowth? B2B Coupon Affiliates - Affliate Summit West 2013 81% 73%
- 5. 5 Maybe you’veheard 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 sales B2B Coupon Affiliates - Affliate Summit West 2013
- 6. 6 The Directand Indirect Value that Affiliates Deliver to Advertisers Research reported conducted by Forrester Consulting on behalf of Rakuten LinkShare
- 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 loyalty Source: Forrester Consulting on behalf of Rakuten LinkShare B2B Coupon Affiliates - Affliate Summit West 2013
- 8. MYTH Customers spendless with a coupon 8 #6442730, iStockphoto
- 9. 9 Customers spendmore with a coupon B2B Coupon Affiliates - Affliate Summit West 2013 3.1x spend 2.6x spend
- 10. 10 Deeper discount≠ Higher spending B2B Coupon Affiliates - Affliate Summit West 2013
- 11. MYTH Coupon customersare less profitable 11 #3637662, iStockphoto
- 12. 12 Coupons deliverimmediate returns B2B Coupon Affiliates - Affliate Summit West 2013 3.1x ROI
- 13. Year Time Value Cohort Analysis 13 # 7465953, iStockphoto
- 14. 14 What isa 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) B2B Coupon Affiliates - Affliate Summit West 2013 #200516675-001, James Lauritz / Digital Vision
- 15. 15 Average Revenueper User (ARPU) Average Revenue per User B2B Coupon Affiliates - Affliate Summit West 2013 Total Revenue over X period Total Cohort Population =
- 16. 16 Customer profitabilitygrows over time B2B Coupon Affiliates - Affliate Summit West 2013 1.5x lift 1.8x profitable 2.0x lift
- 17. 17 Retention– longtail of loyal customers B2B Coupon Affiliates - Affliate Summit West 2013 long tail
- 18. 18 Order Value– customers increase spend B2B Coupon Affiliates - Affliate Summit West 2013 1.12x lift
- 19. 19 Frequency –customers spend more often B2B Coupon Affiliates - Affliate Summit West 2013 1.05x lift
- 20. 20 Customer profitabilitygrows over time B2B Coupon Affiliates - Affliate Summit West 2013 1.5x lift 1.8x profitable 2.0x lift
- 21. 21 MYTH Couponscheapen the brand perception #6592931, iStockphoto
- 22. 22 Customer ValueTiers Gold • Agency • In-house Creative Enterprise • Media/Publishing Silver • Business User • Freelance Graphic Designer • In-house Creative SMB • In-house non- Creative Bronze • Blogger • Contributor • Personal Use • Sole Proprietor • Student B2B Coupon Affiliates - Affliate Summit West 2013
- 23. 23 Largest contributionfrom smallest population B2B Coupon Affiliates - Affliate Summit West 2013
- 24. 24 Gold customersare most valuable B2B Coupon Affiliates - Affliate Summit West 2013 1.5x lift 1.4x lift 1.3x lift
- 25. 25 #174759, iStockphoto MYTH Customers would buy anyways, without a coupon
- 26. 26 Coupon usageon the rise 0% 17% 20% B2B Coupon Affiliates - Affliate Summit West 2013
- 27. 27 Google “istockpromo code” B2B Coupon Affiliates - Affliate Summit West 2013
- 28. 28 Why leaveit to chance? B2B Coupon Affiliates - Affliate Summit West 2013
- 29. 29 MYTH “LastClick” Coupon Affiliates steal sales #739213, iStockphoto
- 30. 30 Short salescycle to make a purchase B2B Coupon Affiliates - Affliate Summit West 2013 Average = 2.04 days
- 31. 31 Conversion ratesby affiliate type B2B Coupon Affiliates - Affliate Summit West 2013 Average 2.1%
- 32. 32 Minimal clicksand overlap amongst affiliates B2B Coupon Affiliates - Affliate Summit West 2013 Less than 6% overlap
- 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 coupon Coupons part of everyday shopping Coupons retain loyal customers “Last click” coupon affiliates steal sales While each affiliate type has a role to play, minimal overlap between affiliates B2B Coupon Affiliates - Affliate Summit West 2013
- 34. Questions? blair.dejong@gettyimages.com www.gettyimagesaffiliates.com 34 #15376953, iStockphoto