This document summarizes a presentation about understanding affiliates' needs regarding loyalty and incentive schemes. It discusses the types of incentive affiliates including cashback sites, loyalty sites, and store cards. It outlines the benefits these sites provide including large customer databases, customer loyalty, and increased sales metrics. It also notes things to consider such as consumers primarily shopping through loyalty sites for incentives and brands needing to consistently provide incentives to drive sales.

1. Webgains merchant seminar
Understanding affiliates' needs
Loyalty schemes
Hero Grigoraki – Client Services Director, Webgains Ltd

2. Understanding affiliates‘ needs: Loyalty & Incentive schemes2
Types of incentive affiliates
›Cashback sites
›Loyalty sites
›Store cards
›Virtual currency
›Company employee schemes (intranets)
›Charity schemes
›All powered by the commission merchants pay passed back to the consumer

3. 3
What are the benefits?
›Huge customer databases
›Very popular sites, still experiencing great growth
›Customer loyalty to affiliate site, recommendations are picked up
›Internet-savvy consumers
›Loyalty customers more prone to spread the word
›High repeat purchase rate
›Increased AOV and Conversion Rate
›Fast response rate
›Taking full advantage of social media
›White label & bus dev deals give you wider exposure
›Online and offline convergence
Understanding affiliates‘ needs: Loyalty & Incentive schemes

4. 4
Keep in mind
›Consumer tends to always shop through the loyalty site
›No brand affinity, it’s the incentive that drives them
›Brand perception can be harmed if the incentive isn’t honoured
›Loopholes WILL be exploited!
›Vouchers & store offers now listed
Understanding affiliates‘ needs: Loyalty & Incentive schemes

5. 5
How to work with incentive sites
›Understand the consumer – demographics, past behaviour, interests, response rates
›Set targets & KPIs: new V existing, cashback & voucher combination, commission rates, untracked
transactions
›Incentives need to be strong to stand out from competition and give you increased exposure
›Decide early on placements & tactical campaigns
›Communication with Loyalty affiliates is key
›Test campaigns to see the benefits – tweak the offers to see response rate
›Monitor your brand pages and offer listings – ensure your offers are accurate and up to date
Understanding affiliates‘ needs: Loyalty & Incentive schemes

6. 6
What to be aware of
›Local tracking across multiple channels (channel deduplication): untracked incentivised transactions will be
followed up
›Consumers will constantly need to be incentivised
›Vouchers in combination with cashback will erode margins
›Last minute placements might not be as effective
›Measure incrementality
›Value attribution models become complicated for incentive sites
›Loopholes – don’t leave things to chance
›Lead gen offers
›Browser toolbars becoming more mainstream – IAB has issued guidelines for this affiliate activity
›Virtual currency does not suit Retail
›Consumer terms need to be clearly communicated
Understanding affiliates‘ needs: Loyalty & Incentive schemes

7. 7
Role of the affiliate network
›Advantage in the transparency, control and moderation
›In line with all your other affiliates
›Dedupe against all affiliate activity
›Value-attribution models
›Advice on who to work with and what advantages they offer
›We will keep you updated on all new features and placement opportunities
›Minimise untracked transactions – WG has the highest track record in UK
Understanding affiliates‘ needs: Loyalty & Incentive schemes

8. Thank you!
Hero Grigoraki
Client Services Director
+44 (0)207 269 1238
hero@webgains.com
@WebgainsUK