Elements of Incrementality in the Affiliate Channel

Elements of Incrementality in the Affiliate Channel

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  Elements of Incrementality inthe Affiliate Channel Affiliate Summit East 2016
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  • What isan incremental sale • What are the characteristics of an incremental sale • How can affiliates drive incremental sales • How can merchants encourage incremental sales from their affiliates Elements of Incrementality In the Affiliate Channel
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  3 – Been inthe affiliate industry since ~1998 • Started one of the first SEO agencies • Transitioned to being a full time affiliate in 2000 • Natural search, datafeed, PPC, social, video • Moved into full time affiliate management in 2012 – Manage affiliate programs for Fanatics.com, FansEdge.com, NFLShop.com, NBAStore.com, MLBShop.com, Shop.NHL.com, UFCStore.com and about 20 other programs Who Am I?
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  4 • Definition: Asale that occurs or increases as a result of additional influence (courtesy of Karen Garcia from Lab6Media.com) – Would the sale have occurred without the affiliate there? – Would the sale have had the same value? – Would the sale have gone to another channel without the affiliate in the click stream? – Imagine a bucket… What is an incremental sale?
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  5 • The BucketAnalogy – 1st bucket: 6 different hoses from 6 different sources – 2nd bucket: 6 hoses spliced off from each other – 3rd bucket: 6 hoses from one source • Which bucket fills the fastest? What is an Incremental Sale?
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  6 • Incremental isn’tnecessarily black or white • Examples – Customer woke up in the morning with no thoughts of buying anything – Customer knew what he wanted to buy but not sure where – Customer already knew what he was going to buy and where he was going to buy it Levels of Incrementality
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  7 • First/Only touch –Are there other marketing channels or affiliates in the click stream? – Was the affiliate the first touch? – Did the affiliate come later in the click stream? Elements of an incremental sale
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  8 • Is thebehavior introducing the merchant, influencing the purchase, or closing the sale? – Each of these has benefit but some are more incremental than others • Introducer – Most likely to be incremental • Influencer – High incrementaltiy • Closing sale – Questionable incrementality – This is where the work comes in Elements of an incremental sale
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  9 • New Customer –Is this the first time a customer has shopped at the merchant? – Is this a regular customer? Has the customer purchased before? – Is the affiliate “reactivating” the customer? Elements of an incremental sale
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  10 • Time betweenclick and sale – Is the affiliate cookie set very close to the checkout? • Know your site metrics. How long does a normal checkout take? If an affiliate’s sales take significantly less time than that they probably aren’t incremental – Under a couple minutes could be concerning Elements of an incremental sale ~16 minutes between click and checkout ~1 minutes between click and checkout
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  11 • High OrderValue – Is the order above average? – Did the affiliate do anything to encourage a bigger cart value? • Recommending high ticket products • Suggesting multiple items • Pairing items together – Did the affiliate cause the cart value to increase? Elements of an incremental sale
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  12 • Coupon Usage –A coupon doesn’t automatically negate any incrementality – Did the coupon cause or influence a specific action? – Did the coupon help drive the sale or close the sale? – Did the coupon encourage the customer to buy from one merchant vs. another? – Are the coupons just being used by people jumping out of the cart to find a discount? Elements of an incremental sale
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  13 • If youtake the affiliate out of the equation would the customer have purchased anyway? – Other paid marketing channels • Is the affiliate channel more efficient than other channels? – Offline marketing – Other affiliates – Regular customer Elements of an incremental sale
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  14 • Be creative– new merchants, new products, creative connections • Communicate with your affiliate manager • Drive high AOV orders • Drive new customers • Push a merchant to your audience • Jump on high demand opportunities How can Affiliates Drive Incremental Sales
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  15 • Know yourstats/metrics • Know your customer flow • Know your affiliates and talk with them • Utilize advanced commission rules • Reward incremental sales • Pay less for non-incremental sales • Pay what a sale is worth • Be smart with coupons • Test Everything How can merchants encourage incremental sales from their affiliates?
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  Contact Me Email –[email protected] Twitter - @drcool73 Skype – joesousa73 http://whatdoesjoethink.com