Analytics and InsightRevolutionize your Affiliate program

Teresa LawrenceSenior Consultant

Who are Stream:20?

Specialisms

Affiliates

SEO

Channel Management

PPC

Display

Email

Conversion

Social Media

What we do

Stream:20 is a digital marketing consultancy, est. 2005.

Stream:20 provide the in-house digital marketing capabilities and momentum businesses need to drive key initiatives forward. Mobile

Focus: hitting client KPIs

We’ve worked with…

Stream:20 do two things in affiliates

Work on the front line – managing programs Sit with generals - working through strategy

Plan Analyse Action

Data without analytics is just information overload

Two Building blocks

1. KPIs Are you using the correct metrics? Three rarely used KPIs

2. Reporting Simple visual representation

The KPIs they use have to count –

they have to give insight

F1 Drivers can only use a few dials to make split-second decisions

What really ends up happening on affiliate programs?

Lifecycle of a Affiliate Partnership

Affiliate engaged

Affiliate active Traffic being driven

Lapsed Partners

Driving Momentum

Affiliate becomes key sales

driver

Affiliate drives low

level of sales

1 2 4

Gro

wth

Str

ate

gy

Affiliate sign up

Recruit affiliates Monitor performance top level Focus on top performers Group affiliates by type / performance

Traditional metrics Visits, sales, CPA Group top affiliates All top line

3

Lifecycle of a Affiliate Partnership

Affiliate engaged

Affiliate active Traffic being driven

Lapsed Partners

Driving Momentum

Affiliate becomes key sales

driver

Affiliate drives low

level of sales

1 2 3 4

Policing

Communicate

Optimise

5

Gro

wth

Str

ate

gy

Affiliate sign up

Tip of the icebergTop affiliates

Rest of the base

What we see is often only a fractional part of what it really is

Most of the focus is on Top performers

What about the long tail??

Affiliates – Introducing New KPIs

Recruitment:• Number of new sales driving affiliates

Retention:• Number of sales driving affiliates lost

Activation:• Percentage of registered affiliates that

drive sales

Growth:• Number of affiliates driving on average

over 5 sales a month• Percentage of affiliates driving more

sales in 2012 than 2011

13

Recruitment

Activation

Retention

Growth

New Affiliates Existing Affiliates

Core

KPI

Impa

ct K

PI

Ensuring underlying metrics are hit maintains the program strength whilst ensures both current and long term sales targets are met.

• Objective: grow active affiliates

• Actions: incentives/ eCRM program

Positive growth in number of affiliates driving sales eliminates channel risk

# of active affiliates (as reported by networks) steady over the year

DATA SCENARIOS HOW YOU CAN ACT

• Objective: maximise sales

• Actions: ongoing communication and optimisation

Affiliate KPIs - Detail

Affiliate KPIs - Detail

Number of large volume sales driving affiliates follows overall sales trend

• Objective: grow mid tier• Action: optimisation,

target incentive strategy

DATA SCENARIOS HOW YOU CAN ACT

Little uplift but constant influx of new affiliates throughout the year maintains momentum

• Objective: grow lower tier, reactivate

• Action: nurture program, activation incentives

eCRM for Affiliates

An 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.

eCRM for Affiliates

Identify Segments Welcome/New Active Pending Lapsed Lapsed Reg/ Not active

Identify Value

Objective:Educate Reduce early churnX-sellReturn users to site

Identify Preferences Objective: Capture explicit and implicit partner business preferences to relevant emails that cut through the inbox clutter and generate incremental sales

VIP High Value Mid Value Low Value No Value

Objective: Create SCV of customers for RFM modelling to create loyalty scheme and messaging .

Objective:Maintain engageUpsell/XsellReward success

Objective:Identify partnersshowing a propensity to lapse and encourage re-engagement.

Objective:Create a winback strategyto re-engage lapsed customers.

Objective:Trigger campaigns for partners with no product uptake after registration.

Email campaign management best practice:- Reporting/Tracking- Deliverability management- Creative best practice/testing- List management

Implement an effective email/eCRM program

SCENARIO 2: GETTING TO 60% COMING FROM TOP 5

SCENARIO 1: 80% COMING FROM TOP 5

Categorizing affiliates by value

Top Affiliates60%

Long tail40%

Top Affil-iates80%

Long tail20%

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

Un-tap the power of data

1. Data is your friend - identify what matters

2. Analyse data to show you:where you are performing wellkey revenue drivers where specific improvements are

needed the modelled impact of those

improvements

3. Uncover the hidden insights in your data Engage in strategic discussions to help

you take effective and meaningful action

THANK YOU

Teresa LawrenceSenior ConsultantStream:20