build a better program: segmentation, attribution & motivation
DESCRIPTION
How to properly segment your affiliates, build appropriate attribution models, and motivate them to provide the value that you want.TRANSCRIPT
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Segmentation, Attribution, and Motivation
Brian LittletonFounder/CEO ShareASale
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
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Attribution is a popular word!
Overheard at every Industry Conference, every Board Room and every Vendor pitch.
Let’s start by looking at the main problem identified.
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
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The “Last Minute” Click
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
AVG TIMETO COMPLETE ORDER10 MinutesVS.$$
Click to Commission3 Minutes
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SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
The Turtle is in position to earn a commission as last click and is trumped
by the Parrott at the last second.
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How to correct?
Major lines of thinking include
• Remove Affiliates• First Click
• Pay Per View Models
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
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Remove Affiliates
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Masks the problemLeaves revenue on the table
“Head in Sand” technique
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First Click RewardOften utilized by Merchants.
On the surface, it looks like a good way to reward the first person to send
traffic.
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
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SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
First one in, keeps everyone else out.Encourages spam and click stuffing behaviour.Can result in simply random sale ownership.
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What about View Tracking•Touted as a way to reward content sites who are
othewise difficult to engage.•Activates on any view of the site as opposed to
the user taking any action.
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SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
• Essentially is encouraged cookie-stuffing•Merchant has no real idea why / how a consumer
came through this relationship.• Random sale ownership.
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So what’s a better idea?•Let’s create a solution that is fair •Go back to history to remember the benefits…
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
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Early Affiliate Marketing•One size fits all•Scale achieved by giving all people the exact same product thereby limiting the workload of an AM.•Not the reality of today.
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
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Segmentation•Critical in developing a complex
commission structure.•Track trends and manages
positives/negatives
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
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Attribution•Use behaviour and rules to determine
commission
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
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Examples:The “Last Minute” Click
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
AVG TIMETO COMPLETE ORDER10 MinutesVS.$$
Click to Commission3 Minutes
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SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
The Turtle is in position to earn a commission as last click and is trumped
by the Parrott at the last second.
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Scenario Building
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Coupons v. Content
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Scenario Building
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Coupons v. Coupons
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Things to look out for
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Contiguous clicks
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Build the Rules“LeapFrog”
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
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Build the Rules“Big Sale”
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Encourage an Affiliate to play to their individual strengths.
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Scenario Building
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Not all about the Coupons!
•2% Bonus from a certain recruitment source•Add $50 for a sale over $500•Double commission for a new customer•Generate full commission for an affiliate tagged as “Coupon” utilizing a specific creative
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You’ve created a Modern Affiliate Program
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
•Uses real data to determine complex commission structure•No “blanket” decisions such as paying all coupon affiliates 2% or removing from the program.•Incentives affiliates to encourage the behaviour that you want.•Scales using technology and rules – not just because one size fits all.
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Questions and Discussion
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE