B2B Affiliate Coupons – Cohort Analysis Results

1

B2B Coupon Affiliates

Affiliate Summit West 2013January 14, 2013

#19468806, iStockphoto

2B2B Coupon Affiliates - Affliate Summit West 2013

Worldwide leader in digital content

Getty Images

Leading provider of digital media content worldwide

#83987151, Maarten Wouters/Stone+

3

Why are we here?

Understand incremental value#16933741, iStockphoto


True incremental growth?

81% 73%


Maybe you’ve heard 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

6

The Direct and Indirect Value that Affiliates Deliver to Advertisers

Research reported conducted by Forrester Consulting on behalf of Rakuten LinkShare


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

8#6442730, iStockphoto

MYTHCustomers spend less

with a coupon


Customers spend more with a coupon

3.1x spend

2.6x spend


Deeper discount ≠ Higher spending


MYTHCoupon customers are

less profitable


Coupons deliver immediate returns

3.1x ROI

13

Year Time ValueCohort Analysis

# 7465953, iStockphoto

14

What is a 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


Average Revenue per User (ARPU)

Average Revenueper User

Total Revenue over X period

Total Cohort Population

=


Customer profitability grows over time

1.5x lift1.8x profitable

2.0x lift


Retention– long tail of loyal customers

long tail


Order Value – customers increase spend

1.12x lift


Frequency – customers spend more often

1.05x lift


Customer profitability grows over time

2.0x lift

1.5x lift1.8x profitable


MYTHCoupons cheapen the brand perception


Customer Value Tiers

• 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


Largest contribution from smallest population


Gold customers are most valuable

1.5x lift

1.4x lift

1.3x lift


MYTHCustomers would buy

anyways, without a coupon


Coupon usage on the rise

17% 20%0%


Google “istock promo code”


Why leave it to chance?

29

MYTH“Last Click” Coupon Affiliates steal

sales



Short sales cycle to make a purchase

Average = 2.04 days


Conversion rates by affiliate type

Average2.1%


Minimal clicks and overlap amongst affiliates

Less than 6%

overlap


Key Takeaways

Myth Truth

Customers spend less with a couponCustomers 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

34

[email protected]

www.gettyimagesaffiliates.com


Date post:	29-Oct-2014
Category:	Business
Upload:	affiliate-summit
View:	4 times
Download:	1 times