Date post: | 16-Jul-2015 |
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B2B Coupon
Affiliates
Affiliate Summit West 2013
January 14, 2013
#19468806, iStockphoto
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Worldwide leader in digital content
B2B Coupon Affiliates - Affliate Summit West 2013
Getty Images
Leading provider of digital
media content worldwide
#83987151, Maarten Wouters/Stone+
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Why are we here?
Understand incremental value
#16933741, iStockphoto
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True incremental growth?
B2B Coupon Affiliates - Affliate Summit West 2013
81% 73%
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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
B2B Coupon Affiliates - Affliate Summit West 2013
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The Direct and Indirect Value that Affiliates Deliver to
Advertisers
Research reported conducted by Forrester Consulting
on behalf of Rakuten LinkShare
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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
B2B Coupon Affiliates - Affliate Summit West 2013
Source: Forrester Consulting on behalf of Rakuten LinkShare
8#6442730, iStockphoto
MYTHCustomers spend less with
a coupon
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Customers spend more with a coupon
B2B Coupon Affiliates - Affliate Summit West 2013
3.1x spend
2.6x spend
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Deeper discount ≠ Higher spending
B2B Coupon Affiliates - Affliate Summit West 2013
11#3637662, iStockphoto
MYTHCoupon customers are
less profitable
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Coupons deliver immediate returns
B2B Coupon Affiliates - Affliate Summit West 2013
3.1x ROI
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Year Time ValueCohort Analysis
# 7465953, iStockphoto
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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
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Average Revenue per User (ARPU)
B2B Coupon Affiliates - Affliate Summit West 2013
Average Revenue
per User
Total Revenue
over X period
Total Cohort
Population
=
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Customer profitability grows over time
B2B Coupon Affiliates - Affliate Summit West 2013
1.5x lift
1.8x profitable
2.0x lift
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Retention– long tail of loyal customers
B2B Coupon Affiliates - Affliate Summit West 2013
long tail
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Order Value – customers increase spend
B2B Coupon Affiliates - Affliate Summit West 2013
1.12x lift
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Frequency – customers spend more often
B2B Coupon Affiliates - Affliate Summit West 2013
1.05x lift
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Customer profitability grows over time
B2B Coupon Affiliates - Affliate Summit West 2013
2.0x lift
1.5x lift
1.8x profitable
21#6592931, iStockphoto
MYTHCoupons cheapen the
brand perception
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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
B2B Coupon Affiliates - Affliate Summit West 2013
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Largest contribution from smallest population
B2B Coupon Affiliates - Affliate Summit West 2013
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Gold customers are most valuable
B2B Coupon Affiliates - Affliate Summit West 2013
1.5x lift
1.4x lift
1.3x lift
25#174759, iStockphoto
MYTHCustomers would buy
anyways, without a
coupon
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Coupon usage on the rise
B2B Coupon Affiliates - Affliate Summit West 2013
17% 20%0%
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Google “istock promo code”
B2B Coupon Affiliates - Affliate Summit West 2013
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Why leave it to chance?
B2B Coupon Affiliates - Affliate Summit West 2013
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MYTH“Last Click” Coupon Affiliates steal sales
#739213, iStockphoto
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Short sales cycle to make a purchase
B2B Coupon Affiliates - Affliate Summit West 2013
Average = 2.04 days
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Conversion rates by affiliate type
B2B Coupon Affiliates - Affliate Summit West 2013
Average
2.1%
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Minimal clicks and overlap amongst affiliates
B2B Coupon Affiliates - Affliate Summit West 2013
Less than
6%
overlap
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Key Takeaways
Myth Truth
Customers spend less with a coupon Customers 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
B2B Coupon Affiliates - Affliate Summit West 2013