beyond customer acquisition opportunities affiliates can bring
DESCRIPTION
Session highlights examples where merchant/affiliate collaboration sparked tremendous growth including improving overall site conversion; identifying hot product trends; and translating online success into offline retail sales.TRANSCRIPT
Beyond Customer Acquisition:Opportunities Affiliates Can Bring
Angel Djambazov, OPM, Custom Tailored Marketing
Brief Introduction
Came from a background in journalism into the online space.
Worked with brands like Bag Borrow or Steal, Penta Water and Onlineshoes.
Awards: Affiliate Manager of the Year (2006) from Affiliate Summit,In-house Manager of the Year (2006) award from ABestWeb,Part of team awarded Best Affiliate Tool of (2007) from ABestWeb.
Currently I am the OPM for Jones Soda and Keen Shoes. I also have the pleasure of being one of the founding team members of PopShops.com and I am serve as the Managing Editor for Revenews.com.
While it is true that the Affiliate Channel creates customer acquisition it is easy to pigeonhole affiliates into such a role.
By doing so a merchant will miss out on an a variety of ways affiliates can help grow their business.
Opportunities Affiliates Can Bring
Opportunities Affiliates Can Bring
1) Product Expansion Opportunities
2) Technical Insight/Solutions
3) Establish Niche Audience Connections
4) Can Help Maintain Clean Channel
5) Evolve Online Success into Offline Opportunity
For the Nurses
Dilemma: Merchants sometimes miss opportunities because they are too focused on the top selling products.
Scenario: Niche affiliate site informs merchant of opportunity based on knowledge of customers or segment.
For the Nurses
Real World Example: Onlineshoes was asked to bring aboard Nurse Mates brand by niche nursing affiliate. Previously merchandising team had discussed bringing Nurse Mates on but never prioritized it. Based on affiliate request brand acquisition was expedited.
Result: Nurse Mates became the #2 best selling brand in the occupational category.
Opportunities Affiliates Can Bring
1) Product Expansion Opportunities
2) Technical Insight/Solutions
3) Establish Niche Audience Connections
4) Can Help Maintain Clean Channel
5) Evolve Online Success into Offline Opportunity
Once Upon a Coupon Code Box
Dilemma: Coupons can be very effective and coupon affiliates can be valuable partners. However placing a coupon code box in the shopping cart can lead to cart abandonment.
Scenario: Affiliate suggests technical solution to take advantage of offering coupons while keeping customers in purchasing funnel.
Enter Coupon Code
Once Upon a Coupon Code Box
Real Word Example:
Step 1) Obscure Coupon Box to all affiliate traffic.
Enter Coupon CodeIf Affiliate Traffic then=
click.linksynergy.com
Once Upon a Coupon Code Box
Real Word Example: Step 2) Create “link-only” coupon that displays clearly for customer upon click through from affiliate site the offer they are receiving.
If Shopper Clicks
on affiliate link
Once Upon a Coupon Code Box
Real Word Example: Step 2) Create “link-only” coupon that displays clearly for customer upon click through from affiliate site the offer they are receiving.
If Shopper Clicks then Display
on affiliate link clear dialog defining promotion:
You will receive 10% OFF all sale items.
Once Upon a Coupon Code Box
Note: Obscuring the Coupon Box may not be right for every merchant, especially catalogers, and requires an element of technical proficiency
Result:
Decreased shopping cart abandonment and increased conversion up to 2%.
Opportunities Affiliates Can Bring
1) Product Expansion Opportunities
2) Technical Insight/Solutions
3) Establish Niche Audience Connections
4) Can Help Maintain Clean Channel
5) Evolve Online Success into Offline Opportunity
About Ron Paul
Dilemma: Merchants so focused on restrictions of event timeline that “die-hard” fans left out.
Scenario: Niche affiliate site informs merchant of opportunity based on flood of email requests.
About Ron Paul
Real World Example: Ron Paul Soda was added to the mix of Jones Soda Campaign Cola offerings.
About Ron Paul
Real World Example: Ron Paul Soda was added to the mix of Jones Soda Campaign Cola offerings.
Result: Although three weeks late to “campaign” quickly became #2 candidate thanks to extremely loyal following
Opportunities Affiliates Can Bring
1) Product Expansion Opportunities
2) Technical Insight/Solutions
3) Establish Niche Audience Connections
4) Can Help Maintain Clean Channel
5) Evolve Online Success into Offline Opportunity
Police Stories
Dilemma: Affiliate managers must police ever changing tactics across a variety of affiliate types in order to keep blackhats, and parasites out of the channel.
Scenario:
If affiliate managers are willing to listen AND act, professional affiliates often serve as a sort “neighborhood watch” for a program
Police Stories
Real World Example 1:
At Onlineshoes and at Bag Borrow or Steal, I inherited programs that were essentially on autopilot. In both instances impressions were high while clickthroughs and conversions were low.
Both programs needed cleaning which I undertook with the assistance of affiliates.
Police Stories
How Affiliates Helped with the Cleaning Process:a) Researched and learned from established resources in the
Affiliate Channel for guidance. Such as:
b) Utilized search affiliate and network partners to spot trademark poachers
c) Responded to affiliate concerns when unauthorized spam email was received.
Police Stories
Result:
In both cases CTR and Conversion rate in Affiliate Program improved significantly after the cleaning. In the case of Bag Borrow or Steal’s program in March 2008 the program saw:
Clickthrough rate increase 31%Sales increase 28% all with 700,000 less Impressions year over year
Such success is a clear indication of how relevant the affiliate traffic had become.
Opportunities Affiliates Can Bring
1) Product Expansion Opportunities
2) Technical Insight/Solutions
3) Establish Niche Audience Connections
4) Can Help Maintain Clean Channel
5) Evolve Online Success into Offline Opportunity
Case of lolcats
Dilemma: Merchants often feel affiliate promotions do not translate into “real world” success offline.
Scenario: Affiliate based social media campaign provides retail opportunity solidified by community response.
Case of lolcats
Real World Example: Jones Soda launched Social Media based ccampaign with ICHC. Campaign drove record online sales in May and June of 2008.
Afterwards upon seeing the community response Jones Soda decided to create lolcat labels.
Case of lolcats
Result: Jones Soda was able to capitalize on offline opportunities with big box partners like:
In Closing
The Key: Is to treat your affiliates like part of your marketing team. Let them help you discover opportunities you might otherwise miss.
