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
Segmentation, Attribution, and Motivation
Brian LittletonFounder/CEO ShareASale
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
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
The “Last Minute” Click
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
AVG TIMETO COMPLETE ORDER10 MinutesVS.$$
Click to Commission3 Minutes
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.
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
Remove Affiliates
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Masks the problemLeaves revenue on the table
“Head in Sand” technique
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
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.
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.
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
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.
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
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
Segmentation•Critical in developing a complex
commission structure.•Track trends and manages
positives/negatives
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Attribution•Use behaviour and rules to determine
commission
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Examples:The “Last Minute” Click
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
AVG TIMETO COMPLETE ORDER10 MinutesVS.$$
Click to Commission3 Minutes
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.
Scenario Building
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Coupons v. Content
Scenario Building
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Coupons v. Coupons
Things to look out for
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Contiguous clicks
Build the Rules“LeapFrog”
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Build the Rules“Big Sale”
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE
Encourage an Affiliate to play to their individual strengths.
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
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.
Questions and Discussion
SEGMENTATION, ATTRIBUTION AND MOTIVATION – BRIAN LITTLETON FOUNDER/CEO SHAREASALE