The Case Study

Optimizing Affiliate Program for Improved Incrementality

Affiliate Analysis

Acceleration Partners helped an online marketplace client optimize their affiliate program to drive incremental value and exceed their YoY revenue goal by over 145%.

Results

Since incorporating key loyalty affiliate partners into their client's program and optimizing their campaigns, the AP team is now on pace to surpass the revenue goals initially projected for their client.

Client's monthly goal was exceeded by over

71%

The client's Y/Y revenue goal was exceeded by over

145%

The Challenge

A Slump in Sales

Since the inception of our client's affiliate program, coupon affiliates played a key role in helping drive sales to their online marketplace of independent artists.

However, as time went on, the client grew concerned that these sales weren't incremental. So, in 2015, the client decided to only accept content affiliates into their program. To accommodate their request, the Acceleration Partners team focused their efforts on recruiting, activating and optimizing content-focused affiliates (bloggers, review sites, etc.).

Within a few months of making this change, sales took a hit. What's more is that getting revenue volume back to where it was when coupon affiliates were a part of the program was a constant struggle. The significant downtrend in sales was due to the fact that content affiliates tend to serve as brand "introducers." While they can contribute to driving and closing sales, it can take a long time for them to establish enough trust and authority with their audience to encourage a sale. Conversely, coupon and loyalty tend to be drivers of bottom-of-funnel traffic.

Our Approach

A Partnership Shift

Appreciating the client's displeasure with the performance of their affiliate program, the Acceleration Partners team quickly introduced a solution: add brand-aligned loyalty affiliates to the program.

This recommendation had been suggested early on when the client made the decision to remove coupon affiliates from their program, but had been rejected as the client wanted to focus solely on content affiliates.

Now that their program was pacing around 30 percent below projections, the client was more open to new ideas.

"We came back to the client with a clear explanation for why they should test a few, strategically chosen loyalty partners in their program," said Account Manager, Zachary Cannon. "We understood and respected their reasoning for wanting only content affiliates in their program, so it was important for us to explain the value of incorporating content focused loyalty affiliates and how they'd be able to support – not take away from – their content partners."

The client agreed to the tests so long as the loyalty affiliates' initiatives weren't too promotional and only included cash back offers.

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