How Strategic Changes Saved a Client $560,000
AP team saved client (Client X) $560,000 in under a year; migrated their affiliate program to a new technology platform; adjusted their affiliate commission structure; shifted their attribution to an external payout model; brought on higher-quality affiliates who drive incremental sales for their program.
Pursuing a New Path
Prior to working with Acceleration Partners, Client X hadn’t worked with an affiliate program management agency before. They were interested in changing their external attribution model from Last Click to Last to Cart and were unsure about making that transition. After researching AP, they discovered we had helped other merchants successfully structure their program with the Last to Cart model and chose us to manage their program.
Misaligned Models and Measurements
Like any smart company, Client X wanted to be cost-conscious and strategic with their affiliate marketing spend while also ensuring that they only paid for incremental sales in their program. To help them accomplish this, the first thing we looked at was the affiliate network technology platform they were using (we’ll call them Network X). Our team discovered that Network X did not offer any alternative payment attributions other than Last Click. We also evaluated their commission structure and found that it did not complement their incremental sales goals.
After researching the technology platform options available, Client X’s team chose Impact Radius’ SaaS solution.
In addition to transitioning Client X over to a more attribution-friendly platform, a short-term challenge that arose was the significant drop of coupon affiliates from their program.
Although many coupon affiliates dropped off, Client X saw a rise in new content affiliates joining their program, such as travel bloggers.
One Step at a Time
The multi-step approach that the AP team took to partially migrate Client X’s affiliate program and their affiliates over to the new technology platform made it possible to see how each transition stage (technology platform migration, commission changes, moving from Last Click to Last to Cart) affected their program’s performance. This allowed the team to take a step back and make adjustments as they went through the process.
Client X wanted their transition to a new technology platform and attribution model to be as thoughtful and cost-conscious as possible. As such, they kept part of their program and select content and loyalty affiliates on Network X’s affiliate platform. To make it possible for Network X to properly commission these affiliates based on Client X’s new Last to Cart model, Impact Radius set up a “postback” feature.
Another benefit to making these changes in their program structure is that Client X is now able to integrate all of their channels (affiliate, paid marketing, organic search, email, etc.) through one technology platform. Their Last to Cart attribution model and payment platform is set-up to not only monitor affiliate activity, but also to see how their affiliates’ activity performs and assists with Client X’s other channels.
A Profitable Pursuit
When the AP program management team initially pulled projections of what they thought they’d be able to save Client X through these strategic changes, the amount was approximately $185,000.
After migrating them to Impact Radius’ SaaS platform, changing their attribution model from Last Click to Last to Cart, and reducing coupon affiliates’ commission, the AP team was able to save Client X $560,000 between February 2016 and December 2016. By year’s end, their program was already seeing YoY growth.
In addition to blowing out cost savings projections, the AP team:
- Cleaned up the affiliates within their program and replaced underperforming and Last Click-focused affiliates with high performing content affiliates – all with minimal impact to their revenue.
- Helped all of their marketing channels work cohesively together through Impact Radius’ SaaS platform.
- Contributed to the growth of their other marketing channels and to the holistic growth of the company.
- Put Client X on a healthy, incremental growth path for 2017.
- Strengthened Client X’s confidence in Acceleration Partners and our performance-driven approach.
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