The economic downturn and fears of an impending recession are influencing consumer spending habits. According to a recent survey conducted by Deloitte, around 40% of consumers are delaying large purchases due to market conditions. Approximately the same number of respondents express concerns about their current savings.
Volatile economic conditions can impact both consumers and the brands that serve them. Fortunately, brands can keep their affiliate marketing strategies going strong and fortify relationships with affiliate partners by:
1. Prioritizing Communication
Communication is foundational to any relationship, including your affiliate and influencer partnerships. Set the stage for great communication from the outset of any new partnership.
In an uncertain economy, effective communication becomes even more critical for brands' affiliate programs. Clear and consistent communication can help to alleviate any concerns and build trust between a brand and its affiliates. Additionally, in a challenging economic environment, brands may need to pivot their marketing strategies, and effective communication with affiliates can ensure that everyone is on the same page and working towards the same goals.
2. Nurturing Trust
There are lots of different ways to nurture trust with your affiliates. Most importantly, a focus should be to build mutually beneficial relationships with your partners. Brands that prioritize transparency, communication, and support can establish a positive reputation and cultivate long-lasting relationships with their affiliate partners.
Some actionable ways to build trust with partners include:
- Providing regular updates on sales, promotions, and product launches
- Supplying the necessary tools and resources
- Offering fair commission rates and timely payouts
When you are reliable and consistent in your partnership interactions, your affiliates will develop a sense of loyalty and trust toward your business.
3. Exhibiting Flexibility
Economic downturns are tough on everyone, including your affiliate and influencer partners. With this in mind, assess whether your brand can maintain flexibility within your affiliate program by implementing one of these strategies:
- Offer personalized commission rates based on the performance of your affiliates. For example, if an affiliate is experiencing a drop in sales due to the economy, consider offering them a higher commission rate to incentivize them to continue promoting products/services.
- Be open to negotiating terms with affiliates, such as extending payment periods or adjusting minimum sales targets. This can help alleviate financial stress for partners who may be struggling during the uncertain economic climate.
- Consider diversifying your product offerings to appeal to a broader range of consumers, particularly those who may be more budget conscious.
By being adaptable and accommodating where possible, brands can maintain healthy relationships with affiliates—often resulting in more sales driven—while weathering the economic storm.
4. Getting Aligned with Affiliates
If you want your partnership marketing program to thrive, you need to ensure that your affiliates are aligned with your goals, objectives, and values. When everyone is on the same page, all of your outreach and lead-generation efforts will be more effective.
If you're concerned that your current line-up of affiliates doesn't match your brand values, consider revamping your network by finding a partnership marketing agency with the strategic program management and support needed to remain relevant and achieve performance goals in today's competitive market and challenged economy.
5. Optimizing Attribution Capabilities
Your affiliate and influencer partners rely on your attribution model to receive compensation for their efforts. With that in mind, it is critical that you have an efficient, accurate way of collecting data on partner performance.
At Acceleration Partners, we can make data-backed recommendations for program adjustments to commissions, attribution, and your partner mix. All captured adjustments will be benchmarked against go-forward performance.
Example: One client sought to change their external attribution model from Last Click to Last to Cart, but were unsure how to make that transition. Learn how AP strategically shifted their attribution to an external payout model, among some other vital changes, resulting in $560K cost savings.
6. Collaborating with Your Partners
Great affiliate partners can be tough to come by. When you add one to your program, make full use of this valuable resource. This means collaborating with their team and gathering feedback about how they are delivering results for your brand. You may be able to obtain actionable insights that you can incorporate into your internal marketing strategy as well as opportunities for innovation.
7. Connecting with Top-Notch Affiliates
Affiliates, influencers, and other partner types are the lifeblood of any partnership marketing strategy. If you want to elevate the performance of your campaigns, you need top-notch partners.
In the industry, the approach of Acceleration Partners towards partner recruitment is one of a kind. To ensure the success of any program, we believe that partner recruitment and activation is crucial, and to that end, we have our own Partner Development Team in-house. This team's primary responsibility is to find and onboard innovative partnerships.
We take the time to know your brand and learn about your target audience, product offerings, and unique selling propositions. Our team then recruits a strategic blend of both traditional and non-traditional partners such as affiliate, influencer, content, referral, mass media, and B2B, depending on your specific needs.
8. Embracing an Agency with Proven Success
If you want to pursue growth amidst the looming economic downturn, you need to pull out all the stops. This means working with a talented partnership marketing team with a proven record of success. Acceleration Partners is that team.
Continued Success with Acceleration Partners
Finding and maintaining strong partnerships is key to weathering any economic condition. When you need help connecting with the best partners for your brand, rely on Acceleration Partners. We have helped clients in a broad range of industries leverage partnership marketing to achieve unprecedented growth.