Making A Case For Coupon Affiliates
Some brands have hesitated to include coupon sites in their affiliate programs due to concerns about potential harm to their brand, lack of incremental revenue, and loss of control over coupon codes. However, our extensive experience managing affiliate programs for top brands has shown that coupon affiliates can be valuable partners that enhance a brand’s performance and contribute to its success.
With all the negative perceptions around coupon, we often miss the bigger story that coupons can drive consumer behavior! One example would be the speed in which a buying decision is made, with 39% of consumers shortening their path to purchase when coupons were available. And coupons aren’t going away, with the global digital coupon market expected to surpass $29.7 billion by the end of 2031.
With this in mind, coupons could be a key affiliate strategy to add to your partnership marketing program going into 2023.
Like all affiliate partners, the key to a successful relationship is being clearly aligned on goals and KPIs, expectations, and employing an agency with the ability to carefully monitor and help course-correct when needed.
It’s also important to not take a one-size-fits-all approach to any partner type. Each partner and their capabilities should always be looked at individually and in connection with a brand’s unique goals.
Why brands are turning toward coupons in our current economy
Despite the recent holidays producing exceptional sales and increased revenue for many advertisers, global economic activity is still experiencing a slowdown, with inflation higher than what’s been seen in several decades for many countries. Consumers are wanting to spend money, but they’re savvier and more eager to cut costs where they can.
As a result, we’ve seen significant growth from coupon partners (and other traditional affiliates). From January to September 2022, Acceleration Partners saw coupon, loyalty and deal affiliates increase revenue 35% YoY for our clients, and increase actions 55% YoY.
By leveraging a coupon affiliate, your brand can:
- Attract cautious, savvy consumers to your product or service
- Incentivize or compel a purchase that might otherwise be passed on
- Move outdated inventory through coupons on specific products or categories
- Increase your conversion rates and entice new customers for a future purchase
Consumers know prices are increasing and with an urgent promotion or offer, they will be more likely to convert at that moment instead of waiting for the item to go on sale or for a competitor to offer a better price.
Read our blog to discover strategies for creating a profitable coupon campaign.
How coupon partners are adding value to affiliate programs
In addition to contributing to your brand’s ability to meet the wants and needs of customers in our current economic climate, here are some additional ways coupon partners can contribute significant value via an affiliate program:
- Increase on-site conversions
- Increase brand awareness
- Facilitate impulse buys
- Promote up-to-date offers
- Offer a variety of placements
- Integrate easily into your program
- Coordinate trademark plus search
- Increase average order value
- Scale your affiliate program swiftly
- Gain advantages over competitors
Besides finding the right coupon partner fit for your unique brand, it’s also vital that your partnership is effectively and carefully managed. Below are just three examples of strategies Acceleration Partners (AP) implements.
- Proactive partner management. Your affiliate team should work closely with your coupon partners to build a strategy tailored to your brand and program – frequent and clear communication is a must.
- Lean on partnership experts. AP has an in-house Publisher Development team dedicated to finding you the right partner fit. Our internal teams are selective when it comes to our coupon partners, and work with coupon sites that have a proven history of success and compliance.
- Create a strategy in alignment with goals. From the beginning of any partnership, your strategy with your coupon partner should align with your business goals. This will allow your agency partner to make educated decisions, optimize your campaigns, negotiate high-value placements and promotions, and establish relevant metrics to track and measure.
Proven coupon partner success
Coupon affiliates are an efficient way for brands to feature special deals and promotions, drive traffic to their site, and increase on-site conversions. They are a traditional affiliate that should not be overlooked when building a well-rounded affiliate program. But don’t just take our word for it – let’s take a look at how some coupon partners have benefited our clients.
AP strategically onboarded coupon partners into Blurb’s affiliate program to drive incremental sales from new customers and cost-effectively help the brand realize impressive ROAS.
- 361% of revenue projection reached
- 30% of orders generated by coupon partners
- 50% ROAS increase for some partners
Acceleration Partners and affiliate CouponFollow created an innovative a Back-to-School newsletter to help AP clients increase revenue while offering an easy point-of-entry.
- +30K email recipients and 56% open rate
- +37% avg. revenue increase for brands
- +13% avg. clicks increase for brands
To meet Pura Vida’s revenue goals, Acceleration Partners brought on select coupon partners who were effective at driving bottom-of-funnel sales while maintaining the brand’s authenticity.
- Doubled prior year’s revenue
- $19K saved in affiliate commissions
After migrating technology platforms, Acceleration Partners helped Renogy work with coupon and loyalty partners to quickly drive sales and conversion rates.
- 1356% increase in total revenue YoY
- 19% increase in average order value YoY