How Large Mattress Retailer Optimized Incrementality in their Affiliate Program

How Large Mattress Retailer Optimized Incrementality in their Affiliate Program

CLIENT:

Large mattress retailer

 

CLIENT’S OBJECTIVE

Acceleration Partners’ client wanted to ensure that the partners in their affiliate program were driving incremental results. In addition, the brand had concerns about working with certain affiliate partners, including coupon, deal and certain loyalty partners, as the internal perception was that they weren’t driving incremental orders and could actually be costing the brand more money by attracting customers who may have already converted without the additional incentive.

 

CHALLENGE

Although incrementality was a priority, the Acceleration Partners’ client did not have a clear definition of what this concept meant for their affiliate program, nor did they have an efficient or accurate way to measure which of their affiliate partners were actually driving incremental value according to their unique definition.

 

SOLUTION: DEFINE AND MEASURE

Before the Acceleration Partners team could help their client measure the incrementality of their partners, they first needed to help them define what incrementality meant for their brand and affiliate program.

Acceleration Partners’ affiliate program management team and the client’s team collaborated to come up with an explicit definition for incrementality that reflected the performance value they were wanting to realize in their affiliate program. The team also helped the mattress retailer determine what key performance indicators (KPIs) they wanted to measure their partners’ performance against to evaluate incrementality.

Incrementality Data Dashboard

To accurately measure the incrementality of all the affiliate partners within the client’s program, the Acceleration Partners team developed an incrementality data dashboard. This dashboard was built to be compatible with the Insight reporting tool feature within Impact’s Partnership Cloud™ (affiliate technology platform the client’s program is hosted on).

 

IMPLEMENTATION: TEST AND LEARN

Once the client’s definition of incrementality was established for their affiliate program, the incrementality data dashboard allowed Acceleration Partners’ program management team to synch the customed incrementality data dashboard with Impact’s Insight report and implement a weighted scoring system– based on direction provided by the client’s team — to all the partners within their affiliate program.

This strategic approach automated the process of compiling performance data for the client’s program, allowed the team to measure incrementality of their affiliate partners and make better decisions for their client that were backed by data.

Within three months of gathering data and testing different approaches with partners, the Acceleration Partners team was able to determine which partners within the client’s affiliate program were driving incremental value and which were not – or were driving less value than other partners.

 

RESULTS

These data-backed insights made it possible for the Acceleration Partner team to optimize partnerships with affiliates who were driving significant incremental value and renegotiate cost structures with partners who were driving less, making the client’s affiliate program more cost-effective and better aligned with their specific incremental KPIs.

Since the inception of the new incrementality scorecard and weighting system, the client’s affiliate program has realized impressive results, including:

    • $1.07 increase in their Return On Ad Spend within six months of implementing their incrementality initiative.
    • Increasing revenue 40% year-over-year.
    • Exceeding revenue goal by +3% (103% to goal.)
    • Reducing spend efficiencies towards partners not driving incremental revenue to further incentivize partners that are, thus over-indexing against the client’s targets.
    • Greater transparency into the incremental value all of their partners were driving.

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