One benefit of the affiliate channel is that we can test and learn across multiple publisher types. Over time, we can then understand what promotional mechanics drive the best results across key publishers. We also want to align the above data around promotions and LTV at a publisher level.
This enables us to address where we invest moving forwards. We naturally want to create a programme with a high rate of new customers and also a high LTV, and by making changes to CPAs and tenancy investment we can then improve the overall CPA. This tactic can be shared across multiple industries, for example travel, transport, retail etc. Leveraging a SaaS partner will also help to unlock bespoke commission rules based on product and LTV, and help you to collate the data better to make informed decisions.
Hope Walker, Senior Affiliate Marketing Manager said: “It is crucial to have a methodology for measuring LTV at a partner level, whether this is setup to report in your core tracking (using SaaS platform capabilities) or if this is done through the tailoring of uniquely identifying voucher codes per partner, which can be traced through the history of a customer account. Without a view on LTV metrics at a partner level, there is now way to truly optimise the work you do in the channel to drive up this KPI.”
Earlier, we mentioned considering a local strategy to generate new customers. This can combine with the strategy to encourage a higher LTV. If we look at offer mechanics based on geo-targeting we can review demographics and target campaigns based on audience segmentation. For example, a more affluent customer may convert higher for a premium membership or longer subscription model.
Finally, affiliates and partners are aimed towards a conversion of the brand’s choice, though this is generally targeting a sale. However, the affiliate channel can work with publishers to drive users towards other calls to action like apps. Business data showcases that a user who converts who then interacts with the app might then have a higher AOV or higher LTV. Therefore, using publishers to drive users towards a certain device or browser will increase overall KPIs.