For those seeking to understand affiliate campaign management, it is important to know that the picture is complicated. Managed properly though, affiliate campaign management can boost 5-15 percent of online revenue and boost the ROI to record levels. Affiliate marketing is an important part of your toolkit and must be integrated into overall marketing strategies for business success.
What is Affiliate Campaign Management?
Affiliate campaign management involves handling the affiliate marketing networks of a business entity. Affiliate marketing essentially involves merchants or businesses paying a commission to affiliates. Affiliates are online entities that refer new business to the website of the merchant. This is a performance-based marketing, where affiliates only get paid when promotional efforts result in a transaction. Affiliates can range from bloggers to content sites related to the business.
How It Works
Affiliates work to introduce visitors to merchant brands. They may write a post about new products or promotions on the site of the merchant. They may also feature banner advertisements on their site that drive people to the business site. Additionally, affiliates may motivate consumers to shop at a particular site with a special coupon code. If people come from the affiliate site and make a purchase, the affiliate is paid.
Why Your Business Needs Affiliate Campaign Management
Conventional affiliate programs comprised loyalty and coupon sites. As the industry grew, bloggers came into play at prominent places in many programmes. Managing affiliate campaigns involves formulating innovative programmes and partnerships to promote a business. Here are the reasons why campaign management can give your affiliate marketing a boost.
#1 Performance Based Incentives for Top Performers
One of the biggest reasons for the value of affiliate marketing campaign management is that this mode of marketing provides higher ROI than other channels. Affiliate marketing is performance based, so merchants pay for actual purchases, not just clicks or visits. This beats PPC marketing, where clicks may not translate into conversion. But bear in mind that where multiple affiliates are involved, the payment cycle is extremely complicated. Claiming commissions for customers involves the use of multi-channel attribution to ensure affiliates generating the most value are most rewarded. For this reason, campaign management services are essential.
#2 Multiple Networks That Must be Managed
Affiliate programmes are organised and administered through numerous affiliate networks. Some programmes work on multiple networks, while others are consolidated on one. Major affiliates work with various networks. Networks also track customer progress all the way from the affiliate content to the merchant’s site shopping cart. For handling the complexities of multiple networks, affiliate marketing campaign management is a must.
#3 Getting Quality Affiliates
Whenever managing a programme, recruiting quality affiliates and engaging them is the way out to promote products and services in an optimal way. For screening affiliates, the campaign management professionals can certainly help. Affiliate marketing itself is a complex mosaic of different partners and moving parts. While all are clicking, it is a wonderful source for new customers and a way to put the brand in the limelight.
Whether it involves establishing programme goals, deciding on the affiliate profile, making a choice about reward types, mode of payment and review affiliate marketing campaigns, the affiliate programme manager makes it all work.
#4 Setting Goals
Affiliate marketing programmes comprise a mix of affiliate partners. Clarity in goal setting for the programme creates parameters on the basis of which affiliates one wishes to identify and recruit are delineated. Equally crucial, goal setting differentiates short-term objectives from long-term aims. Is the goal to create momentum for a fresh product launch or shift slow moving stock at the close of a quarter or season? A big bang incentive is, therefore, the right choice. For long-term campaign management, managers can help you to launch to a new area or expand customer base and revenue across the years. Partnering with sites to which shoppers return and interact with becomes easier.
#5 Understanding the Customer
Effective affiliate marketing campaign management involves recruiting new affiliates on the basis of what the customer wants. Understanding how customers shop, sites they visit and newsletters they subscribe to can help your business to pick an affiliate that specialises in the niche and attracts target customers. Choosing the right affiliate depends on what the business aims for. If too few visitors are coming to sites, or there is failure to convert or even a high cart-abandonment rate, selecting the right affiliates can make a big difference.
Opting for relevant affiliates in the niche provides a true upside and source of fresh customer acquisition. Product reviews and announcements through effective affiliate campaign management can also increase conversion and remarket products and services to customers on the verge of abandoning the brand. Then, choosing between content monetization or incentive affiliates and understanding how sites with cashback and loyalty portals can rev up business is all within the domain of the affiliate campaign manager.
User research also reveals sites popular with customers or potential prospects. Web analytics tools can also be effectively utilised. Additionally, the portfolio of affiliates is an important factor to consider while choosing an affiliate network.
- Deciding Incentive Types
It is also essential to determine which sites play a crucial role in influencing purchase decisions and how they should be given higher incentives to attract more customers and stay out of the grasp of competitors. Affiliate fees and commissions vary. Retailers can pay anywhere between 5 to 15% in percentage of sales, but other industries offer even more competitive rates like web hosting agencies. Cost per lead can also vary from USD 5 to 10 based on the industry. Retailers reward affiliates in a different way for distinct product types. Amazon, the largest affiliate network operator in the world, for example, pays 0% for win, 3% for toys or 8% for Amazon Kindle devices. Other retailers offer different fees. ASOS UK AWIN affiliate network, for instance, pays 5% commission, but offers loyalty and cashback partners 10% for fresh customers and voucher code partners around 3%.
The deserving affiliates must be paid higher if your business has to prosper. For this reason, it is essential to be able to offer commissions based on sales attributions and offer commissions. Save on manpower and training costs by hiring affiliate campaign management through a skilled campaign management services provider and power your business to grow its reach and multiply its profits.