A large fashion retailer struggling with Incremental affiliate growth
This use case explains how Odyssey Attribution helped a large fashion (e-)retailer get better insights into the performance of their affiliate publishers and how they used that information to optimize the channel.
“Coupon websites are being overpaid by five percentage points, with a current commission of 7%, compared to a suggested commission of only 2%”
Large uncertainty about the incremental value of affiliate publishers
This large fashion retailer had no insight into the true performance of its affiliates. We analysed the existing data based on our Multi-Touch First Click Linear attribution model. The initial result of this new way of looking at the data was as follows:
“Coupon websites are being overpaid by five percentage points, with a current commission of 7%, compared to a suggested commission of only 2%”
More focus on initiating customer journeys
By choosing the first click linear attribution model, the retailer valued the touchpoints at the beginning of the customer journey the highest. It didn’t want coupon sites to intercept Google searches for its brand name combined with the word “coupon”, but it saw an interesting potential in the user database of coupon sites.
Based on the Odyssey insights, the fashion retailer, therefore, decided to reduce the commissions of several coupon sites and invested this money in paid placements on these same websites.
The overall goal was to get more incremental value out of these publishers.
Crunching
The numbers
growth
in incrementality
+239%
Suggested
commission increase
+230%
growth
of transactions
+80%
Increase of attributed revenue
to the coupon sites
+219%
Better cooperation with fair compensation
The result of focusing more on incrementality resulted in not just a higher incrementality index but also a significant growth in transactions and attributed revenue to these coupon sites. This resulted in a much closer relationship between the advertiser and the publishers with also a model in which the publisher is being rewarded fairly for the work they do.
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