I say concurrently because the parts of the cycle mix together in so many ways that setting them out in order could be misleading. When you are getting set to start a new venture, THINK will come first, since planning goes into all you do. However, you don’t quit thinking at the moment that you ENGAGE. In actuality, your very first sale should be a cause to consider what went right and what might have gone better. THINK is the most liquid stage. You should never stop considering improvements to your marketing program. ENGAGE and THRIVE will be the outcomes of clear thinking and follow-through. THINK paves the street, ENGAGE drives the vehicle, THRIVE is the destination.
Of those three, ENGAGE is the most special to the marketing area. When you ENGAGE, you create an emotional connection with the customer. How can you tell when you have engaged? That’s easy. You sell product. See how this suits my definition of promotion? Consider an example.
Let’s say you rent out some space in a mall. You have a machine which makes sno-cones. How are you going to get people to buy? Through marketing. For your sno-cone organization, marketing might indicate dance around in a cardboard cone, handing out samples to children coming from the movie theater. The lawsuit costs you $40. Fifty to a hundred sno-cones are $1.50 in syrup. Your rent and power are regular expenditures, so they do not figure in the advertising budget. Time does, of course, so that you spend ten minutes giving out merchandise at six unique showings every day, for a total of seven hours spent in the span of a week.
During that week, your earnings triple. Why? Because the children you hand your sno-cones to inform their friends who tell their friends who appear at times you are not giving product away. Even better, their mothers tell their mother friends, who do not mind paying full price for a half hour of peace while they are trying on chinos. Since you took the time to ENGAGE, your company boomed. Your financial investment has been minimal, and nothing compared to a return. Thinking about who your customers are and what they love paid off. Now imagine that in the midst of the promo week, the mall holds a unique event with clowns and a balloon monster man. Think it would be worth changing your strategies to get in on the action?
That’s why you must keep thinking. Be flexible. Keep reading the information. Get ready to adapt. You are selling two hundred sno-cones each day. How can you get to two million, or twenty million? Perhaps the mall cancels the balloon man. What would it cost you to bring you?
THINK ENGAGE THRIVE is a cycle because as soon as you find something which works, you go back to determine what’s going to work even better. Each time you engage with clients, you learn a bit more about what they love. You build your customer base and set up yourself to grow.
Now that we are clear on how to apply THINK ENGAGE THRIVE, I’ll go deeper into every component, beginning with THINK.
The summer months are slow for many ecommerce merchants. It’s an exceptional time to do some housekeeping and prepare for the upcoming busy season. Take a few days to review the key performance indicators from the affiliate marketing efforts from January to June.
Affiliate marketing KPIs are different than overall ecommerce metrics. Company leaders will probably monitor the normal top-line amounts, such as return on ad spend. However, the affiliate station usually has among the greatest ROAS ratios. Thus good managers will need to concentrate on a deeper set of affiliate marketing KPIs to demonstrate progress and success.
It’s easy to manipulate certain KPIs throughout the affiliate channel. Others are merely untrustworthy. Remove the following from your attention.
Earnings per click. This is a conventional metric based on earnings per 100 clicks. With so many unique versions of active affiliates, this average can be skewed heavily by accident or on purpose. If coupon websites convert at a higher speed, then the EPC numbers will provide false hope to potential content affiliates. If coupon websites receive lower than default commissions, content affiliates may not be interested in linking based on reduced EPC prices.
Managers that are looking to push up the EPC could readily pay higher commissions to each model. This would aid the program in attaining higher network positions but would also dramatically increase the cost per client.
Number of affiliates. Merchants that are focused on the amount of affiliates in their program as opposed to the caliber are making a massive mistake. Programs don’t need 500 new affiliates per month. They want five great affiliates which will make immediate promotions to new audiences. A program with 200 affiliates can perform just as nicely than one with 10,000.
Percentage of active affiliates. The affiliate station has a casual 80-20 rule — 20 percent of affiliates typically generate 80 percent of earnings. The majority of the affiliates approved will not send one click. An eager manager will eliminate 80 percent of their affiliate base and maintain a higher proportion of activity in the program. But eliminating inactive affiliates just angers them, prompting them to warn others.
Conversion rate. The internet development and marketing departments are responsible for conversions when shoppers arrive at a website from affiliate promotions. Affiliates have no influence at the point. Coupon and loyalty websites will convert the highest. Other versions will vary wildly. However, the average conversion rate from all affiliates typically mirrors the general website conversion.
These KPIs are the most significant to in-house supervisors. They’re also important to outsourced program managers and community management, based on their access to internal metrics, such as new clients and comparisons to other stations within the brand.
Year-over-year growth. May 2017 might have been a fantastic month for affiliates due to Mother’s Day. Compare those orders and sales to May 2016 for expansion. Don’t compare May to June. Seasonality is a big factor for most affiliates. Each of the numbers can fluctuate month to month.
Managers should take a look at the current month in the previous year to account for any drops or spikes. A flash sale last June with huge sales numbers could make your normal monthly earnings this year appear weak. This possible discrepancy has to be mentioned in the monthly analysis.
The”expansion” statistic applies to orders, internet sales, clicks, affiliates busy with clicks, and affiliates busy with earnings.
- Orders. Double-digit expansion of orders is always an indicator of a healthy and flourishing program.
- Net sales. This is the net revenue generated by the affiliate station after deducting affiliate commissions. Average order value can affect net sales if affiliates concentrate on low-priced goods. Big variations in monthly internet sales should be researched and noted.
- Clicks. Managers constantly want more clicks in the affiliate station. However, the quality of clicks thing. Substantial increases should be investigated because this may lead to reduce conversion rates and traffic from unwanted sources. Decreases may mean a fantastic affiliate has left the program.
- Affiliates busy with clicks. This is a fantastic indicator of program development. Managers want to see this number grow consistently. Higher active rates demonstrate powerful recruiting and activation procedures.
- Affiliates busy with earnings. If”Affiliates busy with clicks” is a fantastic indicator of expansion ,”Affiliates busy with earnings” is a fantastic index of health. Both metrics are related. Success with the latter is contingent upon a strong conversion rate of the goods or services promoted.
New affiliates approved. Recruiting never finishes for an affiliate program. Some affiliates retire or give up promotions. Others are bought by competitors and the first account becomes dormant. Managers must always be reaching out to new affiliates with different promotion models. How many recruitment pitches did you ship? How many were approved?
Average order value. Is the average purchase value different in the affiliate station from other marketing campaigns? Examine what products were encouraged by affiliates and determine if they’re choosing inexpensive items because they think that is what shoppers want. 1 affiliate with a high conversion rate of lower priced items can affect overall net sales and average order value. A supervisor can describe to the affiliate about missed chances on higher-priced best vendors.
Percentage of new clients. In-house managers can quickly dive into analytics and ascertain the amount of new customers being driven by the affiliate station. Tracking pixels for many networks may report new clients also, if the merchant’s cart and backend support it. If the amount is reduced, the recruiting team should find more niche content affiliates with viewers who haven’t been exposed to the brand or products.
Campaign success. If a merchant holds an affiliate competition or tests a new consumer marketing through affiliates, results should be noted in the monthly summary. It is always worth testing something new. This month’s collapse could result in success next month when changes are made.
Proportion of content and coupon affiliates. Always try to find a balance between loyalty and coupon sites and niche content websites like bloggers and influencers. The standard should be no less than 40 percent content driven. Content affiliates are more likely to create new customers.
Proportion of affiliate earnings versus overall sales. Typically 10-20 percent of companywide sales come from affiliate marketing. I have seen it as low as 5% and as high as 60 percent. The bigger the brand, the smaller the proportion.