I aim to dispel the myths that coupons are a brand damaging tactic and that they add real value to our business with increased AOV’s, conversion and Year time value vs. the total online business.
Experience level: Intermediate
Target audience: Affiliate/Publisher
Niche/vertical: B2B
Blair de Jong, Affiliate Marketing Manager, Getty Images (Twitter @blairdejong)
2. Worldwide leader in digital content
Getty Images
Leading provider of digital
media content worldwide
B2B Coupon Affiliates - Affliate Summit West 2013 2
#83987151, Maarten Wouters/Stone+
3. Why are we here?
Understand incremental value
3
#16933741, iStockphoto
5. Maybe you’ve heard one of these before…
• Customers spend less with a coupon
• Coupon customers are less profitable
• Coupons cheapen the brand perception
• Customers would buy anyways without a
coupon
• “Last click” coupon affiliates steal sales
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6. The Direct and Indirect Value that Affiliates Deliver to
Advertisers
Research reported conducted by Forrester Consulting
on behalf of Rakuten LinkShare
6
7. Key Findings
• Generates incremental new customer acquisition
• Online buyers are deal-driven and more likely to buy a product
they find merchandised or advertised on multiple websites
• Attracts consumers who spend more than the average online
shopper and are profitable for advertisers.
• Affiliate marketing helps trigger brand reconsideration, often
closes the sale
• Promotions offered in the affiliate channel have a positive
impact on an advertiser’s brand reputation and loyalty
Source: Forrester Consulting on behalf of Rakuten LinkShare
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14. What is a Cohort?
• A population of customers
sharing common attributes
– 1st purchase with a coupon
– 1st purchase without a coupon
• Follow activity across a
period of time to understand
customer behavior
– Q1 2011 to Q3 2012
– Normalize over 12 months to
measure year-time value
(YTV)
#200516675-001, James Lauritz / Digital Vision
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15. Average Revenue per User (ARPU)
Total Revenue
over X period
Average Revenue
=
per User
Total Cohort
Population
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16. Customer profitability grows over time
1.5x lift
1.8x profitable
2.0x lift
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17. Retention– long tail of loyal customers
long tail
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18. Order Value – customers increase spend
1.12x lift
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19. Frequency – customers spend more often
1.05x lift
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20. Customer profitability grows over time
1.5x lift
1.8x profitable
2.0x lift
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30. Short sales cycle to make a purchase
Average = 2.04 days
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31. Conversion rates by affiliate type
Average
2.1%
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32. Minimal clicks and overlap amongst affiliates
Less than
6%
overlap
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33. Key Takeaways
Myth Truth
Customers spend less with a coupon Customers spend 2-3x more with a coupon
Deeper discount ≠ higher spending
Coupon customers are less profitable Coupon customers are more profitable
both in the short and long term
Coupons cheapen the brand perception Most valuable and loyal customers use
coupons
Customers would buy anyways without a Coupons part of everyday shopping
coupon Coupons retain loyal customers
“Last click” coupon affiliates steal sales While each affiliate type has a role to play,
minimal overlap between affiliates
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