Affiliate Program Statistics and Their Importance to Publishers

Affiliate Program Statistics and Their Importance to Publishers

If you’ve ever wondered how publishers choose which merchants to promote or how you could appeal to more of them, it’s high time you learned about the importance of affiliate program statistics. What are these? They are the numbers publishers look at in order to assess whether a program is worth joining or not. They are your chance to stand out among competitors and should be a priority if you’re serious about building a successful affiliate program.

Sure, there are those sweet stories with influencers who buy a product, fall in love with it, and decide to let the world know. It would be ideal to have celebrities pay for your product and love it so much as to spread the word about it. Unfortunately, it rarely happens in real life. Most of the time, established reviewers and influencers choose which products to endorse based on their earning perspectives.

Instead of waiting for a miracle, you need to market your affiliate program and make it more appealing to publishers. The latter part involves getting your affiliate program statistics up. These heavily influence publishers’ decision of whether to join the program and start promoting your products or services. They also play a role in their decision of whether to continue to promote you and expand their promotions.

affiliate program statisticsWe’ll cover the most important affiliate program statistics and how you can improve them in the following lines. As you get to it, remember to always take into account what your competitors are doing. Publishers will compare you to them. It is in your best interest to have similar or even better program stats and offers. You cannot do that if you don’t know what their program stats and offers are. Therefore, always take the time to analyze competing affiliate programs.

Now let’s dive into the top 5 affiliate program statistics, also discussing ways how to improve yours.

1. Commission Rate and Average Commission

Affiliate program statistics referring to commissions tell publishers how much money they can earn per sale or lead by promoting you. Whether you’re paying them a percentage or a flat amount, you want to stay competitive. Our post on How to Calculate Affiliate Commission Rates should help you set appealing commissions while also keeping costs under control.

Publishers will always check your commission rates and average commissions. If you analyze competing affiliate programs, you will notice a discrepancy between the standard commission some of your competitors claim to pay and their average commissions. The discrepancy could have several causes, such as:

  • VIP commissions paid to select affiliates – A merchant listing a standard commission of 5% may pay 15 or even 20% to their top affiliates.
  • Bonuses and incentives – Tiered commission increases, temporary commission bumps, flat amount, or percentage bonuses can add up to a standard commission and increase the commission average.
  • Different commission rates for different products – Whether because of profit margin differences or stock clearance goals, merchants may choose to pay different commissions for different products. These differences may not be reflected in the displayed program commission rates but they will surely be reflected in the average commission.
  • Different commissions for different affiliate categories and levels of involvement – Many merchants nowadays decide to reward affiliates based on the value they bring and on their involvement in the sales funnel. Thus, some will pay different commissions for the first, middle, and/or final touch. Others will pay lower commissions to discount-oriented affiliates. It always makes sense to pay higher commissions to reviewers, influencers, and content affiliates.

The advertised commission rate represents the merchant’s promise or guarantee. The average commission rate shows how much the average affiliate earns with the respective merchant. Affiliates look at both because it helps them set realistic expectations. Sometimes, it also gives them the upper hand during negotiations.

2. Average Order Value

Whether you’re calculating commissions as percentages or flat amounts, publishers will also want to know your average order value (AOV). That is because earning 10% of $100 will never be the same as earning 10% of $1000. Also, for some publishers, it may be much easier to sell low-priced products than high-priced ones (think budget-oriented vs. luxury-focused publishers).

A higher average order value benefits both you and your affiliates, so it makes sense to try to improve yours. Here are a couple of ways to do that:

  • Large inventory: offer products or services that complete one another and cater to several needs of a large audience
  • Tiered discounts: the more buyers spend, the higher discounts or the more perks they should receive
  • Upsells:  suggest matching products and upgrades to your customers whenever and wherever possible
  • Financing options: split payments are a great way to make more expensive products affordable to anyone

The AOV can also represent an excellent key performance indicator for your affiliates’ activity, as Awin highlights here. An affiliate driving a lower volume of sales but having a high AOV could be as valuable as one driving a larger volume of sales but with a lower AOV. For some merchants, it even makes sense to create AOV-based commission tiers.

Just keep in mind that the AOV should be sustainable, justified. Buyers need to feel that they’re getting their money’s worth and even more. Otherwise, you could end up with returns, complaints, and a bad reputation. In turn, all these will negatively impact your affiliate program. Affiliates will think twice before promoting prohibitively expensive products, especially when quality, presentation, and/or customer service are subpar.

3. Conversion Rate

This is one of the most important affiliate program statistics publishers check. It tells them how many sales and commissions they can expect for every 100 visitors they send to your website. Unfortunately, although publishers often fail to understand that, the conversion rate depends on more than just your website’s ability to convert visitors into paying customers.

Thus, a merchant with a high-converting website could end up with a low conversion rate if the affiliates they work with drive untargeted traffic or publish inaccurate or outdated information. Similarly, a merchant with a low-quality website could see high conversion rates if they work with affiliates whose audiences trust their recommendations enough to overlook small website flaws. Also, display advertising usually converts at a lower rate than content and, especially, reviews.

It goes without saying that, as a merchant, you should do everything possible to ensure high-conversion. Some strategies worth considering are:

  • Website optimization: fast-loading easy-to-navigate website, attractive graphics and images, high-quality content, impeccable customer service, etc.
  • Attractive offer: competitive prices, attractive discounts and freebies, free shipping, loyalty program, hassle-free returns, extensive warranties, etc.
  • High-converting affiliate creatives: banners, videos, deals and coupons, datafeeds, etc.
  • Conversion optimization measures: upsells, opt-in push notifications, overlays to prevent visitors from leaving the website, shopping cart recovery emails, etc.

4. EPC (Earnings per 100 Clicks)

Affiliates are in it for the money. Of all affiliate program statistics, the EPC tells them exactly how much money they can expect to make on every 100 clicks they drive to your website. Most of them already know how much driving those 100 clicks will cost them, or what it could require in terms of effort. This metric allows them to calculate their return on investment.

The EPC is influenced by the commission and conversion rates. It will vary from one affiliate to the next, so the metric displayed in your affiliate program’s summary is the average of all your active affiliates’ EPC. Many affiliates use the EPC to decide how to rank merchants in their roundups and which offers to promote, so you want your EPC to be as high as possible. You can increase it by:

    • Paying higher affiliate commissions
    • Improving conversion
    • Offering higher buyer discounts
    • Recruiting more high-converting affiliates

5. Network Rank

Many affiliate networks rank merchants according to their affiliate programs’ performance within the network (ShareASale has its PowerRank, CJ, Pepperjam, and AvantLink give each program a ranking on a 4-5-bar scale, and so on). When choosing which merchants to promote, publishers even have the option of sorting through them by rank. As a merchant, you want the highest rank possible.

This is also one of the most relevant affiliate program statistics when it comes to measuring program performance, especially by comparison with competitors. While the algorithms that networks use to calculate the rank remain a mystery, the following metrics definitely play an important role:

  • Sales volume
  • Conversion
  • Commissions
  • Affiliate interest
  • EPC
  • Refunds rate
  • Active vs. inactive affiliates

Other Important Statistics and Details

The above are the most important metrics publishers check when deciding whether a merchant is worth promoting or not. However, depending on their experience with various merchants and their promotional methods, they will consider other details as well:

Low Funds and/or Auto-Deposit ON/Off 

Publishers prefer merchants who have activated auto-deposits for their accounts or at least do not go into low-fund status because it gives them confidence that they won’t be left with unpaid commissions if the funds in the merchant’s network account run out. Therefore, if the network where you host your affiliate program allows it, turn on the auto-deposit feature and set generous triggers, to make sure you will never run out of funds or enter the low funds status.

Offline History

The fact that an affiliate program often goes offline means that the merchant either runs out of funds or they make frequent changes to how they work with affiliates. Although changes are often good, publishers appreciate stability. Try to stay online for as long as possible by making sure that you never run out of funds and by planning major changes in advance and implementing them with as few disruptions as possible.

PPC Policy

Some publishers prey on merchants’ trademarks and check PPC policies to get an idea of how far they can go. Other publishers are worried that their cookies could be overwritten by unscrupulous affiliates or want to see how deeply merchants care about their brand and reputation. It helps to have a clear PPC policy in place so as to provide answers to both categories.

Affiliate Program Management

Unscrupulous publishers love unmanaged affiliate programs because they can promote the respective merchants as they please, without worrying about being removed, having commissions reversed, or receiving negative feedback. Truly valuable affiliates will stay away from programs that don’t have an active affiliate manager at the helm, because they know these usually fall prey to affiliate marketing parasitism and their chances of getting credit for the sales they may drive are slim.

Data/Product Feed

Some publishers, like PriceGrabber and Wish simply import the data feeds of the merchants they work with. Some affiliate networks, like ShareASale, allow publishers to filter data feed merchants. This creative is also a great way to showcase your products, so don’t hesitate to make it available to your affiliates.

Desktop vs. Mobile

Some publishers (apps & social media, for example) send a lot of mobile traffic. Others focus more on desktop traffic. When choosing which merchants to promote, publishers will ensure that those merchant websites have the ability to engage and convert the type of traffic they send. If 90% of your traffic and sales come from desktop devices, mobile-oriented affiliates may think twice before promoting you.

It is therefore important to ensure that your website is responsive and visitors will have a great experience on any device. Then, you can further influence these affiliate program statistics. One solution would be to recruit and engage more mobile-oriented affiliates. Another solution would be to invest more in mobile and social media marketing.

Final Advice on Improving Your Affiliate Program Statistics

As explained above, your goal as a merchant should be to build the best affiliate program statistics possible. This will help you appeal to all (desirable) publishers. If you’re just starting in affiliate marketing, it will take some time and effort, commitment, and perseverance.

It is important to note that this investment needs to be made on all fronts. The affiliate program is not a standalone part of your business. It cannot function in the long run if it’s not supported by a great merchant website, excellent products, impeccable customer service, and a consistent and coherent branding strategy.

As for the affiliate program, statistics don’t appear overnight. They are built through hard work, connections, and smart recruitment and activation campaigns by dedicated and reputable affiliate program managers. If you have trouble getting your affiliate program off the ground or you feel that its stats could be improved but you don’t know how to do it, we can help.

We have years of experience in building successful affiliate program statistics and driving performance, and we will gladly put our experience in your service. All you have to do is contact us and give us a few details about your brand and the problems you’re facing. The first consultation is on us — so you have nothing to lose!

Uncover The Importance Of Visual Merchandising In Digital Marketing

Uncover The Importance Of Visual Merchandising In Digital Marketing

Visual Merchandising- a term quite popular in the retail industry benefits the market by and large. If we take a wider look into the world, we can get an overview of how this practice proves to be a game-changer for every modern marketer. Naturally, you might ask how the approach can help you in your marketing campaign- given that you are not an owner of any retail store! Let us tell you, the importance of visual merchandising in your business niche is also undeniable. You can also use this practice to transform your entire business landscape.

In this blog, we have tried discussing the role of visual merchandising in digital marketing. Also, we have attempted to find out ways how to use visual merchandising in our day to day marketing campaign.

Take a look below to understand how you can attract and conquer your consumers and provide them with different experiences:

What is Visual Merchandising?
Visual merchandising is the approach especially taken by retail store owners to enhance the store experience for their visitors with appealing displays, decorations, signs and layout of space to grab the attention of the audience instantly. If you wonder whether such an arrangement is worthy or not, you need to understand that consumers judge an organization from different perspectives. According to consumer psychology, a person gets attracted to a company once he/she is satisfied with the overall view of it- both exterior and interior.

When we talk about retail stores, visual merchandising starts from the outside design of the store or its exterior presentation and proceeds towards the interior get up. It involves the ability to create window displays in fashionable patterns and colors, keeping up the recent design trends. This innovativeness aims to make customers believe that the store has what they’re looking for.

Visual merchandising mainly involves in-store traffic flow patterns and calculates the best places to put your displays, so that the greatest number of people gets to see them.

Now you can understand how visual merchandising effects in lead conversion. But when it comes to you, you are sure to get baffled.

Take note, the overall purpose of visual merchandising is to get customers to come into your brand and spend money. Visual merchandising hence includes how merchandise is displayed as well as what’s the store’s inclusive atmosphere is.

Benefits of Visual Merchandising
Now let’s understand how any brand can reap the benefits. First of all, you need to understand that visual merchandising is seen as an investment- not as an expense. Using this incredible marketing technique, you are sure to intensify customer experience and encourage them to buy from you.

Mentioned below are some of the benefits of visual merchandising:

  • With Visual Merchandising Increase Your Sales
    Visual merchandising is a tool which proves to be valuable for every marketer, whether retail or online. How? Market survey reveals 70% of the purchase decision is taken by people when they visit the website. And in this regard, the importance of visual merchandising can’t be denied. The tool helps to draw consumers’ attention positively and encourage them to buy. Needless to say, once they are satisfied with the experience, they are sure to come back to buy more at your company every time.
  • Create an Unforgettable Experience For Your Customers
    You have always wanted to create a memorable experience for your customers. Now it’s more than easy with visual merchandising. This is a process that gives you the scope to create a pleasant atmosphere for your audience. Using this fantastic & creative approaches, you can offer your visitors satisfaction, wonderment and brand identification.For example, when you use appealing color or lighting in your videos, it’s also a way to make your customers fall in love with your brand. Create an unmatched experience with an impressive video presentation. Encourage your audience to spend some more time on your website and let them purchase whatever they desire for.
  • Visual Merchandising Facilitates Brand Recognition Far & Wide
    One of the most important things every marketer desires is to find out what the customers are thinking about the brand. How do they perceive the product and services? You can’t deny the role of visual merchandising in this context.With the aesthetic presentation of visual merchandising influence people and let them conceive a positive perception of your brand.This way, you can add value to your brand and strengthen your brand’s presence in the market, further generating authority and trust.How can you use visual merchandising in your video marketing campaign? This is extremely interesting. We know videos are the best means to grab your audience’s attention with ease. So, you can incorporate visual merchandising in your video. Like retail store decoration videos also use the elements of color, lighting, product information and even sensory input. So using these vital elements, you can compose a masterpiece and translate your video marketing campaign into a genuinely engaging and more effective one.

Take a look at how to use the visual merchandising techniques in your video marketing.

Uncover the importance of visual merchandising in digital marketing:

1. Color Plays a Significant Role in Visual Merchandising
Videos, like every other visual medium, rely on the lavish use of colors to stand out. Needless to say, appropriate hues and shades are potent assets that add a meaningful touch to your visual representation. However, one word of caution- there shouldn’t be any erratic display. Otherwise, there’s the risk of generating a visually displeasing strife.

To put it in other words, you need to apply basic color theory to ascertain that your whole composition is both, harmonious and a treat to the eyes. The first rule of success, use base color in your video throughout your branding. This means your company’s colors need to be presented all through your videos. Experts are of the view that color acts as the driving force behind the attention. Needless to say, colors alone can be an outstanding asset to lead the viewer’s attention to your product or service.

2. Establish A Focal Point While Creating Video
Another essential of successful visual merchandising technique is always to keep a check on the displays. The main aim of the arrangements should make sure customers can see the highlighted parts and merchandise.

Although tricky, yet it is the most vital part of visual merchandising. You want your customers to be tied to your brand forever. Video marketing also works in this similar axiom. Create videos that reach the audience’s mind and tell them how the product is ideal for them.

For example, if you produce a video with a distracting animation in the background, your audience’s focus would move away from the main product. This means no one would understand what you want to convey.

Therefore while creating a video; it’s important that you maintain the focal point. Such an approach would take your viewers’ attention to remain where it should be.

3. Empty Space Needs A Wiser Approach
Visual merchandising usually has a space that often remains underutilized and receives lesser attention. In retail stores, it is the section in between the displayed merchandise and the ceiling. Experts recommend if you want to enjoy the optimum advantage, space needs to get filled up with useful content such as product information or signage.

Similarly, when you are into video marketing, here too, you need to translate the empty space with meaningful contents. The goal is what you leave out of the screen is as important as what you decide to include.

What we mean is that many video marketers tend to get passionate over the visuals of their content and unconsciously ignore the other equally important aspects of a marketing video, such as sound quality, narration, effects etc. These elements are also exclusive visual pieces of content that give life to your production. So, it’s vital to pay equal attention to all the crucial elements of your video- that aren’t necessarily visual.

4. Expose Your Viewers to the Maximum Amount of Merchandise
One of the vital rules of visual merchandising is to expose your customers to a wide range of your products. But how will you apply it in your video marketing? I know it’s a little counter-intuitive. Let me explain-

When you create a marketing video, you shouldn’t only cram out too much information. Decide creatively how much information is humanly possible to grasp usually in a short time (i.e., 2 mins). When there’s space around your subject, paying attention to fill up space innovatively will be praiseworthy.

The trick is to trim the fat and keep the lean and useful content will let you achieve your video marketing goal.

5. Narrate an Impressive Story Through Effective Visuals
Visual merchandising is all about storytelling; such as video marketing too. There’s no denying that compelling storytelling is the essence of marketing.

According to this axiom storytelling emphasizes on the fact that whatever your arrangement is, your production should address essential questions like “What’s in it for your customers?” Consider including sales-enabling displays and signage that goes along with your entire composition.

Concluding Lines
Visual merchandising is the easiest and proven way to attract people by stimulating their senses. It’s the approach to encourage people to remember your organization, whether by color, designs or sound. When it comes to digital marketing, using it oozes out several advantages. Using video marketing and with the dint of visual merchandising technique, your target audience will remember your brand and product forever.

If you want to know more such practical and innovative approaches & also want to get excellent content created to skyrocket your video marketing, visit AnimatedVideo.com Today and explore endless possibilities towards success.