If you have a product and want to sell more, you can offer promoters a financial incentive through an affiliate program.
Affiliate marketing certainly has the potential to drive sales and generate significant revenue. More than that, it is a highly cost-effective lead generation tactic where you pay solely for performance.
New customer acquisition is a key metric for many merchants and the affiliate channel has demonstrated its ability to drive new customers
With the continued growth of cashback and voucher code sites along with specialist niche sites, the affiliate channel provides the perfect platform to extend brands to new purchasers.
Still doubt to whether or not to use affiliate marketing, check out these interesting statistics:
81% of brands use affiliate marketing to capture customers’ attention,
engage with existing customers, and generate more sales.
Affiliate marketing spend in the US is expected to rise to over $6.82 billion by 2020 at a compound annual growth rate of 10%.
79% of marketers leverage affiliate marketing to drive conversions and
increase purchases. 83% of them use it to increase brand awareness, and 79% of them use it to engage existing customers.
How the process works :
A retailer operates his store in market and generates a significant number of sales per month through the use of affiliates. In a highly competitive market, acquiring new customers as well as establishing a carefully thought out retention strategy is key to increasing sales.
In order to target new customers, they rely on their extensive affiliate base, and engage with a variety of affiliate types, extending their reach to consumers that they may not have previously had access to.
The customers conversion through Affiliate Marketing would be in 3 scenarios :
- Engage with new consumers whilst maintaining established relationships with existing ones. This has allowed them to come in with a low cost of new customer acquisition through the channel.
2. Where new customer acquisition is a key factor only paying commissions for new customers (those buyers that have not purchased within the previous 12 months).
3. Reward affiliates for delivering to their KPIs, they have a commission structure that pays higher amounts for sales generated by new customers.
Affiliate Marketing Strategies to Grow Your Brand
1. Choose the Right Affiliates
When choosing an affiliate to help you with your product promotions, check these are the points important to ensure that your efforts aren’t in vain.
They have a good rapport with their audience
Their audience might be interested in your products or brand
They have a good following, site ranking, views, engagement, and authority
2. Attract Sales with Coupons, Deals, and Promotions
Leveraging coupons and deals is one of the best affiliate marketing strategies to boost sales. That’s because many consumers love the savings power of coupons.
They often search for discount vouchers on various coupon and deals sites before shopping for any product.
Coupons work best in markets that are highly competitive such as food, beauty, travel, or gadgets. However, you need to manage them well as an extravagant discount offer might simply eat into your margins.
3. Leverage the Power of Niche Influencers
Many brands choose to work with a large number of social influencers and bloggers in their niches. Influencers have more authentic relationships with their followers.
They can effectively get their audience to trust your brand and convince them to use your products or services.
Influencers may not send you huge amounts of traffic compared to coupon sites. But the audience they send is targeted and more likely to be interested in your product.
Thus, you can boost your conversion rates with effective affiliate partnerships with influencers.
You need to analyze various metrics to see if an influencer is fit for your affiliate marketing strategies. Important factors to be checked that contribute to whether or not an influencer is a good fit for your affiliate marketing program.
Follower growth over time
Alignment with your brand’s values and niche
4. Build a Robust Affiliate Network
Instead of tapping into various affiliate networks, build your own. It can be really difficult to recruit your first few affiliates. But expanding your affiliate network is comparatively easier.
To attract affiliates, you should follow a clear, to-the-point approach. Provide your potential affiliates with all of the necessary information such as what to do, how it works, and the commission you’ll pay.
Track their performance, and analyze the lifetime value of the customers they bring to your brand.
5. Leverage Affiliate Promotions From Multiple Sources
Instead of focusing on just Instagram influencers or coupon sites, spend the time to reach out to your audience through affiliates from multiple sources.
You can test a variety of affiliate marketing strategies to see which audience responds the best and is the easiest to reach.
Some sources to leverage affiliate promotions include Product Review Blogs, Email Marketing, Webinars, Youtube Videos.
Using multiple platforms can help you drive the best results from your affiliate marketing strategies. This can also help you analyze the platform where your audience is most engaged on.
Optimize Your Product Pages for Conversions
Many brands invest in affiliate marketing strategies and expect their affiliates to drive conversions on their own. You can’t rely completely on your affiliates and sit back to watch sales come in.
Affiliate marketing can help you to drive interested consumers to your product pages. But it’s your job to make sure that they buy your product once they reach there.
If you want to generate more sales, you should deliver a good customer experience to them. For this, you need to make sure that
Your site loads fast
You provide sufficient information to help your customers buy the product they want
You display impressive, high-quality product photos that grab your visitors’ attention
Your product descriptions include engaging copy that speaks of your brand and tells them why they should buy from you
You should clearly feature customer reviews to build trust
Optimized product pages can give a boost to your affiliate marketing strategies and effort. They can help you retain more customers.
In fact, you can also use your product pages to upsell and cross-sell relevant
Moreover, 38% of marketers consider affiliate marketing as one of the top customer acquisition methods.