Our first company is a category leading beauty and skincare company. They are a multi-channel retailer that generates $50,000,000 annually.
Our second company in this case study is a men’s clothing and shoe retailer with catalog, brick and mortar retail locations and is an Internet Retailer 500 company.
Our beauty and skincare company had one year of stagnant growth and with the ever changing retail climate experiencing pressures from all sides, they needed to both increase their overall sales, new customer acquisition and market share, while spending less overall. The client’s program was 10 years old and had been managed by JEBCommerce since its inception.
Our men’s clothing and shoe retailer was concerned they were spending money on commissions for orders they would have gotten without the affiliate being involved in the customer’s path to purchase, and paying unnecessarily for orders where the affiliate partner provided little to no value.
Efforts in year 1 produced a 46% increase in ROI through the channel and a 31% overall cost reduction.
Our beauty and skincare client needed an advanced affiliate strategy that sparked sales growth and increased the efficiency of their spend. The team at JEBCommerce completed a comprehensive audit of the client’s program as well as a review of each partners’ marketing efforts on behalf of the client.
The team found that the affiliate partners fell into two main groups, the affiliates that were working intentionally to find, attract and close new and existing customers for the client and those that were doing very little work. The team also saw that the highest return on spend came from focused promotions and placements with a select group of affiliates. In order to leverage these findings, we reduced the publicly available base rate commission from 10% to 5%. This reduced cost of sales that were coming through with less direct and concentrated effort on the affiliates behalf. That reduced the overall budget needed to support those sales, allowing us to spend more on our more active and effective partners. We used that budget to laser focus on the placements and activities that had the history of performance and/or were most likely to produce increased revenue at an effective rate.
Efforts in year 1 produced a 46% increase in ROI through the channel and a 31% overall cost reduction. As an added bonus they also realized a 5% lift in revenue.
As sales continued to grow that year, the client realized an incredible $95,000 in commissions they did not have to pay
Our men’s clothing and shoe retailer simply needed a more advanced technology partner that allowed them more creative and sustainable commission rules. The team at JEBCommerce, after a full network review, re-launched the program on ShareASale and utilized their Conversion Lines and Leap Frog technology to ensure that affiliates entering the path to purchase after the customer placed their items in the shopping cart did not earn a commission. The assumption that was made was that those sales were not incremental and did not earn the commission.
As sales continued to grow that year, the client realized an incredible $95,000 in savings from commissions they did not have to pay that fell outside of their new commissioning rules. That re-discovered budget was then deployed into focused paid placements with affiliates that led to a 64% increase in YoY revenue.
The Bottom Line
As we’ve shown, it’s possible to boost revenue and increase ROI while reducing costs, but success requires a partner who is capable of creating and executing effective strategies. JEBCommerce’s expert teams were able to read the tea leaves, so to speak, and saw that there were real opportunities to increase the efficiency of spend and get even more out of the channel than was previously generated. Both of these clients continue to see gains each year with new and innovative strategies deployed on their behalf.