Using the "same store" concept from retail in affiliate marketing

Posted August 31, 2010 in ,

retailOne of the things I learned from working at and with several large, national, multi channel retailers, was the concept of same store sales.  Now, don’t get me wrong, this isn’t a complex metric that I came up with, it’s only something I have found useful when managing affiliate programs.  Whether retail programs, lead gen programs, business-to-business programs or others, it comes in quite handy.

Same-store performance is a concept used by retailers and investors to evaluate a retail company’s performance.  It compares sales of stores that have been open for at least a year in that organization.  From investopedia:

This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of new stores. This analysis is important because, although new stores are good, a saturation point–where future sales growth is determined by same store sales growth – eventually occurs.

So why should you care?  As an affiliate manager it is important for you to know where your sales are coming from, how your current partners are performing and what percentage of your sales growth comes from new partnerships.  And like the description above, at some point, your program’s sales growth will be coming from your current affiliates as your program becomes saturated with all the appropriate affiliates.

You need to be able to measure if your program is growing by new partners, or existing partners.  Your plans, promotions, offers and strategy will be dependent on this measurement and will change as you move from new partner growth to current partner performance growth.

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About the author

Jamie Birch

Founder/CEO

Connect with me on: Skype
Jamie is the owner and principal of JEBCommerce. His extensive Internet marketing experience includes all facets of online marketing: email, paid search campaigns, customer retention programs, and much more. This wide range of disciplines has enabled Jamie to excel as a business leader and JEBCommerce to realize a great level of success for its clients. Jamie cut his “affiliate marketing teeth” managing affiliate programs for many well known companies before spending several years at Coldwater Creek, a Top 5 nationwide women’s clothing retailer. While at Coldwater Creek, Jamie established and managed affiliate campaigns, email campaigns, and SEO campaigns – an opportunity that allowed him to develop many of the proven processes JEBCommerce successfully employs today. In recognition of his professional leadership, the affiliate marketing industry has consistently nominated him for Annual Pinnacle Awards over the years. In addition to individual accolades, JEBCommerce is gaining momentum within the Internet marketing industry and is experiencing positive, exciting growth. This is a direct result of Jamie’s positive leadership, integrity, and earned respect – from his clients and industry peers. Need a speaker for your next event? I can do that, too!