Affiliate marketing is integral to retail’s digital strategy, providing unique insights into the customer journey. This thought leadership piece explores how affiliate marketing helps retailers understand and optimize the customer journey, leveraging popular frameworks and academic sources for a comprehensive analysis.
The retail customer journey comprises a few stages: awareness, consideration, decision, purchase, and post-purchase. Each stage involves various touch points influencing customer behaviours to purchase a project. Understanding this journey and how customers engage and interact online is crucial for delivering personalized and effective marketing strategies.
Affiliate marketing is a performance-based strategy where affiliates promote a retailer’s products or services, earning commissions for sales or leads generated. This approach provides retailers with valuable data and insights at each stage of the customer journey which can help them optimise their site, their product search bars and other factors that influence the customers learning journey before they make a final purchase.
**83% of affiliate customer journeys involve only one publisher. – CJ.com Survey
Therefore, affiliate managers need to make sure that their programs contain affiliates that fit in every purchase phase within the customer purchase journey of buyer awareness funnel.
Awareness and Discovery
Affiliates play a crucial role in the initial stages of the customer journey. By leveraging content creators, bloggers, and influencers, retailers can reach new audiences and increase brand visibility. Affiliates introduce products to potential customers through engaging content, advertisements, and social media campaigns. This stage is vital for generating interest and driving traffic to retailer websites. Think about sites that showcase the product, usage or demonstrations.
Consideration and Evaluation
During the consideration phase, affiliates provide valuable information that helps customers make informed decisions. Detailed product reviews, comparison articles, and demo videos are typical affiliate contributions that aid in evaluating different options. This content is particularly influential as customers weigh the pros and cons of potential purchases. Think of Reviews, Recommendations, and product comparison sites.
Decision and Purchase
Affiliates are instrumental in the decision-making process by offering incentives such as discount codes, special offers, and call-to-action links that drive conversions. By presenting these offers at the right moment, affiliates help to convert interested prospects into actual buyers. Tracking tools and analytics allow retailers to measure the effectiveness of these strategies in real-time. Think about loyalty and offer based sites, email affiliates who know what their customers need and want and can influence them to purchase.
Post-Purchase Engagement
After the purchase, affiliates continue to add value by encouraging customer feedback, promoting product usage tips, and fostering brand loyalty. Follow-up emails, customer satisfaction surveys, and loyalty programs facilitated by affiliates help to maintain engagement and drive repeat purchases. This ongoing interaction is crucial for building long-term relationships with customers.
17% of affiliate customer journeys involve more than one publisher, resulting in higher average order values, regardless of the publisher type or publisher position in the path-to-purchase. – CJ.com affiliate study
The CJ Affiliate study highlights the importance of utilizing multiple publishers to maximize reach and impact. Retailers that engage with a diverse range of affiliates can tap into different audience segments, leading to a more comprehensive customer journey analysis. Multi-publisher strategies not only enhance brand visibility but also provide richer data for optimizing marketing efforts.
While some affiliates may drive quicker conversions, they typically engage customers at the final stage of their journey. This can create challenges in evaluating their true value. It’s important not to rely solely on discount code usage as the primary metric for affiliate success. Content creators who enhance brand awareness early with high-quality, wide-reaching content are equally essential to your marketing strategy as those providing discount codes at the conversion point.
Affiliates can generally be categorized into three distinct roles:
By understanding and leveraging these roles, retailers can maximize the impact of their affiliate marketing strategies across the entire customer journey. This approach ensures a balanced and comprehensive evaluation of affiliate contributions, recognizing the importance of each role in driving overall sales and customer engagement. Below we outline what retailers could do to improve their performance with each Affiliate role: