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Reward Affiliates Bring Strong Results

June 11th, 2007 · Comments

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Online visitors delivered by reward-based loyalty websites are more valuable to retailers than standard traffic, according to recent research undertaken by the UK’s largest cashback Web site, GreasyPalm.

GreasyPalm took data from affiliate networks, advertising agencies, and retailers direct to analyze the key performance indicators of their incentivized visitors versus non incentivized traffic.

According to the data, incentivized visitors were seen to have a much greater propensity to buy than that of their non-incentivized counterparts. Earnings per click across a variety of brand name retailers was shown to be far increased with Dorothy Perkins seeing a 183% uplift and Comet seeing a 309% uplift.

The strongest evidence of increased conversions from incentivized visitors was in the area of online insurance. A leading car insurance brand saw a 512% increase in EPC, GreasyPalm’s incentivized traffic performing at £5.32 per click compared to the average visitor being worth £1.04 per click.

Further beneficial effects of incentivized traffic were demonstrated when looking at data for the average order values across a range of retailers (see chart below).

Greasy Palm

Marketing Director of GreasyPalm, Neil Durrant comments, “The results of our research show that websites like GreasyPalm direct high value traffic to online retailers and, as such, are an integral part of the marketing mix. Retailers working in conjunction with reward sites tap into loyal and motivated shoppers benefiting immensely from their association.”

“The quality of incentivized traffic is unsurpassed, which explains the growth in the online rewards sector since we started with the UK’s first cashback site in 2003. This growth has caught the attention of traditional media owners for whom we are now building white label solutions. They too can now take advantage of online shopping and the exceptional member value delivered by highly motivated shoppers.”

More information on GreasyPalm at http://greasypalm.co.uk/.

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Tags: Affiliate Stats

Viewing 2 Comments

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    This is great info - wondering if everyone here feels this data mirrors US shoppers and US results? Thoughts?
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    • v
    The numbers correspond to numbers of existing customers of a site and do not surprise me at all. They just confirm what everybody who is concerned with it already knows.

    The more important question is, how are the numbers, if you distinguish between new and existing customers and run the same numbers again plus provide the number, how much percent of the overall traffic were new customers, existing customers or unknown (visited the site without logging in or buying anything to determine if the visitor is a returning customer or not).

    This is important to assess how much business you gain from the rewards sites and what business you would potentially lose, if you DO NOT work together with reward sites.

    Businesses with tight margins need to know that to make an educated decision if rewards affiliates costing them more commission fees than it is worth for them. Sure, they lose some business if they don't work with any rewards site, but some business is also not good business and not wanted and you are better off without it.

    This statistic is self serving and does not answer the real questions. It's a good tool to pitch their business and probably the reason why they did it in the first place. Don't trust any statistic you have not skewed yourself :).
 

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