If you want to get the most out of your affiliate marketing campaign, this article is for you. You can only grow your business without monitoring your affiliate efforts and evaluating the results, so that you can know what you are doing right and wrong. Let’s see what steps to consider and which to avoid when launching an affiliate marketing campaign.
High-growth companies monitor 33% more statistics than other companies to assess their marketing effectiveness. Companies without growth tend to look at simple benchmarks, such as the number of new customers acquired. These numbers could make businesses feel good, but they do not show the true image.
For example, say 30,000 new users visited your site this month. It sounds great. But it’s more important to know why they did it, what actions encouraged them to see your products, and how you should react. It is very important to understand which measures draw a realistic image.
To help you, we have collected the most useful measures and divide them into two main groups: quantitative and qualitative. We will start with the quantitative.
Click through rate
CTR measures the number of users who click on an ad or link to your site from a third party and leave the page to land on another. With the clickthrough rate, you can find out which types of links get the most clicks and measure the overall success of your affiliate advertising campaigns.
What is an average CTR? At the beginning of their career, advertisers should aim for a click rate of 2%. In fact, the average CTR on AdWords is 1.91% in all industries.
Return on investment
The return on investment is considered the most important measure of performance because it shows the profitability of a marketing campaign. In other words, the ROI tells you how much money you have recovered for every dollar invested.
With the return on investment, you can either evaluate the effectiveness of an investment you made in a particular affiliate program or compare the return on investment of a range of such programs. All you need to do is divide the benefits you receive from your investment by the cost of that investment.
Take the case of Mr # for an example. Mr # is the owner of a chat hotel. He decided to spread the word about his hostel and invested € 500 in an affiliate strategy. A year later, Mr # won € 600. So his return on investment is (600 – 500 €) / 500 € = 100 € / 500 €.
Return on investment is usually expressed as a percentage or ratio. So, we can express Andy’s return on investment as 1: 5 or 20%. Is it a good rate? Not enough. Many entrepreneurs target a ratio of 5: 1, which is considered strong for most companies.
Reverse sales rate
The reverse sales rate indicates the number of users previously credited to an affiliate who returns products purchased on your website for a refund. A reverse sale rate of 7% means that 7 out of 10 orders awarded to an affiliate are canceled.
It is common for companies to have a reversal. However, a reversal rate of more than 10% may indicate that affiliates are sending poor or poorly targeted traffic to your website, or that affiliates are exaggerating the features of your product to increase the number of conversions.
In most cases, you can not analyze the rate of reverse sales before joining an affiliate program, with the exception of the AvantLink and ShareASale networks . So, you must measure this rate periodically during your affiliate campaign and take preventative measures to protect your business.
Percentage of fraudulent orders
Last year, at least $ 7.4 billion was lost for fraudulent or invisible advertising, accounting for 56% of all ads. And that number is expected to grow to $ 10.9 billion by 2021. In addition, 37% of desktop ad impressions in the United States and up to 80% in Japan are fraudulent.
That’s why you’d better watch fraud rates from your affiliate campaigns for fraudulent orders to save your time and money. If you have noticed that fraudulent orders have increased with a particular affiliate or have even exceeded genuine orders, delete that affiliate as soon as possible.