This presentation is from Affiliate Summit East 2016 (July 31-August 2, 2016 in New York City, NY). Session description: This session will focus on defining ‘incremental revenue’ within the affiliate channel, including determining effective segmentation, multi-attribution tracking and properly compensating affiliates.

1. Personalization +
Incremental Revenue
Stephanie Harris, CEO of Schaaf-PartnerCentric

2. What is Incremental Revenue?
Revenue that can be attributed to ‘new’ sales, meaning sales from
shoppers that were not already planning on shopping at that
particular merchant.
Ability for an advertiser/business to successfully generate
additional revenue/margin by adding a specific and trackable
marketing channel or campaign.
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3. What is Incremental Revenue?
Revenue we wouldn't have otherwise gotten had we not
engaged in a certain activity.
Providing additional services/value to your customer in
ways that will increase shopper loyalty and long-term
relationships with the customer that can be personalized &
capitalized on throughout the lifecycle of the customer.
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4. Why is it Relevant?

5. Problems with Traditional Affiliate Model
40% to 90% of an affiliate program’s revenue is
attributed to coupon affiliates
The advertiser may pay multiple times across
channels for the same sale
The affiliate adds minimal to negative value to the advertiser’s
traffic after discount is applied, affiliate is paid, and tracking fees are paid
Affiliates that drive incremental revenue are not properly leveraged or
compensated
Content affiliates often “lose” in this formula
The value of the affiliate channel as a whole comes into question

6. Limits in Managing Incremental
Revenue in Traditional Affiliate
2nd Purchase Path
3rd Purchase Path
1st Purchase Path
Mobile Web Mobile Web
Mobile Web
Mobile Web
Web Web
Web Web
Web
Chat
Chat
Chat
Email
Email
Email
Social
Social
Cart
Cart
CartAffiliate
Affiliate
Affiliate

7. Our Viewpoint
The true measure of incremental revenue needs to
come from personalization.
Identified as
“Last-Minute
Traveler” and is
emailed about
upcoming events.
“Foodie traveler” bought
ticket in conjunction with Food
& Wine fest, gets free drink
coupon.
“Family Travelers” paid
more for their tickets to
be able to sit next to each
other on “first come, first
served” flight

8. So, what’s
personalization?
"Personalized marketing,
or one-to-one marketing, is a
marketing strategy by which
companies leverage data analysis
and digital technology to deliver
individualized messages and
product offerings to current or
prospective customers."
[
9 pm mobile
search peaks

9. What is an area of opportunity in
personalization + incremental
revenue?
Curated collections of personal recommendations based
on trust.
Merchants devising a strategy with select affiliates with niche or
specialized offerings/audiences that can be nurtured and grown
beyond standard 'affiliate' partnerships.
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10. How do others
personalize?

11. How do you apply this
to an affiliate program?
Imagine a world where
...microsites drive revenue
on specific deals
...customized deals for
affiliates are relevant to
consumers based on their
shared history

12. Technical
Solutions
Track additional events that
contribute to incremental sales.
Track all channels in conjunction
and set attribution logic around
these channels.
Find untracked areas of
interaction with customers and
develop the means to track and
quantify that interaction in line
with other attribution logic.
expose data to affiliates in a
1:1 relationship

13. What the Future
Looks Like Efficiency is gained as
advertising occurs at critical
points.
Data flows freely between
publishers and merchants to
allow instant personalization to
all consumers.
The value of different degrees of
personalization is recognized,
and investments are allocated duly.

14. Thanks!
Stephanie Harris,
CEO of Schaaf-PartnerCentric
stephanie@schaafpc.com
www.schaafpc.com

15. Q&A