Performance metrics that every retail affiliate should track

posted by Tom Rickey - Publisher Account Director22 Mar 2013

Working as a retail affiliate opens up a world of opportunity.  However, it requires a strict focus on your conversion performance in order to make it work for you.  The breadth of products on offer with retailers such as M&S, Sainsbury’s, John Lewis and Tesco provides affiliates with a huge product choice,  which naturally helps to increase the chances of getting sales from the traffic you are driving.

A massive product range, while it gives lots of choice, can be a blessing and a curse, therefore you need to continuously monitor your conversions in order to optimise your product portfolio based on the best performing products. To do so, you should closely monitor and improve the following performance metrics:

Cost Per Acquisition (CPA)

This gives you an idea before you get started on your potential earning power, but a high CPA doesn’t necessarily mean more revenue at the end of the day.  If you start driving a good volume of sales, you might be in a position to command a higher CPA.

Conversion Rate (CV)

The number of your users who actually purchase when they arrive at the merchant site is key to your success.  Using a product feed to send users deeper into the site and displaying offers on your site can help your traffic to convert better.

Average Order Value (AOV)

This shows you how much your users are spending on the client site on average per transaction.  Increase this by promoting high order value products from a feed on your website, and stretch spend offers (e.g. save £10 when you spend £100) can also help.

Earnings Per Click (EPC)

This is the blended results of all of the above.  It is your order value divided by the number of clicks you have sent.  This is ultimately the most important metric as it gives a value to your traffic and is the best way to compare one program to another to know where you should be sending your traffic.

Working as a retail affiliate, while it does have plenty of room for ingenuity, is really a numbers game.  You are most likely investing a lot of money in a strong user base and you need to make sure you are optimising the performance results on that traffic when it leaves your site.  If you closely monitor and optimise by the metrics above, you will soon be seeing the benefits in your profits.

Tags: News (166), Publisher Support (18), Retail (56), Fashion (57)

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