Affiliate marketing is about making money rather than commission. Therefore we need to find an affiliate that helps in driving better traffic, high-value customers, new opportunities to drive sales.
1) Click traffic:
Click traffic is the number of clicks that we drive through the program over a period of time. This is one of the basic affiliate marketing KPIs to look at because it’s an important indicator of how well your program is growing. This is an outstanding way to narrow down on the most effective channels for your program.
2) Top Affiliates:
Make sure you record your top 10 affiliates who contribute the most revenue to your program each year. You should sustain your relationships with them, to not lose your partnerships with them. The best way to keep track of affiliates is by creating a unique UTM code.
3) The number of New Affiliates:
One must not ignore the number of new affiliates approved. It is an indication of the demand for the program. Always keep a close tab of the new affiliates. It helps to understand how much a program is in demand.
4) Percentage of New Customers:
One should always keep a close eye on affiliate marketing KPI to see which programs we should retire and which ones we should optimize.
5) Conversion Rate:
The conversion rate is the number of conversions divided by the total number of visitants. It helps you understand how many clicks drive to one conversion. One needs to make sure to check the change in conversion rates when a new promotion runs during special or festive days.
6) Average Order Value:
Average order value is one of the most essential affiliates marketing KPIs to track if you want to measure the profitability of your program as well as the profitability of each affiliate. It is the average amount spent every time a customer buys something. To determine your company’s average order value, simply divide total revenue by the number of orders.
7) Gross Orders vs Net Orders:
The differentiation between these 2 is another important KPI. Gross sales are the grand total of all sale transactions recorded in a particular period, without any deductions. Net sales are defined as gross sales minus all the voided orders due to return or cancellation.
8) Category Wise Performance:
If you’re running affiliates with different categories, you need to keep a close track of how each category is performing. This is one of the foremost affiliate marketing KPIs that can tell you what types of customers you’re attracting and how well are you performing.
9) Year-Over-Year Growth:
It is very essential to have a Year-Over-Year Growth. It’s highly propitious to do a year over year analysis to understand how the year performed when corresponded to the preceding year. This helps because monthly sales performance may have higher fluctuations when compared to year-over-year growth.
Regular tracking should be a part of your affiliate programs, as it is extremely necessary to know what works the best and needs to be carried forward.
Affiliate Marketing is important to your business and so is knowing the right tools to track your KPIs. Mindstorm is a ‘Hybrid’ Digital Marketing Agency in Mumbai that renders a plethora of social media marketing services such as digital brand strategy, development of channel strategy, content planning, copy-writing, creative design, social media management, reporting & analytics, etc. Mindstorm empowers brands with real-time, substantiated creative communications to effectively target social media marketing goals and make the brand touch new heights.