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Measuring incrementality

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From time to time in my meetings with Advertisers/Agencies the ‘question of incrementality’ will come up. “What value are we really getting from working with reward sites like cashback publishers?”, they’ll ask. I’ll usually answer this back with another question: “ What is incremental to you?” There are plenty of ways affiliates can add value to your programme, whether it is through discount codes, cashback, PPC or social. The important thing is to have a clear strategy and an open-minded approach. An incremental sale can mean many things:

New customers What is a new customer? Do you class a new customer as someone who’s never purchased from you online – or someone who hasn’t purchased within the a specified time period? Your definition of ‘new’ will likely be influenced by your vertical as well as how long your company has been advertising online. Remember that having new customers does not necessarily mean more valuable sales. A customer who purchases from you once and never again is a lot less valuable to you than a repeat customer who visits you regularly via an affiliate.

Spending more Customers who spend more than they may have been considering initially can offer your brand incremental value – likewise customers who may be incentivised to buy product add-ons, where cashback sites rank as one of the highest overall for average spend.

Market share One of the great benefits of working with reward affiliates is that they’ll also likely be listing your main competitors – giving them a fairly unique view of your market share and how it may change over time. This also means greater accountability and measurability on the part of the affiliate, who can provide feedback on how your promotions are faring against your competitors’.

To summarise, there are lots of ways to measure incrementality, not all of which involve attracting new customers. Some of the best ways of finding incrementality involve getting the most from your existing customers, such as increased average order values, higher frequency of purchase, and upselling of additional products to retain customers.

Daniel Gross – CEO

(Based on an article from Performancein.com)

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