You are a Senior Consultant of Affiliate Marketing Pro, a boutique consultancy firm that helps companies optimize their affiliate marketing operations. One of your customers is frustrated because revenues from this channel are flat (to run the analysis, type "Watch retailer " in the app). You have been called to analyze the situation and suggest actions.
If you can't wait, here is a quick preview of the findings.
Affiliate sales stayed flat in the aggregate, but in fact can be broken down in three blocks:
- Top, Direct Payment, Standard Offer, Online Purchase Affiliates with Sales up by 2.5M (+19%)
- Other Online Purchase Affiliates with Sales down by -2M (-24%)
- Not bundled Offline Affiliates with Sales down by 0.45k (-40%).
Overall the number of purchases increased - especially for Non Subscriber Standard Offer Affiliates - but this was offset by a decrease in the average ticket size.
Affiliate Sales are essentially flat.
"Lost" volume (combinations of dimensions present in the first year but not in the second) explain 1.1M loss, offset by the growth of revenues tied to combinations present in both years. No impact of "New" combinations.
While aggregate values did not change, there was action at a more granular level. Values in % of total.
Amounts and units were practically identical in the two periods.
In terms of Type, Retain Affiliates performed the best.
The Top Affiliate Segment performed best.
Gold and Silver Affiliates performed best.
Not Active Affiliates performed best.
Low Tenure Affiliates performed poorly, Top performed OK.
Non Subscriber Affiliates performed very well.
Direct Pay Affiliates performed best.
Online Affiliates did better than Offline Affiliates, that lost significant sales.
Standard Offer Affiliates did better than Loyalty Offer Affiliates.
Bundled Offer Affiliates did better than non-Bundled Offer Affiliates.
VARIABLE DIMENSION VARIANCE ANALYSIS
Variable dimension variance analysis helps understand better where the "action" is:
- Top Affiliates, with Direct Payments, purchasing Online, with a Standard offer increased Sales by almost 20%.
- Other Online Affiliates did not fare well, and lost almost a fourth of sales.
- Not Bundled Offline Affiliates lost 40% of sales.
- Rest of Offline irrelevant.
FIRST ROW RESULT DETAIL
Here is the drilldown and the breakup of the first result row cohort (+2.54M) along the different dimensions. Values in $.
SECOND ROW RESULT DETAIL
Here is the drilldown and the breakup of the second result row cohort (-2.02M) along the different dimensions. Values in $.
THIRD ROW RESULT DETAIL
Here is the drilldown and the breakup of the third result row cohort (-0.452M) along the different dimensions. Values in $.
DRIVER IMPACT ANALYSIS
Overall, the number of purchase acts increased but the value of each purchase act decreased in the same proportion.
Checkouts increased for Non Subscriber Standard Offer Affiliates and fell for Franchisees. The impact of reduced average tickets values on Online Affiliates was -700k.