Jan 5, 2018
A Fortune 500 retailer drives significant, incremental revenue by leveraging CJ’s Affiliate Customer Insights to understand offline consumer behavior.
As a well-established industry leader, the retailer employed a full suite of data from across digital and offline marketing channels. It became critical, yet elusive, to accurately measure—at a single customer view—how digital was and could impact in-store performance. As the brand utilized more sophisticated marketing solutions, customer identification in the affiliate channel would play a central role. This would allow them to understand holistic and affiliate-specific customer behavior, which would uncover ways to drive incremental revenue—on and offline.
The retailer looked to scale their already mature affiliate program by driving incremental growth. To accomplish this, they first had to understand how affiliate partnerships contributed to the overall digital marketing mix, then understand how customers holistically engaged with the brand (all the relevant data points related to customer engagement). In order to better understand that customer engagement, they needed a solution that could analyze a large amount of historical transaction and customer data, identify their consumers across points of sale, and deliver statistically significant insights.
By leveraging Affiliate Customer Insights, CJ was able to map the retailer’s digital customer profiles, at an individual level, at a percentage in the high seventies. Affiliate Customer Insights allowed the team to measure all affiliate performance against the brand’s other marketing channels, including affiliate’s influence on the consumer shopping offline. The CJ team then diagnosed the retailer’s online-to-offline transaction data. They discovered that 10% of subsequent orders from customers that initially came through affiliate, were occurring in-store without targeted offline promotional campaigns.
By pairing the organic in-store activity with other established KPIs, CJ was able to calculate a dollar value and provide a forecasted revenue lift from running an in-store offer, featuring a discount off a minimum spend. The retailer approved a cross-channel promotion, and the CJ team used Affiliate Customer Insights data to select the publishers that would have the best combination of scale and performance.
As a result of consistently developing strategies leveraged from Affiliate Customer Insights data, the retailer and the CJ team launched a successful cross-channel promotional strategy, which translated into $34M in annualized incremental revenue. They also experienced a 66% YOY increase in ROAS by switching to an omni-channel marketing approach that emphasized strong performance.
The collective team has used these findings and other indicators to drive more efficient new customer acquisition, increased profitability through a more effective product mix, and a higher rate of customer retention. Affiliate Customer Insights continues to inform the teams’ strategic and promotional alignment across all of their marketing channels, ensuring continued incremental growth.
*Annualized incremental revenue based on return run rate.
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