Your affiliate marketing conversion rate is the percentage of your leads that convert. In most eCommerce affiliate marketing cases, that means a lead turned into a sale.
Conversion Rate = Conversions / total traffic * 100
Conversion rate is the leading indicator of your affiliate program health. The average conversion rate differs between industries, with most falling between 1 and 3%. Generally, if your conversion rate is less than 2%, you have room to improve.
Even small improvements to your affiliate marketing conversion rate can yield big impacts on your brand’s revenue. These examples will increase your conversion rate and drive more revenue.
- Using more micro-influencers and regular customers
- Providing affiliate codes and FOMO discounts
- Giving creators Shoppable Storefronts on your eComm
1. Recruit more Micro-Influencers & Regular Customers into your Creator & Affiliate Programs
Including micro-influencers and loyal customers in your affiliate programs can significantly boost conversion rates. They bring unmatched authenticity, engagement, and can generate up to 22x more sales conversions compared to macro-influencers.
Micro-influencers and customers are brand champions
Micro-influencers and customers are much more likely to become brand champions with the right attention. In the user-generated content (UGC) they produce, the genuineness is clear. They document and share first-hand experiences that are extremely valuable to customers because the insights are hard to find elsewhere.
Micro-influencers and customers have targeted audiences
These creators often specialize in specific niches or industries, resulting in smaller but more engaged followers. These creators are also more likely to chat with their followers through comments and more, leading to higher engagement rates.
Creator engagement rates are the leading predictor of affiliate success. In fact, our brands constantly see the micro-influencer with 10k followers drastically outperforming the influencer with 1M followers, in pure revenue numbers.
At LoudCrowd, we encourage all of our customers to include micro-influencers and loyal customers in their creator & affiliate marketing programs. Our best-in-class automations make recruiting, engaging, and rewarding these creators easy.
2. Use Affiliate Codes and Timed Discount Campaigns
Discounts are eCommerce’s most important marketing tool
Discounts are the most important marketing tool for eCommerce brands; consumers love and EXPECT them. In fact, 88% of consumers say a discount or promotion makes them much more likely to become a first-time customer.
Expecting your affiliates to find new customers without the most important eCommerce marketing tactic is like shooting them in the foot and expecting them to run.
An A/B test with several LoudCrowd Ambassador Programs discovered that CVRs increased almost 10x after providing affiliates with a personal discount code.
Moreover, these promo codes are actually a great way to track attribution with exceptional detail. Segmenting by campaign or influencer group and looking at redemptions helps to understand the promotions that work best.
Timed Discounts and Flash Sales Drive Effective FOMO Buying
Timed Discounts are promotions offered for a limited time. They drive sales by creating urgency and motivating customers to impulse buy. This marketing tactic is also referred to as flash sales, hype sales, FOMO sales, and launch day sales.
The best influencers and content creators know how to leverage FOMO to drive sales. These creators successfully create FOMO / impulse buying by:
- Convincing their audience believe they are missing out on a pop culture trend without your product
- Convincing their audience that there is an exclusive discount or other opportunity that’s only available for a very limited time
You can boost your affiliate conversion rate with Timed Discounts in two ways:
- Let your creators know of any flash sales ahead of time so they can prepare content
- Use LoudCrowd’s shoppable Ambassador Storefronts with Timed Discount / Flash Sale functionality
LoudCrowd’s Ambassador Storefronts can be embedded with Timed Discount functionality. This directly equips your creators to own their personal flash sale and drive conversions 10x more with FOMO content.
3. Give your Creators Their Own Storefronts on your Site
Your social affiliates create content that ultimately drives traffic to your site. However, these leads often go wasted. Far too many conversion opportunities are being wasted on legacy shopping experiences that don’t compliment their traffic source.
Rather than send this “creator-centric” lead to a generic, product focused platform, Storefronts transform your eCommerce into a “creator-centric” platform. Each creator that is driving traffic receives their own customizable page (as opposed to a generic link) which includes their profile, content that they’ve created, and favorite products. A shopping experience that is tailored uniquely to their audience.
Ambassador Storefronts Automatically Congregate Powerful UGC
With LoudCrowd’s Ambassador Storefronts, approved UGC from Instagram and TikTok automatically populates on the page. This creates dynamic pages featuring the most up-to-date, and powerful, UGC content that converts exponentially higher.
In fact, there is a 100.6% increase in conversions amongst customers who interact with UGC.
Ambassador Storefronts Contain Bundles of Products Handpicked by the Creator
Creators with Ambassador Storefronts are able to pick the products featured on their page at any time. Creators then offer their leads targeted groupings of products that eliminate shopper confusion (where customers have to search around for the product they’re interested in).
Handpicked selections also drive up the AOV for consumers, since they want to shop all of the creator’s picks. Shopify cites that product bundles can increase AOV by 60%, so letting your creators build product bundles for you radically scales one of your most powerful conversion tools.
LoudCrowd’s Ambassador Storefronts bring together all the marketing tactics known to improve conversion rates:
- Available to any creator like your customers, micro-influencers, macro-influencers
- Incorporates affiliate codes and timed discounts
- Automatically populates UGC & hand-picked creator favorites
Giving all affiliates their own Storefront is a no-brainer for any brand looking to boost their affiliate marketing conversion rates.