The fashion and home sectors are evolving rapidly and have taken advantage of digital marketing tools to support prospects in their buying journey. The latter has become more complex in recent years due to the multiplicity of channels and contact points. The challenge for brands is therefore to be present throughout this journey ( Customer Journey ). To do this, they must offer a quality customer experience and deploy the marketing levers to convert their prospects into customers. Membership addresses this issue.
Affiliation is a lever aggregating different affiliate profiles and marketing techniques. In the fashion and home industries, many advertisers use it to drive traffic and sales to their website. The strong point of affiliation is that it guarantees a return on investment to advertisers unlike many other digital marketing models. One euro spent on affiliation generates 15 euros in revenue for the merchant (Source CPA).
What is Affiliate Marketing?
Affiliation is a web marketing technique by which an advertiser offers a third party (or affiliate) to promote its products or services in exchange for compensation. It comes down to the advertiser having a sales team capable of driving traffic and sales to their website. There are several types of affiliates, each with their specificities and role in the customer journey. Thus, the affiliate networks of affiliate platforms include content sites (blogs, webzine, forum), emailers, price comparison sites, couponing and cashback sites, retargeting agencies, SEM, etc. .
Each sale generated by an affiliate is identified using a tracking code installed on the advertiser’s site. This makes it possible to remunerate the affiliate according to a remuneration base fixed at the launch of the campaign. The affiliate will be paid either on a percentage of the turnover generated, or on a fixed amount.
How can affiliation benefit advertisers in the fashion and home industries?
The main benefit of affiliation for fashion and home brands is above all an increase in their sales. For a well-managed program, affiliation can represent up to 25% of the turnover generated by the advertiser’s website (Source CPA). Once the program is well established, affiliation can also help develop brand awareness. Thanks to content sites, advertisers have the opportunity to recruit ambassadors for their brand and establish their image with a quality audience. Today we know the importance of prescribers in the worlds of fashion and the home. Affiliation is a quick way for these brands to reach and work with these web influencers.
What are the costs?
The costs of launching an affiliate program depend on the objectives set by the brand and the remuneration models practiced. Advertisers can indeed choose to pay their affiliates per click, impression, lead or sale. Affiliate platforms practice different pricing which essentially varies according to their size and specialization. Most charge a campaign setup fee. They are then remunerated by applying a percentage on the sales generated by the affiliates of their network.
For the fashion sector, the commissions paid to affiliates vary between 4% and 12% of the sales generated. Can that of the house, they are between 4% and 9%. This percentage is contractually defined at the start of the campaign and may change over the course of the campaign. It is established according to several criteria (brand margins, sales targets, etc.). The goal is of course that the partnership between the advertiser and the affiliate is a win-win partnership.
Affiliate Marketing therefore makes it possible to respond effectively to all the marketing and commercial objectives of brands. Properly implemented, it provides a real experience to consumers. It creates value for brands and generates incremental sales essential to the development of merchants.