Optimise and grow the existing affiliate programIncreased revenue by 32% and average order value by 7%
The American retail chain specialises in music and pop culture inspired fashion. House of Kaizen partnered with Hot Topic manage their affiliate marketing program.
- Segmenting and managing affiliates beyond contextual relevance and content driven categories; and
- Growing the revenue contribution from low transaction volume affiliates and partners while not increasing average cost of sale.
Our strategy was twofold;
- Prepare for peak seasons through testing;and
- Capitalise on unique product lines to grow volume during off-peak months.
At a tactical level we tailored and segmented Hot Topic messaging, offers and commission tiers for each affiliate. This approach ensured we not only grew high contributing super affiliates, but high potential affiliates with large audiences contributing low monthly revenue.
How we did it
Leveraged purchase and time of the year insight
We developed offers, structured commissions and secured placements through careful and consistent testing outside of peak purchase periods.
We applied social media word of mouth data to identify opportunities outside of peak periods including conversations on upcoming tours of specific music bands and artists.
Applied on-going testing to identify conversion drivers
We performed testing during off-peak months determined what offers converted best while keeping average order size high. Placement testing established where Hot Topic would glean the highest return.
We tested placements with sites that performed well across other clients, but had room to improve for Hot Topic.
The combination of offer and placement testing led to a 53% revenue increase during Back to School and a 24% revenue increase during the holiday season.
Implemented a product specific strategy for affiliate recruitment
During off-peak months, we leveraged Hot Topic’s exclusive and unique product lines to recruit vertical sites and create mini peak seasons throughout the year.
Capitalising on unique, timely products increased volume 31% year over year during typically non-peak months.
- Increase revenue 32% year-over-year
- Increase sales 24% year-over-year
- Increase traffic 36% year-over-year
- Increase average order size 7% year-over-year
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