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Rakuten Affiliate Network
Formerly Rakuten LinkShare
Formerly Rakuten MediaForge
Formerly DC Storm
House of Fraser (HoF) is one of the top five department stores in the UK. Having launched their online presence in 2007, website sales now account for approximately 11% of total revenue.
HoF were aware that their affiliate campaign was in decline, and it was apparent that the ‘last click wins’ payment model they had in place was part of the reason. The majority of commission payments were being paid to cashback and voucher code affiliates, whilst affiliates contributing higher up the funnel were not being recognized.
As a result of in-depth attribution analysis, Rakuten Attribution (formerly DC Storm) was able to demonstrate the contribution to sales made by all marketing channels, and it was clear from these insights that there was a large discrepancy between the valuation of individual affiliates and the commissions being paid to them.
Content affiliates in particular were not being recognized for their valuable role in the sales process with the commission model that was in place.
HoF wanted to align the interests of these publishers with the on-going affiliate programme, in order to stimulate campaign growth.
DC Storm suggested that the attribution model adopted by HoF could be implemented for making affiliate payments. This would ensure a complete alignment of commission payments linked to a valuation of the contribution to a sale.
HoF decided to take the bold step to completely align the attribution model to the valuation of their affiliate commission structure, which potentially could have raised issues in ensuring affiliates understood the programme, as well as how best to communicate it.
HoF took the project very seriously, engaging directly with their affiliates. They ran open days explaining the background to the new model, to ensure that affiliates were able to understand the change in the commission payment structure, and to demonstrate the improved alignment of objectives between content publishers and the retailer.
HoF have been able to reward valuable contributions from content affiliates that were not previously recognized. This is demonstrated by an 83% rise in the number of affiliate touch points awarded commission. No affiliates have left the new programme.
HoF now have a framework for doing better affiliate marketing, with a programme that pays everybody on what they can contribute.
The implementation of this model resulted in very little operational disruption for HoF and their affiliates, and is now being rolled out for more clients across multiple affiliate networks.