The Importance of Tracking Metrics in Affiliate Marketing

Tracking Metrics in Affiliate Marketing

The global market is witnessing a rapid increase in the number of digital buyers. 16% of sales in the U.S. come from affiliate marketing. The secret of successful affiliate marketing lies in the proper use of tracking metrics.

The directed traffic to your website and the number of clicks is important to marketer and affiliate. So what makes these tracking metrics important?

As an affiliate, you can keep track of your content’s visibility and improve it. As a manager, it helps you keep track of your affiliate’s performance. You can monitor their performance and pay commissions based on converted leads. You can offer rewards to affiliates for higher sales.

Here are some of the common tracking metrics and their purpose include

1. Active Ratio

Used by affiliate managers, it helps you monitor your affiliates’ activity and rates them in the order of most to least active. You can utilize it to identify affiliates with the highest impression and conversion rates.

2. Commission Ratio

Commission ratio displays the commission earned by affiliates upon sales conversion. As an affiliate, you can utilize this ratio to identify the highest-paying marketers.

However, don’t get tempted by a high commission ratio. Some marketers offer a high commission on products that aren’t popular among customers and promoting them can be quite a challenge.

3. Click-Through

This metric shows the number of clicks on an affiliate’s page that directed visitors to the website. Marketers can keep a check on the number of converted leads.

Click-through rate is an effective metric to analyze your affiliates’ performance. A higher number of impressions than clicks is an indication of ineffective marketing performance by your affiliate. This means that the ad is being fetched from the website to your affiliate’s page, but he’s failing to direct the readers to your website.

4. Conversions

Not all clicks guarantee sales. Your website may achieve higher visibility, but it serves no purpose if the clicks don’t convert. This is where the need for conversion metric comes in.

It occurs when visitors perform the desired task. This may include signing up, buying a product, or filling a survey. Higher conversion rates lead to more commission for affiliates. Whereas, for a marketer, higher conversion leads to an increased chance of sales.

5. Gravity

Similar to the ‘cold’ or ‘hot’ product concept, this refers to the ratio of sales per product. High gravity refers to a product that’s rapidly purchased by customers. While low gravity refers to the opposite case.

It gives marketers an overview of their product status in the market. If a product isn’t doing well, they can revise its marketing strategy or cease its production.

6. Traffic

While high traffic doesn’t guarantee sales, it guarantees visibility. It refers to visitors that visit an affiliate’s page. So higher traffic boosts the organic ranking of your website. Your website has a higher chance of visitors if it appears on top of the search list.

Managing your affiliates is an essential step toward your business growth. LeadDyno allows communication between affiliates and marketers with its software. Our affiliate management software allows marketers to monitor their affiliates’ performance and converted leads.

Try our affiliate marketing software free trial here!

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