The global market is witnessing a rapid increase in the number of digital buyers. 16% of sales in the U.S. are contributed by affiliate marketing. The secret of successful affiliate marketing lies in proper utilization of tracking metrics.
The directed traffic to your website and the number of clicks is of significant importance to marketer and affiliates. So what makes these tracking metrics important?
As an affiliate, you can keep track of your content’s visibility and improve it accordingly. 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 reward incentives to affiliates for contributing higher sales to your business.
Some of the common tracking metrics and their purpose include:
1. Active Ratio
Used by affiliate managers, it facilitates you in monitoring your affiliates’ online activity and rating 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 challenging.
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.
Not all clicks guarantee sales. Your website may achieve higher visibility, but it serves no purpose if the clicks aren’t converted to sales. 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 form. Higher conversion rates lead to more commission for affiliates. For a marketer, higher conversion leads to an increased chance of sales.
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 market. If a product isn’t doing well, they can revise its marketing strategy or cease its production.
While high traffic doesn’t guarantee sales, it guarantees visibility. It refers to visitors that visit an affiliate’s page. Higher traffic boosts the organic ranking of your website. Your website has a higher probability of visitors if it appears on top of the search list.
Managing your affiliates and keeping track of their performance is an essential step toward your business growth. LeadDyno allows communication between affiliates and marketers with its affiliate marketing software. Our affiliate management software allows marketers to monitor their affiliates’ performance and converted leads.