Save ___ this week only!

With the economy in flux, you, me and most other consumers out there are looking to save an extra buck here and there.  This means more coupon-ing, more price comparison… especially with the Holidays coming, every dollar counts!

Affiliates are bringing a steady stream of traffic to your site, and you want to add some new coupons for the holidays, but what kind?  Dollar off?  Percentage off?  Free Shipping?  Shipping Upgrade?  There are endless choices, but not all may be right for your customer base.  Here are four quick questions to ask yourself when deciding which promotions to run through your affiliate campaign:

1.  What are your competitors doing?

One of the most important rules in business is to know your enemy.  By being aware of the promotions your top three competitors are running, you can remain competitive. Also, if you are fervent with your efforts, many times you will find that they use the same promotions from year to year, allowing you to be ahead of the game for next season.

2.  What has worked historically?

Over time you may have used Dollar-off or Percentage-off coupons… perhaps some free shipping upgrades.  Evaluate the success of these campaigns, and often times you will see that one type of promotion works better.  Also, you may notice that certain price points are more effective.  For example, 10% off may work rather than $10 off $75, but $10 off $100 might be even more effective.  Know what works for your customers, based on your average order value, minimum for free shipping, etc etc.  Sometimes, if it isn’t broke, it doesn’t need fixing.  Go with what works.

3.  What is your overall margin?

Often I have merchants tell me that for some items their margin is 50%, while only 15% on others.  Be conscious of that  If you average margin is 30%, and you are paying 10% in commissions, be constantly aware of what that coupon offer will do to your bottom line.  If you lose a bit on commissions for a smaller margin product, but make up for it ten-fold on a more profitable item… the commission and coupon are justified.

4.  What kind of custom deals can you offer some of your top affiliate partners?

It’s all about the benjamins… ok, so not quite.  But, it is about providing some exclusive offers to your Super Affiliate partners.  Special product deals, exclusive percentage-off coupons, etc etc… they can all make a difference during the holiday season.  Review data to determine which affiliates are performing best, who has the most potential, and distribute discounts accordingly.

Most importantly, get your name out there.  If you aren’t offering any consumer incentive, would you buy from your store?  Why?  Make it worth their while!