Here’s How Tracking Silos Lead to Waste in Your Affiliate Program

The beauty of digital marketing today is that brands can test a variety of ideas and use multiple marketing channels to figure out what works best for their brand and their audience. And just as with a solid investment portfolio, diversity is key. 

In marketing, we use diversity as an optimization tool so that we can invest our resources in top performing channels. The key to using multiple channels successfully is to be able to see how they work together as a unified whole, rather than as individual siloes. So, rather than looking at performance data from each channel individually, we want to look across all of our channels to see what is driving the most value. This is particularly true in affiliate marketing because measuring performance depends on how affiliate activity interacts with all of your other marketing channels. Whether or not your affiliate channel is succeeding in your eyes depends on what you decide to value and pay for – and accurate attribution depends on the ability to accurately track sales. 

The industry standard until recently has been to place the tracking of affiliate sales in the hands of third party tracking networks, even though it forces brands to assess the performance of each siloed channel individually, rather than holistically. It also causes a lot of attribution misalignment, as brands are often given results from the network that look different from the results reported in their own internal analytics. When multiple channels are claiming credit for a sale, it causes confusion, frustrated partners and loss of revenue due to over-attributed or double-paid affiliate commissions. This is not a good place to be.

Your attribution results on your terms: 

Where the industry is headed today is toward more transparency and more autonomy for brands. Key to this is a transition to server-to-server tracking that allows brands to take the power back into their court instead of relying on third party tracking to deliver attribution results.

The Pernix solution is a server-side attribution tracking software that fuses with a brands own internal analytics and then records those attributed sales into the affiliate platform. In this way, Pernix allows you to look at all of your channels holistically so that you can determine the best way to ascribe affiliate attribution. Instead of a third party reporting your sales in a silo, you can use Pernix to align your affiliate attribution method to the platform. The result is that partners only get paid for truly incremental sales. This creates a better ROI, which allows you to reinvest more revenue into incentivizing partners who align with your attribution method. With more incentive and support, you’ll attract partners who are good at driving value in the ways that work best for your brand.

 

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