5 Affiliate Marketing KPIs You Need to Monitor
KPIs are integral to every business, and affiliate marketing is no different. Let us look at the most important affiliate marketing KPIs you should be paying attention to.
The parameters help you identify how your business is performing in different areas. Understanding the key performance indicators (KPIs) is important for every business to track its progress.
The definition of a KPI depends on an individual business. For some businesses, brand recognition is the focus, while others want a specific action from the user.
So the key performance indicators would be different for each one. Most KPIs are numerical in affiliate marketing.
What is KPI in Affiliate Marketing?
KPI is a measurable value that indicates progress in a business goal. It is a metric to measure the specific objectives of a campaign. These metrics are tracked consistently while the campaign is running. KPIs can be used at numerous levels to track progress. The KPIs are tracked, measured, and analyzed to enhance the outcomes.
Most Important Affiliate Marketing KPIs
Click traffic is one of the main indicators of whether your program is growing. The number of clicks is an indication of the level of exposure to your product. You can also compare clicks over a period of time to see how the new partnerships are affecting your business.
Depending on the clicks attracted by different affiliate partners, you are most valuable. A high number of clicks and low conversion can hint at the underlying problem with your program or website. As the number of clicks increase the conversions should also increase.
Cost Per acquisition
CPA is an important metric for tracking your marketing budget. It is the cost spent on acquiring a customer via a specific channel. The cost per acquisition depends on a number of variables.
Divide the total cost spent on a specific channel by the number of customers acquired to calculate the cost per acquisition.
CPA can be a helpful metric to decide the effectiveness of a campaign. It is a measure of the success of various advertising channels. The most common actions are registrations and sales.
Average order value
Average order value is a key metric for understanding customer purchasing patterns. This is a transactional metric with an emphasis on individual orders.
It can be one of the most effective methods to increase revenue. This metric is also helpful in determining the pricing strategy. AOV can be improved with minimum purchase, discount, shipping, and coupons.
It can be critical for calculating conversions and revenue. AOV is a critical KPI for both online and offline sales. It is calculated by dividing sales revenue by the number of orders. Higher AOV indicates that you are getting more out of each customer.
Percentage of new Customers
Whether or not your program is attracting new customers is a key affiliate marketing KPI. The new custom acquisition indicates the value of your affiliate campaign over time. At Woost, we focus on providing tracking solutions to help achieve your goals. Interpreting different KPIs can be complicated, but Woost helps you stay on top of the numbers.
It is the most critical KPI for any affiliate marketing program. Higher conversions translate to more sales. At the same time, a low conversion rate indicates issues with your program. It gives an idea about the clicks it takes for a single conversion. The conversions may improve during special promotions.
Constant tracking is critical for any affiliate program to detect any anomalies. It is a measure of a set objective over a period of time. Depending on the insights collected by these KPIs, you can optimize your program and increase the chance of reaching your goals. With Woost, you get access to the right tools to measure the effectiveness of your affiliate program.