Razor-sharp acquisition and retention, powered by Partnerize.
The challenge
Dollar Shave Club is a disruptive razor subscription service with millions of members. As part of their on-going marketing strategy to achieve vertical-leading customer lifetime value, the brand challenged their agency, The Specialist Works, to drive more value through the affiliate channel, by improving in-channel customer retention rates, on the Partnerize platform.
Dollar Shave Club defines a profitable customer as retaining 50% of members after 12 months. The Specialist Works set out to understand at which point a customer acquired through the affiliate channel becomes valuable, as well as to define the sweet spot for commission rates to achieve optimum customer lifetime value.
The solution
The Specialist Works set out to challenge traditional approaches to partner commissioning for subscription brands, by introducing a new commission structure, rewarding customers at the most valuable point in the customer cycle.
The Specialist Works created a clear measurement framework to prove incremental improvements made through the campaign and showcase the value that can be driven through the affiliate channel.
The team relied heavily on Partnerize’s integrated technology solutions including analytics and attribution to be able to view their partner channel results side-by-side with the brand’s digital mix.
Working within the parameters of the measurement framework, the agency was able to evidence success to Dollar Shave Club.
Utilized Partnerize’s Discover toolto access an ecosystem of 750,000+ partners and 250,000+ influencers.
Selected partners based on demographic fit and ability to adopt flexible commissioning,enabled by Partnerize’s dynamic commissioning functionality
Used the commissioning toolto determine customized partner rewards across unlimited data points and conversion attributes including revenue threshold, AOV, customer type, SKU, and more.
Used Partnerize’s reporting dashboard,plus a mix of first-party and third-party insights to achieve the desired commissioning flexibility, providing bonus commission once a customer reached the targeted subscription point.
The results
The Specialist Works unique approach to testing new commission structures and proving their hypothesis before rolling out to a wider audience ensured that they were not only driving new customers, from best-fit strategic partners, but were also driving valuable customers with a higher chance of retention. In fact, through this optimised approach, affiliates achieved a higher 12 month retention rate–higher than all other paid channels
The Specialist Works was able to optimize partner relationships and adopt a strategic approach to commissioning, ultimately:
Increased retention rates by +84% YoY
Achieved a +13% increase in sales YoY
Improved data insights and customer trends
Showcasing incrementality via improved reporting
By working with Partnerize and leveraging the Discover and Track capabilities, we were able to prove our hypothesis on in-channel acquisition and retention, and achieve our strategic goals by remodelling the commission structures on Dollar Shave Club. This wouldn’t have been possible without Partnerize’s dynamic commissioning tool. We are also thrilled to have completely debunked misconceptions about the affiliate channel for acquisition, by showcasing how with the right strategies and the right tools and teams, it’s possible that this customer cohort can be better retained than other channels in the mix!
Dani Leman
The Specialist Works
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See how the Partnerize Partner Management Platform can help you scale your partnership programs, diversify revenue streams, and ensure outstanding brand protection.
