Retail Focused Affiliate Network and Strategic Couponing Campaign Results in 20% of Retailer’s Online Sales

Background

Chrome started 15 years ago in Boulder, CO when two guys in their garage set out to build the toughest messenger bag on the market. Before long, word was out that Chrome was making the best bags around. In addition to bags, Chrome also designs and sells clothing, gear and shoes. The company’s head office is in San Francisco and Chrome has two retail locations, one in San Francisco and one in New York. For more information, visit chromebags.com.

History

Prior to working with Direct Agents, Chrome did not have an affiliate marketing presence. In the fall of 2009, they decided that they would pursue affiliate marketing and selected Direct Agents to manage their affiliate marketing program. Their goal was to drive incremental online sales through affiliate marketing and also maintain the strength of their brand with their core audience.

Proposal

After taking into consideration Chrome’s goals, Direct Agents established Chrome on the Google Affiliate Network (GAN). GAN was chosen since Direct Agents could research and prescreen affiliates performance before the campaign was launched with them and GAN’s progressive technology tools were a good match for the Chrome program. Additionally, Direct Agents found a good fit for Chrome with GAN’s smaller, more focused affiliate base, specifically affiliates who value high-end retail brands.
In order to avoid turning Chrome into a coupon brand, Direct Agents focused on quality versus quantity when it came to discount promotions. They provided affiliate specific click-thru coupons versus general coupons so as to avoid coupon crawling by coupon aggregators. Direct Agents also focused on unique promotions with hand selected affiliates such as co-branded coupons and landing pages for top affiliates.

Result

Direct Agents was able to handpick the affiliates who received the Chrome offer and Chrome was able to approve all affiliates prior to each affiliate launching. Within the first three months of running the Chrome campaign on GAN, Direct Agents nearly tripled the revenue for the Chrome Affiliate Marketing campaign. Over 5% of affiliates on GAN, who have all been pre-approved by Chrome, are running the campaign. Affiliate marketing sales account for 20% of Chrome’s online business and that percentage is continuing to grow.
One very successful campaign included affiliates pushing Chrome’s discontinued and surplus inventory online. As a result of the affiliate program, Chrome sold $25,000 in merchandise that would have otherwise gone unsold and taken up precious warehouse and/or retail store space.

Future

Direct Agents continues to improve campaign positioning and optimize placements for the Chrome affiliate campaign. Due to the success of the affiliate program management campaign, Chrome is looking into expanding into other areas of digital marketing including social media, and online viral CPA.