Affiliate marketing has become one of the most effective ways to promote products and services online. However, for businesses to make the most of their affiliate marketing efforts, they need an effective affiliate tracking system in place. This is because lack of an effective tracking system can lead to a range of program performance problems, which can significantly impact the success of your affiliate marketing relationships and overall program profitability.
One of the biggest problems iGaming companies face if their affiliate tracking system is lacking is inaccurate reporting and loss of profit margins. Accurate reporting is crucial when it comes to tracking player conversions and lifetime value transactions. Without this data it becomes difficult for affiliate managers to determine how to spend their budgets to bring in high value customers from multiple traffic sources that their partners might be sending to their offers and campaigns. Having this kind of granular detail is key to securing better profit margins across your program.
Another problem that businesses face if their affiliate tracking system is lacking is poor affiliate account management. Managing affiliates can be a daunting task, especially if you have a large number of affiliates. However, a good tracking system can help you manage your affiliates more efficiently. For example, you can set up different commission rates for different affiliates, across different regions, limiting where and how your budget is spent from standard spray and pray campaign tactics. These features can help you motivate your affiliates to promote your products and services more aggressively at certain times or in certain areas cutting out wasted spend.
Without an effective tracking system, you may not be able to manage your affiliates efficiently which can lead to better performance and increased revenue.
Poor tracking can also lead to a lack of data transparency. Transparency is key when it comes to affiliate marketing, as it helps build trust between you and your affiliates. The more information and conversion parameters you can provide to your partners in real time, the faster and easier it is for them to . If your tracking system is lacking, you may not be able to provide your affiliates with the transparency they need. For example, if you are not tracking affiliate sales accurately, your affiliates may not trust you, which can lead to poor relationships and ultimately, poor performance.
Poor ROI from your affiliate channel versus other digital channels. If you are not tracking your affiliate sales accurately against other acquisition channels you may not know how much revenue your affiliate marketing campaign is really generating. Using a platform that can track all your media in one place can be helpful to distinguish attribution paths and where value is really being generated by all the touchpoints your customers have before they convert at your site.
There may also be legal & compliance problems arising if your affiliate tracking system cannot gather KYC information and onboard partners efficiently as it scales. For example, the process of collecting and verifying affiliate ID is required in some geo’s and automating this and documenting the process electronically may be a manual process if the platform you use is not geared to support this. Similarly, if you are not tracking affiliate sales accurately, you may not be able to comply with tax regulations, which can lead to legal problems.
Without an effective tracking system, operators may face a range of problems when they try to scale, including: inaccurate reporting, poor affiliate management, lack of transparency, poor ROI, and legal problems to name just a few.
If you are running an affiliate program and want to get more from this channel take a closer look at how your tech stack is supporting your business scale.
A simple demo and a quick call could change the way your team operates and manages your budget to create increased value from the partners you’re working with. Ultimately, investing in an effective affiliate tracking system can help your brand achieve affiliate marketing goals, and build strong relationships quicker than you might think!
Further Reading:
