How to Measure the Success of Brand Partnerships
When you dive into the world of brand partnerships, you want to ensure you’re not just swimming but making waves. Tracking the right metrics can help you gauge the success of your efforts and refine your strategies for even better results. Here are five key metrics to keep an eye on:
1. Conversion Rate
Conversion rates are the heartbeat of your brand partnership efforts. They represent the percentage of visitors who take the desired action, whether it’s making a purchase, signing up for a newsletter, or redeeming a reward. By comparing conversion rates before and after implementing a brand partnership, you can clearly see the impact of your collaborative efforts. For instance, Plusnet experienced a remarkable 90% increase in the likelihood of customers completing an upgrade after revamping their rewards portal with Tyviso, demonstrating how strategic partnerships can significantly enhance the customer journey.
2. Average Order Value (AOV)
A successful brand partnership can lead to a noticeable increase in Average Order Value (AOV). When customers are presented with enticing offers, such as a Gift With Purchase, they’re incentivised to buy more. This is because the prospect of receiving a complimentary item encourages shoppers to add additional products to their cart to qualify for the gift. For example, Wild partnered with SimplyCook to offer a free trial box as a gift, driving significant sales while increasing basket completion rates. By collaborating with complementary brands, you not only provide value to your customers but also create a shopping experience that drives higher spending.
3. Customer Retention Rate
Customer retention is like the gold star of brand partnerships. Keeping your existing customers engaged and satisfied is just as important as attracting new ones. By tracking your retention rate, you can assess how effectively your brand partnership initiatives contribute to customer loyalty. For instance, after collaborating with Tyviso, Parcel2Go saw a 17.2% increase in revenue per user, indicating that their partnership efforts successfully encouraged repeat business. If customers continue to return after engaging with your partnership offerings, it’s a strong sign that you’re delivering value.
4. Engagement Rate
Engagement rate is a vital metric to gauge how well your audience resonates with your brand partnership initiatives. This can include tracking social media interactions, website visits, and the number of users interacting with partnership offers. For example, Secret Sales saw a 66% increase in basket completion when customers could select a gift during checkout, showcasing that a well-placed partnership offer can capture attention and encourage interaction. High engagement rates suggest that your messaging is connecting with your audience, fostering a sense of community and excitement around your brand.
5. Customer Acquisition Cost (CAC)
Customer Acquisition Cost is another crucial metric that reflects the efficiency of your brand partnerships in attracting new customers. This figure represents the total cost of acquiring a new customer, including marketing and partnership expenses. By collaborating with brands that complement your offerings, you can lower your CAC while driving new customer acquisitions. For example, the collaboration between Wild and SimplyCook resulted in nearly 500 acquisitions in just the first month, showcasing how effective partnerships can significantly reduce the cost of bringing new customers into the fold.
With these five key metrics in hand, you can take a proactive approach to measure the success of your brand partnerships and make informed decisions that drive growth.
Ready to explore the benefits of brand partnerships for your business? Book a demo with Tyviso today and discover how our solutions can enhance your strategy!
Sid Senthilnayagam
Client Services @ Tyviso
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