Affiliate Marketing and Customer Satisfaction

Affiliate Marketing and Customer Satisfaction

Surabhi Singh (Jaipuria School of Business, India)
DOI: 10.4018/978-1-5225-5187-4.ch057
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Abstract

The different tools used in digital marketing are meant to increase the web traffic. One of the important components is Affiliate Marketing. This chapter will bring huge transitions in industry of digital marketing. The affiliate marketing has benefits of increasing customer satisfaction and value driven efficiency in any organization. The study of affiliate programs need to be activated in organizations in order to exploit the potential of same. The companies like Amazon, snapdeal, and flipkart are running affiliate programs and the brand of these companies remain unbeatable. The purpose behind affiliate marketing is to use publisher or affiliate website for promotion of merchant's own products. The underlying benefit is its low customer acquisition cost and marketing expenses.
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Background

Affiliate marketing has the important ways to generate revenue for bloggers and other website owners. The companies are improving on the transparency in the business deals. Earlier Google Ad sense was the only option for bloggers for revenue. AdSense license was difficult to come by. Affiliate means a type of online marketing technique where an affiliate promotes a business through an advertisement on their web site and in return that business pays the affiliate with commission each time a customer generates sales. Affiliate marketing is also called performance marketing and associate marketing. The three parties involved in affiliate marketing are:-Advertiser, Publisher, and Customer. Advertiser can be any company selling products like electronics, books, clothing, and air tickets online or could be insurance company selling policies etc. Publisher is the one who promotes advertiser’s products or services through its website or blog. The final part of this cycle is customer who sees the advertisement, the click takes him from publisher’s website to advertiser’s website and on purchase it is called conversion. Amazon had started amazon.in in India to promote sales.

Figure 1.

Parties Involved in Affiliate Marketing

The companies choose affiliate to drive traffic to their own website and increasing the conversion. The satisfaction of customer is enhanced when you sell any product to customer. The conversion actually makes the customer aware about the company’s product and satisfaction becomes enhanced. Yepme.com also have same nature of generating sales. They give affiliates fix commission of 5%. Some of the users of affiliate marketing network in India are online businesses like Flipkart, Amazon, MakemyTrip, and Yatra.com. The important attribute of advertiser is that it will pay the partner websites when it generates business. Merchants are required to open an affiliate or associate program on its website where affiliates can register. Through this portal a merchant shall provide affiliate with all the necessary technology support like codes and links for the products and services.

Affiliate Program by Online Job Sites Searching job online is becoming very popular and profitable in India. There has been a 25% (CAGR) hike in online job posting in 2014. Therefore many online job portals want to increase their market through affiliate marketing. Some of them are: Monster.com, CareerBuilder.co.in. Some other important Affiliate Marketers are some miscellaneous affiliate program providers from different online categories: Apple.com (Online Apps and music store), Radisson.com (Hotel chain), Reebok.com (Sports shoes, apparels maker), Hostgator.in (web hosting provider), QuickHeal.co.in (IT security provider), Fropper.com, Zapak.com (Online gaming portal), GaneshaSpeaks.com (Online Astrology website), iforex.com, Indiamart.com (Online B2B marketplace), Bigrock.com (Web hosting). And GoDaddy.com (Website hosting) click) which takes him from publisher’s website to advertiser’s website and after making a purchase it is called conversion. In case of Indian online market, according to IAMAI, the digital commerce market has seen a growth by 33% to Rs 62,967 crore last year as against Rs 47,349 crore. And it is predicted that this online market will become $50-$70 billion by 2020 for the increasing popularity of online shopping and increase in internet penetration. Online retailers like Flipkart, Amazon, and Yatra.com have already started affiliate marketing in India and the technique is gaining popularity in digital market.

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