Web Hosting Service Provider Uses CAKE to Track Affiliate Program
UK2 Group, a major player in the hosting industry, provides domain name registration and web hosting services to millions of customers worldwide through its family of hosting brands, which include UK2, .net, Midphase, WestHost, 100 TB and others. The group operates its services out of several state-of-the-art data centers and is committed to providing reliable and secure products and services, underpinned by excellent support.
THE BUSINESS CHALLENGE
UK2 Group’s affiliate program, Aff.biz, helps drive sales for the array of web hosting packages offered by its brands. Because the UK2 Group has multiple web properties as well as different affiliate commission structures based on the type of package that customers purchase, it needs detailed, real-time insight into transactional data that shows the value of each affiliate-referred sale. Prior to CAKE, UK2 Group was working with two third party affiliate solutions to track affiliate performance. But when CAKE acquired one of the vendors that the company was working with, they decided to either transition all their affiliate tracking over to the remaining third party vendor, or move their affiliate program entirely in-house with CAKE. The challenge for UK2 was to determine which approach would deliver accurate metrics at the most affordable price.
“Our decision to run our program in-house with CAKE was unquestionably the right thing to do. Operating costs would have increased by close to 600 percent had we migrated fully to a fee-based third-party network solution.”
Affiliate Program Manager – UK2 Group
After carefully evaluating the options, UK2 Group decided to transition the management of Aff.biz in-house, as opposed to relying on more costly third-party network providers. The third party network they were previously using was not only more expensive due to a pricing structure that charges a percentage of performance-driven sales, it also couldn’t provide the granular level of transactional metrics that UK2 was looking for. With CAKE, UK2 now has accurate insight into which packages are selling the best among affiliate-referred traffic, and which affiliates are driving the most sales. These metrics are empowering the company to set commission rates predicated on net profit margins and the lifetime value of customers. Using the intelligence captured by CAKE, UK2 is now incentivizing affiliates to promote higher value web hosting packages, which is in turn enhancing the overall profitability of Aff.biz. Within the first 60 days running on CAKE, the program experienced a 16 percent boost in ROI and this percentage is expected to increase to 20 percent within a year.
- Accurate, real-time insight into net profitability of affiliate-driven sales
- Greater control of affiliate program at a lower operating cost
- Enhanced decision making and higher overall profits for affiliate program
- Highly granular, real-time campaign insight
- Ability to capture transactional metrics
- Saas model for in-house affiliate program control
- More affordable and more accurate than network options