It’s the run up to Christmas: The streets are packed with people buying presents for thier loved ones. It’s not just the shops in town who are rubbing their hands together as their profits soar, many presents these days are simply ordered online.
Customers visit your online shop through various channels. Many of these are paid a commision: Be it Newsletters, Adwords or affiliate partners. The commission is often based on the success of the visit, i.e the contact gets a share of the conversion.
If the customer had several contacts to different partners along his
customer journey then it gets complicated: Who gets the commision from the order? The easiest solution: All partners are paid the full commission. This payment of so-called multiple commission can easily lead to high overheads. And it is at this point that a Tag Management System comes into play, such as for example the econda Tag Manager.
A Tag Management System enables you to display a so-called cookie switch (also known as a tracking switch), which lets you specify which performance marketing provider receives the commision on a conversion. You can, of course, share out the payment. The choice is yours.
For this there are different types of commision schemes. Here are three possible options.
The so-called “Last Cookie wins“ principle is well known and rewards the last point of contact before the order is placed, as this finally pushed the customer into making the purchase. This person receives the full comission for the order. One problem here can be the so-called gift voucher spam werden.
The “First Cookie wins“ principle has the opposite effect. Here it is the first point of call, who intitates the first contact and thus brings the visitor to the online shop, is rewarded. This scheme is less popular, as many customers are not looking to make a purchase on their first visit but simply wish to browse and find out more.
The combination of both schemes is the so-called “Bath Tub Model“. The commision is shared out, so that the customer’s first point of call, as well as the last point of call before the order is placed both get an equal share. Other channels in the customer journey are rewarded at a lower level, so that a U-Shape illustration of the payment scheme is formed. The so-called U Model.
Using available cookies on the order confirmation page through a Tag Management System allows you to add and change individual tracking pixels on an interface. It also creates transparency between channels by automatically allocating conversions and makes campaign results easy to evaluate.
May I wish you every success with your Christmas trade and I’d be delighted to see you here again. In my next blog (published on 14.12.2017) you will learn how a cookie switch wtihin a Tag Manager can prevent the misuse of gift vouchers with a so-called Basket Freeze. Find out what benefits this can have for your online shop.