As the leading provider of Internet mailing and shipping, Stamps.comTM provides valuable e-services that allow businesses to control costs associated with mailing, shipping and returns operations. Its leverages key relationships with the U.S. Postal Service, UPS, FedEx, Airborne Express, DHL and Yellow Freight.
Following the launch of their marketing program in November 1999, their initial strategic programs were weakened by staffing and reorganization changes. By October of 2000, the number of orders for its internet postage service, which were averaging over 1,000 sign-ups per month, had deteriorated to approximately 650. That’s when they came to us to handle all their marketing efforts.
In addition to the immediate objective, which was to increase online postage orders, another goal was to “activate” dormant affiliates. Among the affiliate database of over 27,000 member, Stamps.com estimated only 5% of their current affiliates were active – an inordinately low amount based on industry standards.
In response to these dual objectives, we devised a holiday promotion to spur activity among partner sites. We created four affiliate payout tiers, providing a $40 per sign up commission to all top tier affiliates (affiliates who have driven in 500 or more postage service orders in the previous two months), a $30 payout to 2nd level affiliates (less than 500 sign ups, but more than 100 in the previous two months), and $25 payout to 3rd level and “inactive” affiliates (remaining affiliates within program). To re-establish communications with valued affiliates, we designed a monthly newsletter with pertinent information and a request for feedback – a tactic to induce affiliate involvement. Throughout the marketing campaign, we were constantly on the lookout for sites that were proven performers.
Once our strategy was in place, the program began generating significant success. From a low of approximately 650 postage service sign ups in October, the turnaround was dramatic, with over 800 sign ups in November, swelling to approximately 1,100 by December. On top of this, affiliate recruitment increased steadily, earning 1,000 new affiliates per month.
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