Presented by LeAnne Armstead of Kroger

1. How to Stand-up an
Affiliate Program
and Effectively Test
Within Performance
Marketing
• August 13, 2019

2. 2
The Kroger Co.
Kroger offers thousands of quality food and household products
from your favorite brands and companies. From fresh produce,
meats and seafood to dairy and home goods, we are your one stop
for savings. We also offer multiple ways to shop, so getting your
groceries is easier than ever. You can shop online and get your
groceries delivered to your home in as little as one hour, or pick up
at your local store within a one hour window!
With nearly 2,800 stores in 35 states under two dozen banners and
annual sales of more than $115.3 billion, Kroger today ranks as one
of the world’s largest retailers.

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COUPONS
& DEALS
OPTIMIZE
Improving marketing efforts and
maximizing business approach can
lead to more desired results
LOYALTY/
CASHBACK
TEST, TEST,
TEST
Implementing strategic tests to scale
can lead to transformative
discoveries to help drive
conversation
THE
IMPORTANCE
OF
SOCIALIZATION
Gaining internal alignment and spreading
the word about your marketing channel
will be crucial to success
Agenda
Establish & Optimize Affiliate Program

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Socializing your Marketing Channel

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Set Channel Goals
• Expand marketing presence
• Drive Revenue + Trips
• Increase Market Share
Discuss Dependencies
• Identify associated
technical work
• Establish launch roadmap
Convey Opportunity
• Quantify/Project potential
revenue impact
• Communicate expenses
Determine Objective Key Results

6. What is
Affiliate
Marketing?
• Reinforce Pay Per Revenue
Strategy
• Identify Types of Publishers &
Business Model
• Define Commissions and
commissionable events
• Program Promotion
• Testing & Optimization

7. 7
Socialization
of Affiliate
Marketing:
Network and have a good understanding of how affiliate
marketing fits into your department the broader marketing
organization and your company
Identify and onboard with
important working teams:
Sales/Merchandising
Technology/Innovation
Loyalty & Rewards
Data Science/Analytics
Deep dive into the business needs and goals
Identify budget needs including projection on commissions
based on industry information, incremental placements,
retainer for an agency
Develop use cases for adjacent
teams
“I googled discount sites and Retailmenot.com
was listed within the search results. I went to the
website and typed in “grocery” which took me to
a page with various consumer goods brands and
offers. Kroger offered $10 your first purchase
using code “SHIP”.

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Performance Marketing & Testing Agenda

9. The Kroger Co.
As a company, we are committed to digital innovation
and redefining customer experiences that bridge
accessibility to fresh food. Corporately, we forge
partnerships that foster customer value and serve
communities.

10. 10

11. Challenge:
Utilize digital marketing to reach consumers via e-commerce. To invest in
easy- to track performance. To draw savvy shoppers, who transact on
mobile and to automate their shopping and rewards programs.
We wanted to create omnichannel programming that was low-risk and ROI
focused.
Therefore, we outlined partnerships, that enabled new technologies and
platforms while establishing a testing agenda that could be targeted and
was 100% measurable.

12. Solution:
Implemented cash-back tests across
various time durations for 3 month
duration
Tracked incremental Kroger
shopping intent through offer
linking modality (Decrease passive
sales)
-AND-
every incentivized in-store
consumer transaction.

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Performanc
e Marketing
Testing
Agenda:
Identify purchasing
partner and understand
customer experience and
user flow. Acquaint
yourself with shopper path
to purchase
Set clear objectives
and test goals. Align
with business needs
and how test can
support
Establish timing and
budget. Prevent overlap of
in-market tests, to ensure
“clean” results, and set
expectation of when
investment will exhaust
Understand offer strategy
and customer incentive.
Decide on test targets
based on demographics
Coordinate test
methodology to
effectively track KPI’s and
incrementality

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Optimization

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Marketing
Optimization
:
Analyze test results and determine key takeaways in order to
scale test.Analyze
Dig into customer targets.Dig
Deepen partnerships. Closely collaborate and actively meet
with partners to create effective programming that worksDeepen
Gain alignment on learningsGain
Implement subsequent test phase that is longer and broader
to better understand customer behaviorImplement

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Questions?