A UK beauty retailer’s successful Awin migration.

The Challenge

A UK-based online beauty retailer previously managed its affiliate programme in-house before partnering with Gen3 Marketing. While the programme had strong foundations, there was an opportunity to refine the affiliate marketing strategy, improve cost efficiency, and drive greater long-term performance.

Gen3 Marketing worked with the brand to optimise their Awin network migration, streamline operations, and enhance revenue tracking accuracy.

The Gen3 Approach

To address the challenge, Gen3 Marketing implemented a structured migration strategy focusing on cost optimisation and publisher expansion:

• Comprehensive Competitor Analysis: Conducted an in-depth review of competitors to identify areas for improvement and leveraged agency insights for strategic adjustments.
• Key Partnership Development: Established and nurtured relationships with high-performing publishers to drive programme growth and improve efficiency.
• Publisher Expansion: Recruited new, high-value publishers to the programme, increasing the number of productive publishers by +18% post-migration.
• Commission Structure Optimisation: Utilised the migration to introduce a more flexible commission structure, eliminating inefficiencies from the previous setup.
• Revenue Tracking Improvements: Identified that the previous programme included VAT and delivery charges in tracked revenue, inflating reported performance and programme costs. Adjustments during the migration ensured only net revenue was considered, leading to more accurate financial reporting and greater cost efficiency.
• Seamless Integration: Leveraged Gen3’s status as an Awin Certified Agency to ensure a smooth and efficient migration process with minimal disruption.

The Results

The migration to the Awin network delivered significant improvements across key performance metrics:

• Revenue Growth: Achieved a +4% year-over-year increase in revenue, despite the exclusion of VAT and delivery charges from tracked revenue. The prior platform had inflated revenue figures by approximately +22%.
  
• Cost Reduction: Reduced overall programme costs by 50%, driven by lower network fees, improved commission tiers, and the exclusion of VAT and delivery charges from commissionable revenue.
  
• Return on Advertising Spend (ROAS): Increased ROAS to +76%, significantly enhancing efficiency and profitability.
  
• Strategic Budget Reallocation: The cost savings facilitated reinvestment into new growth initiatives, including:
  • Spend-and-save promotions
  • A dedicated hairstylist campaign
  • Increased budgets for shopping campaigns, further expanding reach and engagement.

After years of in-house management, the retailer’s affiliate programme underwent a complete transformation under Gen3 Marketing.

By leveraging expert strategy, optimising cost structures, and expanding high-value partnerships, the brand not only reversed stagnation but unlocked sustainable revenue growth and slashed costs, proving the power of agency-led affiliate marketing.

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