How a leading UK health and beauty brand achieved +443% affiliate revenue growth.

The Challenge

An online health and beauty brand in the UK sought to expand its affiliate marketing channel’s contribution to revenue but faced several industry-specific hurdles.

While the brand had historically maintained a steady, low-risk affiliate strategy, competitors with larger budgets dominated key placements.

Beyond budget constraints, tracking limitations made it difficult to differentiate new vs. returning customers. Additionally, regulatory restrictions limited promotional messaging, and consumer scepticism around certain healthcare products slowed adoption.

The pharmacy needed a targeted, data-driven approach to:

• Maximise existing partnerships.
• Improve return on ad spend (ROAS).
• Position affiliates as a core revenue driver rather than a secondary acquisition channel.

The Gen3 Approach

The solution was a precision-focused strategy that optimised partnerships, commission structures, and promotional tactics to drive scalable, measurable growth.

Strategic Affiliate Segmentation

Gen3 restructured the affiliate programme, segmenting partners into three categories:

1. Top revenue drivers
2. High-traffic but low-conversion partners
3. Inactive accounts

This allowed for tailored commission models, rewarding performance while reviving dormant partnerships.

A tiered CPA model was introduced, differentiating between new vs. returning customers and adjusting rates for key product categories, ensuring competitive placements for high-value treatments.

Performance-Driven Partner Management

To strengthen publisher relationships and secure premium visibility, Gen3 implemented:

• Regular Communication & Strategy Sessions: Monthly publisher spotlights and co-branded promotions.
• Targeted Affiliate Onboarding: Signing a top UK cashback site, which quickly became a leading revenue contributor.
• A/B Testing to Refine Campaign Timing: Identifying peak conversion periods to secure high-impact homepage placements.

Leveraging Data & Smart Optimisation

The tracking and reporting framework was overhauled, introducing granular analytics that informed spend allocation and partner incentives. Key actions included:

• AI-driven Performance Tracking: Identifying top-performing placements and campaign opportunities.
• Conversion Optimisation: Adjusting minimum spend thresholds, increasing AOV by +47% YoY.
• Compliance-friendly Messaging: Crafting promotional content that adhered to industry regulations while addressing consumer scepticism.

The Results

The strategic shift delivered exceptional YoY performance, firmly establishing affiliates as a top growth channel:

• +443% revenue growth in the affiliate programme.
• +60% ROAS improvement.
• +47% AOV increase (from £120 to £177).
• 129 new affiliates onboarded.
• 15 inactive partners reactivated.
• +190% YoY market share increase.

Breakout success from key partners:

• A leading deals platform saw a +5,898% revenue increase after targeted optimisation.
• A major voucher partner achieved +1,642% revenue growth and a +1,121% increase in sales volume.

By revamping its affiliate strategy, this digital health and beauty brand transformed its performance marketing channel into a major revenue driver. The combination of data-driven decision-making, smart partner management, and innovative campaign execution positioned affiliates as an essential pillar of long-term ecommerce growth.

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