How we’ve used affiliate marketing to achieve start-up success
Fresh from raising £4m, Laundrapp discusses how an affiliate marketing strategy has helped get users to download and then engage with its app…
Founders: Ed Relf (pictured), Antony Pink and Nick Bransby-Williams
Company name: Laundrapp
Started: 2014 (launched January 2015)
Company description: Laundrapp is a dry cleaning and laundry app. It is “one of the UK’s fastest growing start-ups” and the only dry cleaning and laundry app to offer coverage across London, Birmingham and Edinburgh.
Describe your start-up barrier
It’s reported that 85% of downloaded apps are deleted before use. As such, it is difficult in the competitive app market to create a ‘valued’ app with high user engagement and longevity. The challenge was how to target customers to not only download the app but engage with it.
What steps did you take to get users to engage with your app?
In March 2015, we started working with affiliate network Affilinet to promote the app through its affiliate channel.
Affiliate marketing is a type of performance-based marketing, whereby an advertiser (merchant or brand) rewards affiliates for their marketing contribution towards visitor conversion on a commission basis, in this case in app purchases. Affiliates are content producers and come in many forms; from voucher code, cash-back and price-comparison sites, to bloggers and content publishers in the more traditional sense. Find out more about affiliate marketing here.
The opportunity as we saw it was to not only drive sales and increase reach but to also attract quality, valued customers with far higher engagement levels, than that offered by campaigns where we are paying out on a cost-per-install basis.
What was the outcome?
Although the affiliate campaign is in its early stages, Laundrapp is already yielding some great results. The industry consensus is that most apps have a 1% to 2% average in app conversion rate and the app is already exceeding these percentages and average industry download rates – for it be so high at this stage is excellent.
What three questions should other app businesses ask themselves before using affiliate marketing?
- What are your target consumers’ purchasing habits and specifically, how do they buy online? By understanding this you can ensure your affiliate programme is tailored to meet the needs of the business based on how the consumer is likely to interact with content about your product.
- What support and service do you need from your affiliate network to achieve key business goals? You will need to consider how an affiliate platform integrates with existing business systems.
- What is my customer acquisition strategy and what sites do I want to work with? It’s worth researching your options to ensure you’re maximising results when it comes to securing customers.
What one piece of advice do you think app entrepreneurs should take on board?
Understand your customer! By knowing what the customer journey looks like, you can ensure your affiliate activity is tailored to your key consumer groups.