I’m a pessimist.
The first question I have, is “Prove it.” Right?
I’ve heard this from a hundred people, prove it.
And what I want to do is kind of end at the beginning here and just say, “This stuff works.”
When I got to Carbonite, there was a golden goose, sacred cow and that was Affiliate.
These guys have been living under the dark, dank cloud of single touch attribution for so damn long, they were just impossible to move off of the thought that a failure could ever be touched. They had this group of people huddled around it, saying “kumbaya” and I just couldn’t get into that conversation.
We all raised an eyebrow and said, “Well, but we’re data people, we’re not going to come in with emotional assertions of their ridiculous nature, we’re going to come in with some data that is going to prove to the team that we can do something better.
Enter multi-touch attribution (MTA) from C3 Metrics.
About two and a half months into C3 Metrics, what we saw was absolutely mind-bendingly terrible results from Affiliate.
This golden goose that for so long had been the sacred cow was returning pennies on every dollar spent and we said, “Listen guys, I know this is going to be hard. We’re going to take the blanket away from you guys and we’re going to make some really tough decisions.”
We can’t do that, because they’ve been loyal for so long.
And we said, “Sorry, we’re cutting their commissions and we’re going to cut them drastically.”
Everybody came in and we see this really strong jump upward in terms of the AVSR. I don’t know how many people are familiar with what that number means, but it’s an Attributed Value to Spend Ratio.
For every dollar we spent, we’re getting back an accretive business value.
So we see this kind of jump up and we’re all like, “Yahoo!” And in Carbonite’s history and culture, that’s the point when you walked away and you found a new problem.
They’re like victory, declare victory. Then plant the flag and they’re on to the next issue.
I said, “No, no. This is an evolution. This is a conversation.” We need to come back and say, “What’s the next lever to pull?”
We said, We’re going to keep working and there’s a way that we’re going to get this to be better.”
And guess what?
We had a really solid level of confidence in C3 Metrics and we worked through finding a new lever that was able to drive business value and ultimately if you were to look at this, this is the first couple of quarters if you will of C3’s existence, the affiliate program now drives quite a bit more volume.
We can’t expose all of the numbers, but it’s pretty safe to say about 2x total volume.
The exact same level of pay in terms of the cash out and we have this up to about 2, 2.5 at any point in time.
Really, really cool success story.