Jasper Mulder, Chief Growth Officer at Pointspay, explains how Pointspay’s Alternative Payment Method overcomes the challenges of tracking by focusing on payments rather than traditional tracking, ensuring seamless rewards, better user experiences and improved engagement for advertisers.
In the fast-evolving world of affiliate marketing, online retailers and advertisers are grappling with the growing complexity of affiliate tracking. As regulations become more stringent and technology continues to adapt, the accuracy of affiliate tracking has become increasingly questionable. Discrepancies, which we see averaging 5% at a program level, are not just minor glitches. They're significant issues that can affect the entire affiliate ecosystem.
Trust is in the tracking
Affiliate tracking is fraught with challenges that have only intensified in recent years. Loyalty and cashback communities are particularly affected, as their members expect rewards that often do not materialize due to tracking issues. This situation frustrates users and raises concerns about the effectiveness and trustworthiness of affiliate tracking for these loyalty programs.
Compounding the issue are the varying consent and privacy regulations across different regions. For instance, the General Data Protection Regulation (GDPR) in Europe and its local interpretations imposes strict requirements on data collection and consent, which also differ from those in other markets such as the United States, where regulations can vary even at the state level. This patchwork of rules makes consistent and accurate tracking a daunting task for advertisers and affiliate networks.
Browsers adapting to user privacy expectations and the changeable plans around the ending of third-party cookies add another layer of complexity. As browsers tighten privacy controls, traditional tracking methods become less reliable, leading to increased discrepancies and negatively impacting the user experience. Ultimately, the victim is the loyalty member, whom these rules are meant to protect.
Pointspay’s Alternative Payment Method
Having spent 15 years in affiliate marketing and witnessing firsthand the growing tracking complications, I joined Pointspay, a Fintech that has developed a bona fide white-label Alternative Payment Method (APM) for loyalty communities. Pointspay offers an innovative solution that shifts the focus away from traditional tracking methods altogether. Instead of relying on outdated tracking systems, Pointspay leverages a payment solution to ensure accuracy and transparency.
Pointspay’s APM integrates directly into advertiser checkout pages, currently connecting frequent flyer loyalty communities like Flying Blue, SAS EuroBonus, Swiss Miles & More and Etihad Guest with over 100 brands signed up to the Pointspay ecosystem including the likes of ECCO, Samsung and Thrifty. This direct integration allows us to handle the money flow, meaning we collect the payment from the consumer and pay out to both the advertiser for the purchase to the loyalty community in the form of points, miles, or cashback instantly.
This out-of-the-box approach makes issues like consent, cookie tracking gaps, and delayed rewards a thing of the past. The reward is directly linked to the purchase, creating a seamless experience for users and eliminating the traditional challenges associated with affiliate tracking.
Delivering benefits for advertisers
For advertisers, the advantages of Pointspay's solution are substantial. Traditional affiliate tracking models involve navigating a complex web of privacy regulations, browser changes, and tracking discrepancies. This not only creates a significant administrative burden but also poses a reputational risk if loyalty members do not receive the rewards they expect.
Moreover – because we handle the money flow, Pointspay addresses these challenges by providing guaranteed, instant rewards. This shift from delayed rewards to instant gratification greatly enhances user engagement and loyalty. Users can redeem their points or miles immediately, leading to more repeat transactions and overall satisfaction.
An additional disruptive feature of being an APM is the ability to unlock on-site redemption during checkout. This means members can use their reward/loyalty wallet to pay for a portion of the purchase, creating tangible engagement and increasing the value of the rewards. This direct integration of miles, points or cashback balances extends the customer’s spending power in a frictionless way, influencing the market mindset and driving higher conversion rates and basket values for advertisers.
A new way of thinking
Pointspay’s solution not only benefits advertisers and loyalty programs but also offers an exciting opportunity for affiliate networks. While these networks have traditionally relied on their extensive relationships with brands and publishers, their technology has struggled to keep pace with new privacy regulations and tracking challenges.
Pointspay offers a way for affiliate networks to maintain their valuable relationships while leveraging cutting-edge technology. By integrating Pointspay’s payment-level tracking into their systems, affiliate networks can offer their partners a revolutionary approach to affiliate marketing. This approach eliminates issues related to tracking discrepancies and consent, enables in-app tracking per default, allowing networks to focus on their core strength, which is building and maintaining relationships & performance campaigns.
The new standard for loyalty and cashback
Let’s face it, the traditional affiliate marketing model was never an ideal fit for loyalty and cashback programs. Converting affiliate marketing advertiser commission into a loyalty reward results in non-consumer centric complexities which dilutes the potential value and impact of the loyalty program. The most successful loyalty partnerships require a far deeper integration and reciprocal proposition. Pointspay’s technology deliver this at scale, providing a cost-effective solution for advertisers of all sizes.
It's high time for disruption in online loyalty partnerships. Pointspay is leading this transformation by offering a solution that transcends traditional tracking methods. By focusing on payments, Pointspay is helping online advertisers overcome the challenges of affiliate tracking, ensuring a better experience for consumers and a more efficient process for all advertisers.
As the digital marketing landscape continues to evolve, Pointspay’s innovative approach is poised to become the new standard for e-commerce loyalty, offering a secure, convenient, and rewarding payment experience that enhances both customer satisfaction and merchant success.
To find out how Pointspay can eliminate your tracking challenges and power business growth, contact us today by clicking here.
