Cancellation rate

tl;dr indicator that gives information about the rate of cancellations by an affiliate

Livius de Graaf

Last Update 3 years ago

The cancellation rate provides information about the rate of cancellations by an affiliate.


Cancellation rate as a key figure in online marketing


Various key figures can be used to determine whether a partner program in an affiliate network pays off for the affiliate. To give an affiliate network the proverbial 'ink on the pen', the number of commissions and the conversion rate are good indicators, as they influence the earnings of the affiliate (publisher). The cancellation rate also serves as an indicator here but is often underestimated when evaluating the profitability of an advertisement.


Reasons for a high cancellation rate


The affiliate generates leads and sales for the advertiser (merchant). However, the sum only marks the gross value of sales. Since with only a few exceptions every online purchase can also be canceled, the total number of sales does not automatically correspond to the number of sales that are ultimately commissioned. In addition to cancellations, there are also other reasons why a commission does not come into effects, such as the recurring situation that the buyer does not pay for the goods or services.


Analysis


The cancellation rate is a very good tool to control the decision for affiliates, but also advertisers. If the cancellation rate of an affiliate is very high, this indicates that the buyer is not satisfied with the advertised goods, the advertised product, or the advertised service. The collaboration must then be questioned.

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