In a challenging time for retail, both in-store and online, the online store Luksusbaby.dk relies on a performance-based marketing strategy. This approach has yielded results with over 40,000 orders in 2023.
According to Dansk Erhverv, inflation, war, and rising energy prices have affected the purchasing power of Danish consumers. After a challenging 2022, the challenges for retail, both physical and online, seem to continue with declining sales in the first and second quarters of 2023. This impact is also evident at the online store Luksusbaby.dk, which is competing for customers in a tight market for baby equipment and clothing.
Experienced business men in uncharted waters
One of the recent additions to Luksusbaby’s marketing mix is performance-based affiliate marketing, managed by the affiliate network Daisycon.
The ramping up of the collaboration between the two parties has been underway for some time but gained momentum in May 2023. Since then, it has progressed rapidly, and Daisycon can already show impressive results with over 38 million Danish kroner in revenue for 2023 for all of Luksusbaby’s online stores.
Transparency and trust are crucial
Over the years, the people behind Luksusbaby have tried various marketing strategies, but they have only recently joined the affiliate marketing trend. The choice of Daisycon as a new partner is largely due to Daisycon’s approach being data-driven and transparent.
Information: Affiliate marketing
When a business enters into an affiliate marketing partnership with an agency like Daisycon, the agency helps the business reach potential customers by placing relevant affiliate links to the business’s online store on media and with influencers from the agency’s national and international network.
Affiliate marketing stands out from other typical online marketing disciplines such as Google Ads and social ads by being performance-based, where the advertiser only pays for orders that result from the agency’s affiliate campaign. The commission that is pre-established is a percentage of the order value, so the parties involved know what the collaboration will cost compared to the revenue generated.