Customer Lifetime Value Attribution

What is Customer Lifetime Value (CLV) Attribution?

The Customer Lifetime Value attribution is an attribution model that rewards each channel which contributes to a conversion and keeps rewarding these channels across the full customer journey (future sales). This model differs from mono-attributive models (first-click or last-click), which only reward a single channel regardless of the involvement of additional channels in a sale.

What Are the Benefits?

For every conversion, you will be rewarded for your contribution, regardless of your position in the funnel path. The more you are influencing a sale, the bigger your contribution share and commission will be.

The CLV attribution considers the entirety of the customer’s journey over a period time. If you contributed to a user’s conversion, you might also be rewarded for conversions made by this same user in the future, even though you no longer generate contact.

How Does CLV Work for the FlixBus Affiliate Program?

There is no supplementary effort needed from your side. The affiliate program works just like any other.

A third-party algorithm analyzes the conversion funnel of each sale. The attribution takes place in two steps:

1. Calculation of the Channel’s Contribution 

For every conversion, the algorithm calculates the weight of each contact (click or impression) involved and attributes the revenue accordingly. The weight of each contact is based on the contribution to the conversion probability, which considers factors like time between contacts or depth of user engagement.

2. Calculation of the Channel’s Contribution in Future Conversions

For each future conversion, the algorithm considers the contacts of the new conversion and those from past conversions. If past contacts still have an impact, the algorithm will attribute the revenue after considering these. This means that you can receive a commission for conversions that you didn’t have any contact with.

The conversions are uploaded daily on Tradetracker at noon (CET).

How Does This Work in Practice?

John books a FlixBus ticket for the first time and paid 20€. Before booking, he visited a deal portal (Affiliate1), then a blog (Affiliate2), and clicked on a search ad (SEA). Affiliate1 mainly influenced the conversion and received 60% of the order amount (12€), 30% went to SEA (6€), and 10% to Affiliate2 (2€).

Two days later, John wanted to book a second ticket and went directly to FlixBus.com. For this reason, 70% of the order amount goes to website. The algorithm still considers the influence of the previous contacts. Therefore, the remaining 30% was shared between Affiliate1, Affiliate2, and SEA. 

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How to Interpret Your Transaction Statistics?

When looking at the transaction report, here are the important points to consider:

  • The attribution includes the click date and time, as well as the date and time of the conversion. The format is the following: {click date and time}; {conversion data and time}.
  • With the CLV attribution, the timespan between the touchpoint and conversion might be higher than you are used to, especially when you are rewarded for future conversions.
  • The Registration Date corresponds to the date and time of the conversion upload.
  • Characteristic: Each contact is unique. Therefore, you might get rewarded several times for the same conversion. The format is the following: {order id} - {touchpoint referral}
  • The Order Total corresponds to the order share attributed to your account. This number can be null if your contact hasn’t contributed to the conversion.
  • The Commission is calculated based on the Order Total.

Exception for Cashback Publishers

To allow cashback publishers to reward their users, they must be submitted with the following attribution: the order will be attributed to a cashback publisher if he/she started a session during which the order has been made. A session lasts 30 minutes.

Cashback publishers benefit from this exception as long as their new customer rate reaches 20%.

Modification of the Attribution

FlixBus reserves the right to change its attribution model. Publishers will be informed at least 30 days in advance of any upcoming changes.

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