E006 - Operational Maturity

Today, we introduce the 4 levels of Operational Maturity in affiliate marketing for lenders. We’ll go deep on 101 and 201 levels. The 301 and 401 levels will be covered in our next episode.

 

Summary of the 4 levels:

 

𝟭𝟬𝟭 - 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝗮𝗹 

We're focused on the volume of leads and the cost of acquisition. The rest of the operation looks a lot like affiliate programs in other industries. There's not much attention placed on the quality of accounts that we acquire.

 

𝟮𝟬𝟭 - 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 𝗔𝘄𝗮𝗿𝗲

We learn that not all leads are created equal and not all lead sources are created equal. We pay more attention to what happens to a customer post-booking. 

 

How much revenue are they driving? 

What are the delinquency rates? 

What are the loss rates? 

 

We start to think about the relationship between LTV and cost of acquisition.

 

𝟯𝟬𝟭 - 𝗙𝗲𝗲𝗱𝗯𝗮𝗰𝗸 𝗹𝗼𝗼𝗽 𝗮𝘄𝗮𝗿𝗲

We learn that when we make a change to our business, the affiliate reacts in a certain way, and that in turn has a knock-on effect on our business. We also start to overanalyze why volumes dropped and why applicant quality is changing. We often get distracted by a lot of these questions as there are often no actions we can take as a result of our curiosity.

 

𝟰𝟬𝟭 - 𝗣𝗮𝗿𝘁𝗻𝗲𝗿 𝗙𝗶𝗿𝘀𝘁

We learn that our success relies on delivering exceptional products and exceptional buying experiences for our affiliates' customers. Under this frame, we recognize that each affiliate's a little different. They all have different buying experiences, data assets, customer types, and integration capabilities. We try to reverse engineer our business to best fit each partner. We notice that we were overanalyzing the volatility in our programs, and conclude that our investigations were often unproductive.

 

Timestamps:

(00:00) Why maturity matters

(04:36) The 4 levels

(10:18) 101 deep dive

(17:56) 201 deep dive

(26:15) Wrap up and next steps

 

Where to find Carlos:

• LinkedIn
• Twitter/X

 

References:

A written summary of the 4 levels of Operational Maturity:
https://www.linkedin.com/posts/the-carlos-caro_operational-maturity-affiliates-activity-7204481122464907264-f_hC

 

Find Us:

Don't forget to subscribe to Affiliate Marketing for Lenders. If you’re interested in being a guest on the show (or if you have questions for a future episode), send me a note on LinkedIn, Twitter/X, or at carlos@newmarketgrowth.com.