Brand Partnerships Become Top Acquisition Channel for The AA
How quickly can brand partnerships become one of your top acquisition channels?
Find out with our new case study featuring breakdown service The AA, whose use of BrandSwap opened the doors to high-performing partnerships at Screwfix and Currys.
The challenge
In February 2024, cashback publishers were responsible for the majority of The AA’s affiliate programme revenue.
That position had pros and cons. While cashback provided The AA with a valuable channel for acquiring new customers, it was not void of flaws.
Firstly, cashback audiences were more likely to switch breakdown providers once their cover ran out. Their primary motive for using these sites was to find the best deal. Once expired, they’d routinely search for a better one.
That incentive-driven environment also promoted a dangerous race to the bottom with competitors, resulting in far less profitable outcomes.
The AA found itself on a well-driven route. With its cashback efforts nearing a point of exhaustion, it needed a different type of partner.
The goals
The AA’s brand partnerships journey started with outreach from BrandSwap, which was on the lookout for niche offers to showcase at two of its biggest retail hosts, Screwfix and Currys.
A partnership involving the distribution of an AA offer to BrandSwap’s retail hosts, who would earn a commission each time it was redeemed, seemed like a no-brainer. Nevertheless, BrandSwap had to prove its effectiveness across two KPIs:
- Acquisition volume
BrandSwap agreed to work to acquisition targets for each retail host, which would consider offer strength, seasonality, and investment.
2. Conversion growth
An aggregate measure of performance would reflect how relevant BrandSwap’s audiences really were. The AA planned to monitor conversion rates (CVR) to gauge its receptiveness, and also growth for the partnership on the whole.
The solution
Finding high-performing partners with relevant audiences was critical to driving volume and customer quality. Both Currys and Screwfix had audience overlaps with The AA, either through products sold to car owners (e.g. Bluetooth stereos for Currys) or van owners (Screwfix).
The AA met its side of the bargain with a largely exclusive offer for ‘40% off’ annual breakdown cover, unmatched when the group isn’t running an on-site promotion. When The AA went above ‘40% off’ on its site, BrandSwap was permitted to switch to the more generous offer, ensuring customers engaged via brand partnerships always got the best deal regardless of promotional periods.
The reward was embedded into a slick post-purchase user journey that provided extra value for customers. After making a purchase, BrandSwap showed The AA’s offer on the retailers’ confirmation pages. Customers were then free to opt-in and receive an email from The AA with the steps to redeem the offer, or click directly out to The AA and sign-up via its site.
BrandSwap followed up with a smartly executed strategy, using its technology to engage in-market audiences. This included:
- Segmentation: Tradespeople were a target audience for The AA, which has an offer for business customers insuring multiple vehicles. On Screwfix, BrandSwap used first-party data to segment traffic for B2B customers and include the business offer within the banner.
- Flexible delivery: BrandSwap’s launch of reward delivery via WhatsApp/email at Currys and Screwfix gave users the opportunity to share or store AA rewards, which aided CVR growth at both retailers.
- Featured placements: When The AA needed an extra push, sage investments in highly visible ‘hero’ placements were deployed. On Currys for example, as customers buying in the ‘computing’ category drive some of The AA’s best customers, it was logical to buy hero placements to guarantee higher visibility with this audience.
By opting for a less conventional partner, The AA managed to target millions of customers at the point of purchase, right when they were in the buying mindset.
The results
The AA wanted brand partnerships to replace a significant chunk of contributions from cashback publishers, thereby diversifying its income and unlocking a powerful new acquisition channel. It did just that.
Monthly acquisition targets on both Screwfix and Currys were consistently met, with results in 2024 showing rapid growth:
Screwfix sales:
October: +56% vs target
November: +204% vs target
Currys sales:
October: +41% vs target
November: +125% vs target
Among the driving forces were the tactical investments in featured inventory for customers purchasing items in specific product categories. These led to a 78% jump in The AA’s CVR at Screwfix from October to November. Looking at a four-month average, the CVR far exceeded that of The AA’s other marketing channels, like pay-per-click advertising.
The contribution from brand partnerships meant that in December 2024, cashback sales as a proportion of The AA’s total programme revenue dropped by half despite sales for the partner type being up 19% year on year.
“We’ve definitely seen an increase in ‘switcher’ customers within affiliates in the past few years. To improve retention, we had to find environments where customers aren’t primarily looking for deals.
“We’ve never been able to access so many relevant customers so quickly. Brand partnerships have been pivotal to a fantastic 2024 across acquisition, retention, and diversification.”
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