In advance of Shop.org’s upcoming webinar on successful strategies for today’s affiliate marketing programs, we asked affiliate guru Shawn Collins to share his thoughts on the ever-changing role this type of marketing plays in a constantly evolving medium, who’s who (and successful) in the affiliate marketing space and a few tried and true tips to help jump start any affiliate program. Read on for Collins’ insightful answers.

During Shop.org’s Online Marketing Month, you’ll be moderating a session on 7 Steps for a Successful Affiliate Program in 2011. What’s different now compared with affiliate programs a year ago?

Affiliates are constantly innovating. There has been an increased usage of pay-per-call, as well as incorporating video and mobile apps by affiliates.

You’ve composed several resources for newbies and non-retailers on how to earn money as affiliate marketers. Any tips for retailers on how to take advantage of outside sources who are essentially doing their marketing for them?

Retailers should think of their affiliates as their extended sales force, and provide them with the tools and information they need to properly market the company. Just as you would give an employee resources and guidance to succeed with your company, provide the affiliates with a guide to effectively promote your company with details such as your best sellers, target demographic, etc.

Which retail brands are getting affiliate marketing right? Is there a commonality between those brands that signal successful strategies?

Amazon, Buy.com, and Zappos have all been effective and successful for a long time with their affiliates programs, because they have invested in those programs with staffing and tools to foster relationships with affiliates and provide them with the resources they need. The companies that treat affiliate marketing as an investment, rather than an expense, are the ones that excel.

How has the impact of social media changed affiliate marketing?

Social media has opened up affiliate marketing for more people to participate, but some of it has been one-dimensional and junky. Affiliates should serve some purpose, whether it is to compare products, provide insightful reviews, or some other value proposition. When an affiliate just drops an affiliate link on Twitter, they are adding clutter. I wish affiliate programs and networks wouldn’t encourage that sort of tactic. But social media has also brought all sorts of innovations and ways to effectively target an audience, too.

What are best practices for retailers to balance internal SEO efforts with affiliates that may also play in the same space?

The most important thing is to have very clear policies, and to know how affiliates are promoting the company. There is no black and white when it comes to the best policies. Some companies are willing to allow affiliates to use their brands in title tags, domains, etc., while others impose restrictions on this sort of behavior. In the end, it’s most important to only grow an affiliate program to the point where you know who’s who and what they’re doing.

What are some strategies to drive affiliate performance besides deals and coupons?

Some that I have personally done are text product reviews, video product reviews, offline marketing with postcards, paid search, and relevant text links in original content. I am planning to break into the use of product data feeds with original content and mobile apps this year.

What types of technologies do you use for your own affiliate efforts?

My affiliate sites are all in WordPress these days. I started out writing the HTML for all of my sites, but switched to WordPress in recent years to better scale up my number of sites. I also build email lists, create videos, and drive traffic via social networking sites.

If you weren’t an affiliate marketer, what would you do for a living?

The basis for all of my affiliate sites is original content that I create. I love writing, and still have plans to knock out the “great American novel” at some point. I think I would be a newspaper writer if affiliate marketing didn’t come along, and maybe I still will at some point.

In light of the company’s success, we reached out to CEO Glen Senk for our next Talking With… profile. In the Q&A, Senk touches on how social media is changing word-of-mouth advertising, which retail brands he finds inspiring, and the key to staying profitable in a shaky economy.

Glen Senk, CEO of Urban Outfitters, Inc.

Urban Outfitters, Inc. isn’t just one brand – it’s five brands that represent fashion, home goods and even garden under one large umbrella. What are the benefits and challenges of representing so many diverse brands?

The benefit is the diversity – I’m constantly inspired by the evolving and distinct voices in our company. Each brand is different, and compelling, and changing, and that keeps things very fresh and always interesting.

Of course, with diversity comes complexity, and it is a challenge to help each brand grow simultaneously in a way that’s specifically right for them and their customer. But that exact challenge is also what makes my job so fun.

During your keynote at Shop.org’s Annual Summit in September, you’ll talk about about how your company uses technologies to reach consumers in all channels. Can you offer one or two nuggets in advance that you’ll be discussing?

I’ll plan to talk about our evolution as a company – that is, how we started as a bricks and mortar operation and the process by which we entered new channels. I’ll also talk about why we value multichannel retailing, what it means to our customer, and I’ll dive into the operational philosophy that connects our stores, catalog, and web into one seamless user experience.

What are your opinions on social media and how – or if – it’s changing the game for retailers?

Social networking is word of mouth on steroids. Can you control word of mouth? It’s almost impossible. But we believe that if we do our job, if we’re constantly focused on wowing our customer, then we shouldn’t have to worry about controlling what he or she blogs or tweets or reviews or posts about us on Facebook.

Now, social media is a relatively new phenomenon and it does take some getting used to – for a long time, marketing was something that was thoughtfully crafted and carefully controlled. That approach still exists today, of course, but the web has created a degree of transparency that gives much more power to the consumer. As a company that loves its customer and values his and her opinion, we welcome that change enthusiastically.

A recent report by Forbes stated that revenue per square foot for Anthropologie stores has historically been one of the highest in the industry. What’s the secret to your success?

Although it’s a statistic I’m very proud of, we don’t go about it as a goal. Rather, we focus our energies on the customer experience: innovating, making beautiful products, really pushing the limits of our brand expression and constantly refining how we operate. Revenue per square foot is the result of that focus, rather than the starting point or motivation.

As a multichannel CEO, what’s your best piece of advice for managing the customer relationship at each touchpoint: in store, on the web and through communication channels?

The most important thing is to always put the customer first, regardless of the channel. As the CEO, it’s critical to communicate our values and our philosophy so that the information cascades to the individuals within each channel who actively engage in a dialog with the customer.

The recession has hit some retailers very hard, but in the first quarter of 2010, URBN  posted a 72% profit increase. From a management perspective, what changes have you made throughout the past year that speak for the increase?

I think the key is that we hire people who embrace change. So when economic conditions necessitated fast, strategic maneuvering, everyone pulled together in remarkable fashion and exercised the financial discipline and creativity necessary to operate responsibly while continuing to amaze our customers.

We made changes to our inventory composition on a dime; we challenged our design, production, and buying teams to create styles our customer couldn’t help but fall in love with – we leveraged every facet of our business to streamline all of our processes, but also to let loose creatively. Everyone pitched in and, as a result, we more than weathered the storm, we flourished.

Which retail companies or other retail executives do you look to for inspiration?

I’m impressed with Apple’s inventiveness and aesthetic, Trader Joe’s originality, Amazon’s ease of use, Chanel’s commitment to beauty, and 1st Dibs user experience and product assortment.

I’ve read about a few recent design ventures that Urban Outfitters is undertaking including Space 15 Twenty, “a collaborative space where fashion, art and music collide.” You’ve also made changes to an Upper West Side store featuring the old school look of New York City retail. Talk about the concept behind these two ventures.

Part of the Urban Outfitters appeal, today and historically, is that no two stores are alike. We believe in change and we believe in honoring what’s special about a given geography or city. To a large extent, that’s precisely what those two store concepts are about: keeping things fresh, unique, unexpected, and right for where they are and what customers we hope will walk through the door.

What keeps you up at night?

I actually sleep pretty well, but this is a business in a constant state of change, and that kind of movement is, for me, a real source of excitement. So if I am awake at night, it’s likely because I’m excited about some new idea, or plan, or hire, rather than anxious.

What word do you hope comes to mind when customers think of the URBN customer experience?

Our customer base is so eclectic, as are our brands; it’s hard to pick a single word that I’d imagine every customer would associate with us. But I would hope that customers would describe us as genuine, engaged, smart, customer centric, personalized, and creative.

What’s the best piece of advice you can offer to someone beginning a career in retail?

Become indispensable, take risks, stay humble, and learn every aspect of the business.

You’ve made a business at, and written several successful books about, helping retailers and consumer product companies leverage the Internet and social media to tell their stories. Tell me a few really cool things happening right now at your company.

One of our main tenets is that social media is the new gateway to the brand. We’re continually researching, innovating, beta testing—all in the interest of innovating and pushing our work. We’ve created the RI:Lab, which is our R&D laboratory that’s focused in innovation, futuring and emerging platforms. We’re amidst a big push into mobile—WAP sites, couponing, etc. and our first iPhone app is launching any day now, with many more in the works. And soon we’ll begin testing The OPEN Hub, a private and secure social network for our clients. 2009 has been very good to us—not just through internal innovations; we’ve also had the great fortune of adding some really exciting new brands to our client roster.

You talk frequently about “open brands.” How can a retailer open its brand and why would they want to?

Open brands are strategically opened, emphasizing one or two consumer experiences that represent the most value. O.P.E.N. (On-demand, Personal, Engaging and Networked) is a framework for creating such experiences. Ultimately, an open brand is relevant and participatory—driven by consumer expectations and unmet needs and desires.

Brands have to find their sweet spot through a careful assessment to determine what’s right for them. For example, one retailer may highlight the Engaging experience (ENOP) and another might call out the Personal experience (PONE). We use an Open Brand Scorecard to evaluate brands and determine the best approach.

As for why brands should open up—there are 5 simple reasons, that we refer to as the “5 R’s”: Revenue, ROI, R&D, Relevance and Relationships. Recruiting is a bonus.

What recommendation would you give to a company trying to understand how to use Facebook or Twitter to communicate with customers?

There’s no one-size-fits-all prescription. Do your homework. Understand how your customers want to communicate. Look for opportunities to support, connect or delight consumers. There are lots of great case studies emerging. Use your agencies to get smart or network with peers to share…experiment, test and learn.

You talk a lot with consumers to try to get their insights on shopping and understand their behaviors. Based on those conversations, how you think customers have changed since the recession and when will retailers start to see spending rebound?

Consumer confidence is paramount in any downturn. They are weighing their options a little more heavily, searching harder for the best prices. Ultimately, they need more decision support. Retailers will surely see spending rebound, but if they really want to move the consumer off the dime, it’s time for true innovation.

The real question on everyone’s mind is whether consumer behavior has changed for good. We’re actually further researching this topic for the Annual Summit—are consumers recession-rewired or is their frugality temporary?—so stay tuned. My Shop.org Summit keynote will shine a spotlight on how urgently retailers need innovative new solutions that lower barriers to buying.

Do you see retailers missing any opportunities online? If so, what are they?

Well, we need to start viewing the destination website as akin to the flagship store for a brand. It’s the dispersed experiences that do the heavy lifting. Think about how digital can enable, create and connect the consumer journey.

That being said, I think retailers haven’t even scratched the surface of the potential social networks or mobile. Both channels are claiming their share of consumers’ time and no one has truly tapped into their power…yet.

If you had to make a list of three “retailers to watch,” what companies would you list?

As I mentioned before, it’s about social media and mobile integration. The ones to watch are the ones who are beginning to unravel the secrets…Apple, QVC, Amazon, and Victoria’s Secret PINK.

I also like how outdoor retailers like REI and Backcountry.com are integrating social media into their online experiences. I just received a printed “catalog-like” publication from Backcountry.com that was highlighting some of their most popular products, but all content, ratings and reviews, articles, etc. were repurposed from ONLINE community members.

In a recent blog post you wrote about paying attention, not only to what you do in a given workday but who you’re surrounded by. It seems you’ve worked with some pretty incredible people throughout your career. What can potential employees look for that will provide insight on “who” a company really is? On the flip side, how can people and hiring managers get it “right”?

Potential employees should really seek to understand the culture, the values, of an organization and how decisions are made (and empowered). Does the company have an ambitious vision—beyond revenue growth? Is there passion in the ranks?

Hiring managers need to look way beyond the resume. Seek attitude over aptitude. Is this person a self starter, leader AND a team player and can I learn from him or her? At the end of the day, can I trust this person, can I travel with this person, can I be confident that he/she will care about doing great work?

To have incredible people around you, you have to seek them out and always raise the bar–-and you will continue to upgrade talent naturally.

Tell me three goals you have over the next twelve months.

-More deeply understand the new (frugal) consumer—globally
-Strengthen our agency’s long-term competitive advantage
-Continue to find ways to uniquely connect with my kids, Luke (he’s 13) and my daughter Riley. She’s 10.

Several months ago, USA Today featured photos from the Resource Interactive headquarters in a story about pet-friendly workplaces. Can you talk about how this culture got started and your philosophies about pets at work?

We have always had a culture of inclusion, and that includes associates’ pets…I can’t remember a time we didn’t have them in the office. Pets are an important part of people’s lives – we respect that. Not to mention, they bring such a lively dimension to the workplace. Interestingly, we’ve never had issues with barking or messes or major distractions—it all just works out.

You always seem to be going a mile a minute. How do you unwind?

I’ve learned to compartmentalize, to draw boundaries. When Friday comes to a close, you have to claim your weekend for yourself and your family. Step away from the email, and close the door to work for awhile.

During the week, I run in the morning when my family is sleeping. It clears my head and psyches me up for the day. I also go to bed by 9:30 on Friday night, and wake up for yoga on Saturday morning. I typically nap on Sunday afternoon or flip through mindless magazines. It’s great.

Connect with Kelly:

• LinkedIn
• Blog

And, earlier this week, Amazon provided their own insight into the holiday season. Their Q4 guidance is for between 6% and 23% revenue growth. That’s quite a big range, but expected given the volatility of our economy.  I would expect that the range for most retailers’ projections are equally wide.

So what can retailers do to push their sales to the high range of their forecasts besides hoping for fewer headlines about the Dow plummeting and layoffs?  This won’t be a popular suggestion, but my recommendation is to offer free shipping (of course, not everyone agrees with me on this). The rough economy is pushing people to shop online looking for savings. If the savings are cancelled out by shipping costs, customers will be disappointed. Maybe they’ll go to a store, which isn’t bad if you have stores, but maybe they’ll decide not to buy at all.

Of course there are many other tactics and strategies retailers can employ. To hear a dozen plus of these ideas, Shop.org members should carve out an hour and fifteen minutes on November 12 to plug into the “14+ Specific Things You Can Do To Make More Money Next Week (and Improve Your Holiday Sales) webinar.  This Webinar will also feature an economic overview presented by comScore’s Gian Fulgoni. 

If you can’t wait until November 12, feel free to download (members only) the “24+ Specific Things You Can Do To Make More Money Next Week,” presentation from the Annual Summit.

Shop.org Members should also check out the Holiday section of the Shop.org Web site, which includes a great overview of recommendations for holiday 2008.  Written by Fiona Swerdlow, Shop.org’s head of research, the 2008 Holiday Planning and Strategy Guide is chock full of data points and recommendatoins based on the learnings from last year’s holiday study.