What is performance marketing? Performance-based marketing is result-oriented marketing for sales growth. A distinctive feature is the ability at all stages of work to see a specific quantitative indicator that will reflect the result of each individual marketing direction, for example, the cost of a site visitor, application, call, order and the final cost of attracting the customer who bought it. And, of course, ROI of marketing investments – ROMI (Return on Marketing Investment – connected with performance marketing definition).
The result is an increase in sales from performance marketing investments, and not just the number of views, clicks, or CTR. In fact, payment occurs for a visible result directly related to a specific business: from increasing the number of applications on the site to optimizing the return on investments or internal metrics that are received only in CRM.
We need to immerse ourselves in the business processes of our customers and select the most effective channels for promoting on the Internet specifically for their business, determine the area of tasks in marketing and find the tools to solve them.
What gives online performance marketing?
Focusing on the performance approach allows you to focus on tasks that lead to maximum results and require minimal costs from the client. The main aspect is the measurability of marketing results at all stages of the funnel, from the first contact of a potential client to the purchase of a product or service. Such control gives insight into the efforts.
The most tangible results of using performance marketing are achieved with relatively high advertising budgets.
Stages of work in performance marketing
- Immersion in the business of the customer. You need to get acquainted with the specifics of your products, sales system and current state of marketing. On the basis of this analysis further collaboration is to be built.
- Formation of a performance evaluation system, transparent for both you and the agency. Specialists work with certain KPI (key performance indicators), according to which you can evaluate the results of work. From the proposed options, you need to select the most optimal metrics or matrix of metrics that correspond to the industry or business category, identify and implement benchmarking and comparative evaluation systems for future advertising campaigns.
- Ensuring sales and results. After the launch of advertising, analysts evaluate the results and analyze them identifying what can work better and what should be discarded. Measurement and adjustment occur in parallel with the placement workflow: you need to know how much a potential customer costs at each stage of the sales funnel in each advertising channel.
- Evaluate quantitative KPIs relevant to a particular business. For example, the cost of achieving the goals and the forecast by quantity.
- Familiarize with the strategy of solving the tasks. This stage includes a description of the approach to work, detailing the stages of communication, citing specific examples from the industry or category, justify the stated indicators.
- Attract a team of professionals. To achieve maximum results, we use advertising campaign automation systems and advanced tools for analyzing and optimizing them.
If you are focused on results and efficiency, looking for the perfect advertising campaign, and partners you can trust, performance marketing is what you need.
Saying ‘performance’, we mean an approach in which all the possibilities of Internet marketing are used to achieve business objectives. This is a specific measurable result for an advertiser: for example, reduce the cost of attracting a client, reduce the cost of installing an application by 10%, increase the return on investment (ROI) by 20%, increase sales by 15%, etc. Planning any marketing action, marketer thinks about what will be the result for the business in conjunction with marketing, how it will measure and optimize it. In order to manage marketing, you need not only to track the result but also to be able to draw conclusions about what exactly led to it and how you can influence it in order to solve the set task.