Performance marketing means different things for different companies and marketers. For some, this involves all expenditure that is incurred in calculating ROIs, for others it involves just handling some specific aspects.
Description of performance marketing for a typical Internet user may look the following way: it is a marketing direction that helps to estimate profit from every taken action or parameter (cost of a call, site visiting, etc). If you know this data, you can take more effective methods that will smooth the way to improve the general result.
If you have read the passage attentively, you will certainly ask a question: isn’t it a common practice? How can it be that marketers don’t count the cost for each client? Well, guys, you may be unhappily surprised, but not all marketing specialists can boast they have an exact date of each separate item cost.
Common practice looks as follows: the whole budget is divided into equal parts to the directions requiring money and then the funds work until coming to an end. Then the next sprint is started. Mainly the whole buzz is around creative, promotions and new playgrounds opening. Not so many specialists involved really care about the digits or waive aside that marketing is not an exact science and a lot depends on the human factor.
But, is it really so?
On the example of this article, we can tell you that the situation can be easily changed to your benefits. Let’s see. After posting the materials for you, we have to count really a lot of data. For example, how many people have read the post, who reposted it on social media, which links were clicked and so on? This data itself is unlikely to tell me anything. But. If we see that you copied too quickly with the article, we will add some more useful information to the text, if people leave very soon after reading the material – it is a sign that article should be rewritten.
The approach of performance marketing
First of all, we should face the problem in front of the customer. Some of them may not even notice they actually have a problem.
Next step is about choice. Obviously, when we see or feel that something is wrong we seek a way out of such a situation. Persistence is the key here, otherwise, your competitors will win you.
At this stage, the client is to collect information about possible solutions, available variants and so on. After comparing, your client has chosen several options and it is the time when we should be very careful.
A purchase is the next, but not final, stage.
At the after-sales period, the client estimates the product he obtained, its qualities, and the services he was offered from the company’s side.
The model seems to be absolutely ordinary, but the difference here is that the cost of all taken actions and the client himself is counted at every stage.
Mind, performance marketing platforms is highly oriented on goals making. Depending on what you want to achieve, other factors like places for advertising will be offered. The tools for each strategy can be different, or they can be implemented in another way in terms of different desirable results.
How to use performance marketing?
The general idea here is to eliminate unnecessary or ineffective methods. But before the estimation, all current tools, methods, and approaches should be carefully checked.
Performance approach implies the following steps:
Deepening into client’s business to understand the specificity of the area and current business state.
Define metrics to estimate the results of the work. They should correspond to business type and ads goals.
Correction of the methods used. Quite often all changes are done in real time mode as if the methods selected before didn’t work, new ones should be offered immediately.
Results prognosis. Business is not the place where unexpected spending is welcomed, detailed planning and forecasting are very important skills for marketers.
To sum up, we can say that performance marketing was designed mainly for big or reach companies, otherwise this approach will be too ruinous for a small business. But local firms still can use basic principle: develop working methods and get rid of those that are scene-stealers and offer nothing. In terms of its applications, performance marketing is much in vogue in various digital marketing strategies. Even when you look at social media, there is a performance marketing component built into it.