The internet forever altered the way that people search for and purchase products. Similarly, it also changed marketing and opened up doors that marketers could only previously have dreamed of.
Online shopping was already breaking records yearly, and the COVID-19 pandemic and consequent lockdowns sent those figures skyrocketing.
This, combined with the massive rise in omnichannel marketing, is creating a truly golden age for online shopping, one of which marketers should take full advantage of.
One highly effective, data-driven approach to online marketing is known as performance marketing. This is when ad companies and platforms charge advertisers for click-throughs and conversions. Then, performance marketing platforms are used to drive and measure those actions while attributing ROI to assets, campaigns, and activities.
Most businesses must focus on the bottom line instead of spending millions of dollars on branding to stay profitable. By using performance marketing, advertisers can regain control of their campaigns. Regardless of whether the action is a sale, lead, or click, they only pay when targets are reached.
Here are five ways to successfully harness the power of performance marketing.
1 – Prioritize First-Party Data
Marketers understand that their data is the best source of information. So collecting first-party data on your customers and targeting consumers for marketing will become a necessity rather than a nice-to-have, whether you’re looking to cross-sell products or create brand loyalty.
Many retailers have already begun gathering more first-party data at point-of-purchase or upon entering their stores.
Developing and sending personalized messages will also require segmenting the data you collect. For example, to build a stronger relationship with your users, you should know what they have bought, subscribed to, or requested more information about.
2 – Use Social Media Stories
In the wake of Snapchat Stories’ success, Instagram followed suit, and the format took off. After 24 hours, users’ Stories disappear from their profiles. Instead, users can post images and short captioned posts using the Stories feature.
One reason for its enormous popularity is its ephemeral nature, but they also appeal to our desire to tell stories. Keeping people hooked requires plenty of suspense.
It is always the case that brands go where they can find their audiences, but that does not necessarily mean that audiences are always interested in hearing from brands. To take advantage of this medium, companies must employ strategic approaches.
Here are some tips for getting the most out of Stories:
- Avoid corporate tones: The Stories products don’t appeal to all companies because of their intimacy. Communicate with a human touch to your audience.
- Engage your audience with interactive tools: The goal is not to deliver an advertisement but to keep them engaged in your story. Engage and interact with your customers by using tools such as polls, stickers, and videos.
3 – Measure KPIs
To create a successful performance marketing campaign, you must measure your ads’ KPIs (key performance metrics).
A campaign can be measured in several ways. Among them are:
- The return on ad spend
- The cost per click
- The cost per acquisition
- The customer acquisition cost
- The conversion rate
- The impressions
- The quality and relevance score
The number of KPIs available can be overwhelming, so you must decide which ones are crucial to your campaign’s success. After you have determined your marketing goals, you must:
- Identify your key performance indicators
- Use them to track your campaign’s performance
- Based on your evaluation, optimize your campaign
4 – Harness The Power of Remarketing
One of its most significant selling points is that customer experience can be personalized through performance marketing. For example, an organization can tailor ads to customers based on their behavioral data through dynamic remarketing.
Retailers can use a product within their advertising creative to encourage customers to complete a purchase if they add a product to their cart but don’t proceed with the purchase. In addition to social media, search engines, and display advertising, remarketing ads can also be served through social media.
Remarketing campaigns have higher conversion rates than standard acquisition campaigns because the customer has already shown interest in the product before seeing the ad.
The following points will help you get started with dynamic remarketing.
- Make sure your remarketing ads include a compelling call to action: Display the product the customer is interested in but give them a reason to visit your site again.
- Frequency caps are helpful: We’ve all seen the same online ads too many times. Remarketing campaigns should have a frequency cap, so customers only see your ads once or twice a day.
5 – Create Relevant Content
You should tailor your educational and promotional content to meet your customers’ needs after identifying your audience. Also, avoid generic approaches and content fluff to ensure your message is heard.
Ensure your content also resonates with the various stages of your marketing funnel. It can negatively impact your performance-based marketing campaign’s conversion rates if you fail to do so.
Performance marketing is a highly effective strategy. Hopefully, the tips you’ve learned will help you make the most of it.