Performance marketing as an effective tool for solving specific problems

Performance marketing: the benefits and characteristics of the direction

Performance marketing is a combination of different tools to achieve the goals of increasing the number of customers and profits. The main difference in this direction is that it is used to realize specific goals for a specific period of time. The effectiveness of this approach can be changed in available ways, such as ROMI or CPA metrics.

When it comes to increasing sales, performance marketing is included, which has specific methods to solve the problem. Of course, this goal can be achieved with other tools, such as building a positive brand image or increasing loyalty. But in this case, the increase in sales will occur in the long term, which is not always suitable for a business.

Performance marketing has a number of features that distinguish it from other tools for promotion.

1. Measurability. Here you can clearly see the key KPI, which will help to understand how effective this or that approach is. This allows marketers to adjust the promotion strategy in a timely manner and monitor how the budget is spent. The performance approach makes it possible to measure project payback, profitability levels, the number of new leads, and much more. All these are key indicators, not intermediate ones. 
2. The “here and now” principle. Performance marketing allows you to quickly see the result of investments in promotion, which makes the activities of marketers more flexible and protects them from large losses.
3. Aiming at a specific task. All actions carried out within performance marketing have a specific purpose. Accordingly, only those tools are used for this purpose whose efficiency can be easily measured.

Performance marketing is liked by customers because when it is used, they pay solely for the result, not for the volume of work. In this case, the cooperation has clear terms of the task and a specified deadline for its completion.

An important point in performance marketing is the creation of a strategy. The first thing to start with is setting goals. And in this case, the metrics and KPIs are defined at once. Next, experts conduct an analysis of the business, its characteristics, and its target audience. Such actions help to determine the tools and channels which will help to achieve the set goals. An important stage is the development of a media plan, which details the actions for each tool.

To assess the effectiveness of performance marketing is carried out every month, for this analysis is carried out for each indicator, and compares the result with the values in the previous period. To understand the effect of seasonality, the values of the same period of time, but in the past year are also taken into account.

The key channels for promotion in performance marketing are SMM, media advertising, SEO, and email marketing. They show excellent effectiveness and are well-measurable.

Performance marketing is a great tool if you need to get a specific result for a certain period. It is distinguished by the transparency of the application and a clear list of works, which customers like.