How to Succeed in Performance Marketing
There are many online ecommerce websites, some fail in succeeding and some become multibillion dollar business with several branches around the world. You wonder how you cannot be one of them? You do SEO, some PPC, but how do they do it? They do performance marketing right. it is a win-win deal between merchant and retailer. In the world of eCommerce, if you don’t build your sales with coupons and loyalty sites first, then the road to success in your ecommerce business gets tougher.
Many online shopping websites have not understood the significance of performance marketing. Running an eCommerce business in any niche doesn’t end with only doing SEO and PPC. Those who became multibillion dollar/euro business in Europe and North America used a lucrative performance marketing strategy from the beginning.
Many people make mistake between affiliate marketing and performance marketing. These are not the same thing, although the processes look similar. When you pay a percentage of the money to your affiliate marketing partner or publisher when sales is completed, you can feel confident that your money is being well spent since you are already converting your target audience before they pay for the transaction. In performance marketing you track website traffic, website conversion, customer value, and tracking
What is the secret recipe to performance marketing campaign?
First you should build your sales with coupon and loyalty sites and then branch out with content, influencer marketing and artificial intelligence performance-based marketing.
It is all about marketing based on performance. Back in the day companies used mostly affiliate marketing but now some do performance marketing and the other companies continue doing affiliate marketing.
How performance marketing works today? It works through apps, influencers’ blogs that have large email lists, plugins and conversion optimization tools.
Suppliers and providers get more exposure through performance marketing campaigns. The truth is that Performance Marketing is like Affiliate Marketing but bigger more powerful but less expensive.
What kind of niches can have success in performance marketing? Websites in fashion and cosmetics can be successful in their business if they use performance marketing.
Today buyers don’t buy an item online right away. They do research on that product first such as: looking to influencers, online shoppers’ recommendations, YouTube reviews, reviews on affiliate websites, discounts and if they are ready and trust the product only then they make a purchase decision.
In Europe and North America coupon websites are a great way to generate sales with little effort and through lower commission payouts.
Using Influencers can also boost sales, because they want to feed their readers and audience with genuine products that can solve a problem. They want to give their audience their authentic personal experiences about certain products.
Influencers’ payment model is based on pay per click. So when they add a product or service on their blog or channel, they get paid when someone clicks at the product and lands on a landing page. Some others get between 20% to 30% commission if someone buys a product through their blog, Instagram channel or YouTube channel.
While one provider might use one strategy, others might use multiple areas within a larger “Performance Marketing” umbrella to fulfill their goals.
Some use retailers as their affiliates and some others use native advertising or sponsored content strategy and social media marketing.
The benefits of performance marketing are that it is traceable, measurable and transparent. Because it is based on paid per acquisition. It is cost effective!
Performance Marketing Contains:
- Create a quality landing page
- Do A/B testing for driving in sales
- Choose a reputable traffic source
- Track and monitor each channel’s performance
- Networking and building relationship with affiliates
Performance Marketing Trend in 2021
- Email Marketing
- Influencer Marketing
- Pay Per Click
- A.I based marketing automation: Implementation of artificial Intelligence and machine learning on marketing automation tools
- A.I based tracking tools
Final takeaway
Performance Marketing helps reduce cost by scaling up cost per click, increase in conversion through affiliate and influecers’ websites and blogs, increase users’ engagement, lower the cost of marketing and increases ROI.
You build a sustainable brand though working with publishers and affiliate companies. This is why If you run a clothing or cosmetic business, then you should be doing multichannel performance marketing in order to succeed today.
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