In today’s world, there is no such thing as traditional marketing. With the rise of digital marketing and social media, marketers must be thinking outside of the box to be effective.
Performance marketing is a term adopted by marketers to describe their strategy of analyzing activity on social media to determine which approach will be the most successful in a given market situation. Most marketers classify performance marketing as part of customer experience (CX) marketing, but it also incorporates elements of digital marketing and social media. Simply put, performance marketing is the use of data and analytics to drive marketing decisions, marketing strategy, and tactical execution.
1. Measure the right metrics
The first step in any performance marketing strategy is to measure the right metrics. In the early stages of optimization, it is essential to monitor and analyze several performance indicators, such as conversion rates, ROI (return on investment), and more.
While you don’t need to have all of these stats perfectly in place to begin with, you should have enough data to make informed decisions. To get started, it is advisable to examine the analytics available for your website. In the event that you have a traditional shopify store, you can use Google Analytics to track the performance of your website. If you use a digital marketing agency to optimize your marketing campaigns, they will have access to all of this data and can provide you with valuable insights into the state of your account.
2. Use data-backed decision-making to drive strategy
Decision-making in the modern-day marketing world is heavily data-driven. This means that marketing analytics, as a tool, is used to drive strategy and tactical execution. This methodology ensures that marketing decision-making is based on facts and figures, and not hunches or instincts.
To put it simply, decision-making in marketing is very different from the way it was years ago. Back in the day, a marketer would draw a pie chart and present it to the CEO. The CEO would look at it and, based on previous experience and gut feelings, would make a decision.
With the massive rise of data-driven marketing, the pie chart is now obsolete. Today, a company’s marketing analytics platform, preferably in a SaaS (software as a service) format, serves as the foundation for all marketing decision-making.
This brings us to our next point.
3. Build a marketing analytics platform
If you want to be able to make informed decisions and be able to track the effectiveness of your marketing efforts, it is essential to build a marketing analytics platform. A marketing analytics platform, also known as an SMART (specific, measurable, achievable, realistic, and timely) platform, is a collection of software and systems designed to track, analyze, and report on key performance indicators (KPIs) that reveal a website’s, social media’s, or mobile app’s performance.
Why is a marketing analytics platform so crucial? The simple answer is that without one, you cannot guarantee that you are making educated decisions about which marketing methods are producing the best results. It is also the case that without one, it is very difficult to determine, on a regular basis, the exact performance of your marketing efforts. Having a solid analytics platform allows you to track the effectiveness of your marketing methods and determine which ones are generating the most revenue and, therefore, which ones you should continue to focus on. In the event that you can prove, with hard numbers, that your organic Facebook posts are generating the most leads, you can rest assured that you are providing your audience with the best possible experience.
4. Identify key performance indicators (KPIs)
After you have established a base level of analytics and begun to track metric after metric, it is time to zero in on specific areas of interest and begin identifying key performance indicators (KPIs).
A KPI, in the world of marketing, is a metric that reveals the performance of a given marketing activity, channel, or strategy. In other words, a KPI measures the performance of a marketing strategy (for example, a marketing campaign) or channel (i.e., social media).
Once you have a small number of KPIs in place, it is a good idea to begin creating sub-KPIs. A sub-KPI is a statistic or measurement that reveals the performance of a specific approach, method, or technique used to achieve a given KPI. For example, if your goal is to increase web traffic to your website, you can create a KPI for monthly unique visitors and another sub-KPI for daily unique visitors. Then, you can measure the performance of your web content and your social media strategy with these sub-KPIs.
Why should you track these metrics? Simply put, without them, it is very difficult, if not impossible, to determine the effectiveness of your advertising and marketing efforts.
5. Create long-term and short-term objectives
Marketing plans, whether they are strategic or tactical, should always have goals and objectives. However, due to the fluid nature of marketing, these plans should be revised on a regular basis.
With the exception of very short-term plans, such as those that are relevant only during a limited time frame, marketing plans should be fashioned so that they are measurable. This can be a challenging task, especially if you are not sure how to go about it. One way of doing this is to set both long-term and short-term goals, as well as objectives, for each phase of the plan and then track these metrics regularly. Doing this shows you the progress that you are making toward your goal and provides you with the information that you need to make informed decisions about your marketing strategy.
The above tips should help you begin crafting a solid marketing strategy, but it also depends on how experienced you are and what your personal goals are. If you want to be able to perform marketing effectively, you will have to take the time to figure out what works best for you and begin building a plan around these variables.