Performance marketing is the practice of using marketing tools and strategies like data-driven emails, websites, and social media to help drive customer acquisition costs further down the profit chain. The aim is to drive more sales from the customers that you already have. In other words, it’s about making your existing customers into brand evangelists, with the ultimate goal being reducing CAC (customer acquisition cost) and increasing LTV (lifetime value). It’s also known as up-sell or cross-selling, with the goal of getting customers to purchase more products from your business through various means such as online advertisements, emails and social media posts. An investment in performance marketing is often called ‘marketing 2.0’ because it uses data to optimise marketing efforts rather than simply throwing marketing dollars at a campaign hoping for a positive outcome.
The main benefits of performance marketing are:- Increased sales from existing customers:- Decreased CAC and/or increased LTV:- Increased customer satisfaction:- Increased customer lifetime value:- Increased brand awareness:- Reduced marketing costs: Performance marketing has been shown to increase sales by 10-30% by using data to optimise marketing efforts.
The main benefits of performance marketing are:- Increased sales from existing customers:- Decreased CAC and/or increased LTV:- Increased customer satisfaction:- Increased customer lifetime value:- Increased brand awareness:- Reduced marketing costs: Performance marketing has been shown to increase sales by 10-30% by using data to optimise marketing efforts.
- Increased sales from existing customers: By implementing performance marketing, businesses can increase their sales from existing customers by 20-30%.
- Increased customer satisfaction: By implementing performance marketing, customers experience a 20-30% increase in customer satisfaction.
- Increased marketing costs: While performance marketing can drive higher sales from existing customers, it does require more marketing spending upfront.
- Data-driven marketing: To be truly effective, performance marketing must be data-driven.
- Data-driven marketing: To be truly effective, performance marketing must be data-driven.
If your business is struggling to find ways to increase sales, a performance marketing strategy could be the answer. It’s important to understand that this type of marketing has been proven to increase sales and drive customer satisfaction. A successful performance marketing strategy will require data-driven marketing and a focus on increasing customers’ lifetime value.