Do you know what performance marketing is? The term performance marketing is half a year, as in the language of every "lazy". What is this dish and what is it usually eaten with?

Yesterday I saw a post on Facebook:

Load oranges in barrels

If you do not see blatant nonsense, let's quote from the screenshot:

Checklist for Finding a Contractor to Boost Your Bank Account

Trying to talk about the economy, the bank account, the growth of business indicators, is only reasonable if you have knowledge in the field of economics. The economy says that it is possible to increase a bank account simply by a creditor or by a decrease in the profitability of transactions and oh, by the colossal costs of promotion, which make the business itself unprofitable. What's the point of "increasing the account" of a company?

And what does SEO-performance and S.E.Advertising have to do with all this?

Well, what kind of nonsense is publicly climbing from Internet marketers ?! Gentlemen, Internet advertisers and website promoters, when you sit down to write such texts, do you open a dictionary of business, economics and marketing terms?

In the article from which this screenshot is taken, the author defines the concept of "performance marketing" that he applied:

Recall that performance marketing is an approach to managing Internet marketing aimed at achieving real business goals.

Dear Internet Marketers! Coming to the customer, you, about the real goals of his business, cannot even have a clue. Do you even know that the goal of "profitability" may simply be absent from the company. A business may have a goal of capitalization or scalability. The fact that the owner has a task to increase capitalization, enter an IPO or sell a business, you have no idea!

Digital performance marketing agency to access bank account client! Do you feel "load"!? About the nonsense that Internet advertisers sometimes publish,. Now, I believe that you will be more careful with economics and profitability that are unfamiliar to you!

But how ridiculous and absurd is the concept of performance marketing, invented and cultivated in the digital environment, let's figure it out.

What is the term performance marketing in the digital company environment?

In fact, in marketing environment such concept as "performance-based advertising" is used. It has been used for a long time - ever since the concept of contextual advertising came into use. Knows this term and the Western Internet, they know the dictionaries of Internet advertising and Wikipedia. If you try to translate this term, then "performance-based" means "based on indicators (on numbers)". The word "advertising" means - "advertising". While not disputing the concept of "performance-based advertising" itself, its meaning is that any advertising on the Internet must be counted. The advertiser should pay for advertising only when there are measurable and clearly understood figures.

They know dictionaries, "Western sources" and the concept of "performance". Moreover, the term "performance" is common in Russian and far beyond the digital sphere, and, as one might expect, "performance" is not the same as performance-based".

Thus, there is the word "performance", and there is the phrase "performance-based". The term "performance-marketing" is not in dictionaries and other primary sources!

And then what about the countless pseudo-practical conversations among SEAs and SEOs about performance marketing?

So how did performance-based advertising evolve into performance marketing for performance agencies?

In 2008, the media communication group VivaKi misinterpreted the term performance-baset advertising and the public, from the understanding that "marketing is cooler than advertising", proposed the option "effective marketing", which, however, failed to gain a foothold in professional environment, but it had a devastating impact on the fledgling minds of digital specialists!
The fact is that the very concept of "effective marketing" is meaningless and stupid. Dear digital advertisers...

The whole team and each of the marketers in the company works on the effectiveness of marketing. Marketing cannot be ineffective - what the hell is it, otherwise, is it needed!? A "productive marketer" is as funny as a non-successful football player (and the "non-successful" players took to the field just to run around?). The phrase "performance marketing" is as silly as the phrase "driving car," "writer who can write," or "web-savvy marketer." There is no other marketing, except for the effective one - there are non-effective managers.

And so, marketing is always effective. There is the concept of performance-based advertising, but there is no concept of performance marketing. What does the word performance actually mean?

What is a performance?

or like this:


To the attention of the author of the post and to the attention of colleagues, the term "performance" in the Russian language has a quite specific and well-established definition. Performance (when written like this, in Russian) - form contemporary art, based on the action of the artist, in which the object of art is only an excuse to demonstrate the process of creativity in a certain place and at a certain time. At the same time, the consumer is a contemplator of the creation of an object of art.

To see how art is created is the goal of the consumer, this is performance.

Let me quote a nasty anecdote that is in circulation among students of art universities, which quite intelligibly explains what "performance" is:

If you first ring the professor's doorbell and, in front of his eyes, shit under the door, this is called a performance. And if you first spoil, and then call - this is already called an installation.

Friends, puffing out their cheeks, echoing what others have said without even trying to look at the source - this is today the norm of communication with people of Internet agencies! Is there performance at all in marketing?

What is performance in marketing?

Let's use cases, I think that this is how everything will immediately become clear: performance in marketing- this is when the future owner of a Lamborghini, Ferrari or Tesla car sits at the factory behind glass in an armchair with a bottle of whiskey, and in front of him his future car is manually assembled for him, and a pretty model tells him in colors how the horseradish cedar grew, from which they are now cutting out a lid for him ashtrays. So "sell", for example, items.


Another example. There are goods that cannot be sold without performance. How to sell "a miracle thing for cooking in just half an hour without oil, water and salt? Aha! Got it, yes, what am I talking about?

Performance is an indispensable tool for the sale of TV stores, show programs with elements of advertising on TV, the sale of complex equipment, when the visualization of the process of using the marketing object and demonstrating the performance results of such use causes a burning desire to purchase it.

Performance is also used in trade marketing. For example, in order to involve the consumer, he is invited to take part in the performance. The IQ team that promoted Ax deodorant came up with interesting idea and developed a special design - mounted the cans in special racks and placed them in the men's toilets.

Another example: to show the merits of their cleaning product, at promotions in the Baltics, Reckitt Benckizer offered shoppers to launder money - if you dip coins in a cleaning agent, they become almost like new.

Producers resort to performance. There is a webcam on the Internet with a view of the Ostankino sausage shop. The all-seeing eye observes and demonstrates how the sausage is cooked. The same applies to Good Wood, a manufacturer of country houses made of timber. The picture from the camera installed in their production is accompanied by a running line indicating which numbered order is currently being processed at the production site and the customer sees the execution of his order with his own eyes.

Friends, this is marketing performance! In marketing, performances are developed and used by special people and entire agencies. Who creates, plans and conducts performances in order to better satisfy the consumer?

What is a performance marketing agency?

Companies that organize performances are called performance agencies.
What is included in the scope of performance agencies? First of all, this is everything that belongs to this area. marketing communications, as events, business events, shows, MICE, party organization.

Event in performance format for marketing

Performance brought the effect of complicity to the field of advertising marketing - bright and emotional events in the show format involve the audience in a relationship with a product or service. Performance is relevant and in demand as a form modern communication between seller, product and buyer. The performance has two waves of impact on the audience, which is important from a marketing point of view
a) the performance affects those present at the time of the event;
b) the performance affects the audience watching the video filmed during the event.

What is the mistake of digital performance marketers?

1. There is no term "performance marketing", equal to the term "performance-based advertising" because, so that SEO and SEA specialists do not think about themselves, marketing is aimed at customer satisfaction and sales - a universal metric of a comprehensive marketing work ! LTV, sales revenue, number of sales - these are the marketing quality metrics, and not at all leads, clicks, conversions, "cost-per-crap" and other advertising nonsense. All marketers know this!
2. Another of the tasks of marketing is to satisfy the market demand for goods and services as much as possible. Qualitative and Quantitative Metrics satisfaction with goods and services also exist: the number of checks with the promoted product, the number of repeat sales, the number of sales of new products under the promoted brand. If someone says that he knows how to consider the effectiveness of marketing as something special - he is mistaken or lying!
3. There are no performance marketers - as marketers who know how to do marketing better and more efficiently, because there is no other marketing than effective. Ineffective "marketing" is simply not paid, so it does not exist.
4. Advertising is not marketing. Advertising is just a part of the communicative whale, one of the marketing tools. Advertising alone, without other marketing tools (product creation, trade marketing, pricing) does not lead to marketing goals. by yourself advertising does not replace marketing.
5. Digital advertisers: SEAs, SEOs, SMMs, SPAmers they have little knowledge not only in the creation, positioning and promotion of goods and services, but they understand little even in offline advertising. That is why they are not only not the best, but absolutely narrow specialists in one of the areas of Internet management.
6. The concept of "performance", written exactly like this - in Russian, before your birth is defined completely different than "performance-based advertising". No marketing education, at least learn English!
7. Performance can be used as one of the elements of a qualitative enhancement of the advertising impact, but "sculpting" the word performance, not even for advertising, but for the very concept of "marketing" - is illiterate!
8. Dear digital advertisers! You are not engaged in branding, you do not know how to create products and do not understand how a product differs from a product. You are not familiar with the mechanics of trade marketing. You are not marketers! If you are already doing high-quality performance-based advertising on the Internet, continue to do it calmly and efficiently. No need to try on a crown on your head without taking off your hat with earflaps.

And the key for advertisers of agencies that sell their services to the market. WITH the above is understood by all without exception marketing specialists, marketing directors and business owners who have a higher marketing or economic education, many years of work experience and just life experience. So they understand all this, and you come to them, bring nonsense about a "performance agency" with you and try to "sell" them your ability to just do advertising on the Internet with this sour mash.

On investments in the company K50, which develops a platform for managing advertising.

Georgy Ternovsky, CEO of K50, wrote a column for the CPU about what changes await the contextual advertising market, what performance marketing is and why the banking industry, along with Travel, is the most savvy in terms of contextual advertising.

The word “crisis” is already so tired that I will try to use it as rarely as possible, although the material, in principle, is about our difficult time. And, in my opinion, the contextual advertising industry, which even now is predicted to grow by 10% annually in 2015, should be one of the first to adapt to new realities.

In recent months, I have been actively looking for projects with a normal sales funnel, when data is stored in the CRM system in the context of the keyword for which the purchase was made, and where data on repeated and additional sales throughout the life of the user. This is necessary to start managing bids in Yandex.Direct systems and Google AdWords with an understanding of the exact profit on a key request, and not at the level of "far-fetched indicators".

Over the past quarter, more than a hundred large advertisers have gone through this search, and only two have a normal funnel with an acceptable margin of error, which really can't be helped. At the same time, most agencies say that their profile is performance marketing, and most advertisers think that the transition from working on CPO to ROI is cool.

This is really good, but not enough for 2015 - we should all fly on skateboards, and we still ride on a homemade board.

Let's understand the concepts.

performance marketing- the direction of advertising on the Internet (first of all, contextual and advertising on price platforms), aimed at the most transparent ratio between the budget for the channel and actual sales. In a normal approach - sales determine the budget for advertising.

CPO (CPA, CPL)- cost per order (action, lead) - outdated, but still the most massive KPI of the Russian beau monde of advertisers. I recalled the story of how my friend was fulfilling a transaction plan for a startup that recently left us: plastic cups, forks and other goods up to 300 rubles in the special placement of Yandex and Google gave an excellent CPO indicator, but the business was not brought to good.

ROI- return on investment in advertising, the top thought of most experts. And really, it wouldn't be so bad. If every fifth advertiser counted ROI from revenue, and not from turnover. Or, for example, it would be based not on the average margin for a store or service, but on the actual margin data for each keyword.

Up to data on repeat purchases, at least for a year in the context of the keyword, none of the projects I know reached. I'm almost sure that a couple of projects in Travel do this, otherwise they would have closed long ago at their lowest margin.

Why is this happening? Or why the author, if such D "Artagnan, did not do it himself? All because there is little competition, and dumping in Yandex.Market is the main model of competition in Russian e-commerce, and this industry is one of the most advanced. But nothing, this year will fix everything, and soon we will have a real performance marketing.

Now I will try, mainly based on fragmentary experience, to formulate the main claims to the market in the context of industries.

Banks

Probably the most advanced industry, on a par with Travel. But Travel is simpler - 99% of orders are online, the main thing is to calculate LTV - and everything is already cool. In banks, serious financiers still break through a cool approach, working with data on user history, the level of loan refusals for a specific keyword. Why don't you have a flying skateboard?

For example, Tinkoff Bank uses one of the most advanced PPC performance tracking solutions I've seen over the past year, and many banks copy this approach.

But dynamic call tracking (CallTouch and others) costs much less than 10 banks - and it's not a fact that the data is uploaded to CRM.

My usual dialogue with a client looks like this (although it goes much softer, so hereinafter in the text the dialogues are from my head, but this is the meaning. But I want to speak just so harshly, but my upbringing does not allow - this is actually the idea of ​​​​the article) :

Deposits are opened only by calls, and not through the form. Yes?
(Client) - Yes!
- Don't need deposits?
- Needed.
- Why don't you put call tracking?
- We have a branded phone number.
- And name it by heart ...
- I don't remember him, but I understand it all, but the leadership doesn't really understand it. (In fact, what is dynamic call-tracking, most often he himself does not understand)
- Explain, or the management will explain to you, that in the country there is such a situation that there will be no redundancy benefits. And somehow they will understand you, probably, that’s how they built the bank, it’s not “forks in special accommodation” for you.

In general, the banks are doing well, however, only those few banks that advertise constantly in the main positions, and not these that conduct advertising campaigns on the Internet for a period of two months. As they said in my childhood: "If it weren't for people like you, people like us, there would be where people like them are."

Car dealers, real estate and others who work on contacts

2014 was a breakthrough year for these segments. Previously, they bought traffic, now they set up dynamic call trackers, chats and track the number and cost of calls (call + chat + request). But the dialogue is also heavy.

Why didn't they go further?
(Client)- Where else?
- You can already track deals and margin...
- For what?
- Well, to manage rates in contextual advertising.
- Oh, that's good, yes, that's what we want. True, our deals have a long cycle. Sometimes up to a year.
- Are you going to work here for less than a year?
- No, but our CRM does not allow integration, it has been set up (written) there for a year and a half, but I will not go to programmers.
- Go to management.
(Further as with the bank)

Let's digress a little and return to the sounded concepts.

Dynamic call tracking- a system for tracking calls by keyword. Undoubtedly, the key and most correct trend of the past year.

(Client)- And what should I buy, 10 thousand numbers?
- No, 10 thousand numbers are not needed, the system substitutes numbers only for those who are currently on the site. From 10 to 30 numbers is enough to count really big advertisers.
- Error?
- 5%-10%.
- It's a lot!
- Yes, I understand that now you have zero error. You are buying traffic. In general, such advertisers usually have indicators sometimes 10 times higher.
(Then usually about the brand number begins and about the terrible management)

LTV- life time value (there is also the concept of cost per buyer) - the profit that the attracted user will bring during the "life", that is, while he interacts with your Internet business, and, accordingly, the cost of such a user.

Startups and startups

There is a lot of understanding and ideas here. True, the lifespan of an average startup usually does not allow time to calculate LTV. Well, where are you - businesses with corporate parties in honor of the 10th and 20th anniversary? You can! I know it's late, but better than never. Just don't be lazy. Your analysts can do everything and can do everything. They just need to be persistently asked.

Other

I have little experience with other industries. But I think it's even worse. It's just a causal relationship.

E-commerce

Here is the most difficult case. Those who should be the first, in principle, are the worst.

Performance marketing is marketing focused on results and increasing sales. It allows you to see specific quantitative indicators of the result of each individual marketing area. You can find out the cost of a site visitor, application, call, order and end customer, as well as the return on investment in marketing - ROMI (Return of Marketing Investment). More Russian companies claim to work in this manner. But in fact it is not so. In the article we tell you what performance marketing is and what it really is not.

How has performance marketing changed?

Was it impossible to measure anything before the performance in Internet marketing? After all, it existed before, and with the help of it you can measure the effectiveness of any user action, and today you can also track the path of the client and calculate the dates and the fact of contact of a particular user with your company. So what's new in performance marketing?

Just another sales scheme

This approach arose when SEO began to sell poorly - companies needed to stay afloat. Then the agencies gradually began to introduce new payment schemes, and clients were offered to pay for:

• traffic growth;
• bringing the site to the top;
• increase in site conversion;
• increasing the return on contextual advertising;
• separate development of the site;
• increasing brand awareness;
• increase the number of leads and calls.

Later, all this became boring and customers became smarter, and this is where performance marketing appeared. Marketers said: “We can guarantee to increase sales via the Internet! We will do analytics until the return on investment from each channel and make advertising work!”

This is an evolution that has taken years. But it's one thing to talk, and quite another to really count.

The sales funnel that everyone fell for

Even counting life value client (simplified - the amount of money that he brought you for all the time), we often encounter the fact that the market has a limited size, and this is especially true for complex goods and services. There are a limited number of highly profitable clients. Customer profitability can vary greatly. Even with the same lifetime value, different cohorts of customers can have different returns. This also needs to be taken into account.

(red line - CLV, blue bars - profit)

Problem 4. Limited audience choice

After disabling ads in contextual networks, Internet agencies cannot compensate for the drop in sales through organic search results. This just shows the inferiority of the approach of working only with contextual advertising without building a full-fledged Internet marketing system.

Problem 5. Working only with formed demand

The schemes that most Internet agencies use are not designed to work with unformed, competitive and related demand. As a result, you will not have a communication strategy and recommendations (this is not direct paid advertising).

Problem 6. Targeting a one-time primary sale

For some reason, Internet marketers in Russia, when they achieve a primary sale, consider their duty fulfilled and do nothing else. However, the initial sale is only the beginning of a long customer cycle (see the Customer Journey at the beginning of this article). Therefore, CPA, CPO indicators are often insufficient. Receiving and counting the initial order for a normal strong business is not enough.

Problem 7. Incomplete analytics before sales

In Russia, few people are familiar with the term “before the sale”, although this is exactly the starting point that allows you to conduct a deep analysis of the effectiveness of your business. This requires a link with sales accounting systems, for example, the implementation of a CRM system. We need a personalized system that will allow us to produce structural web analytics before the sale.

Case. Performance for a construction company

From theory to practice. Let's analyze the principle of real performance marketing (or, as we call it, systemic electronic marketing) on ​​the Internet of a company with a dealer network.

Suppose you are selling Construction Materials through the site. At a minimum, your customers have 8 stages of decision making. These are users who:

1. We have not decided on the material for the facade cladding.
2. Undecided on the type of siding.
3. Haven't decided on a manufacturer.
4. They are at the stage of selecting a color scheme for the facade.
5. Ready to buy a particular brand of siding and looking for the best selling points.
6. Interested in installing siding (want to install it themselves).
7. They form a search demand for professional installation services (we firmly decided to order installation).
8. Express a clear intention to purchase a particular brand of siding.

If you make a system of website pages or landing pages that will work like an elevator: determine at what stage a person is and move him to the next stage - this will be performance: a well-thought-out marketing system that measures everything.

After all, we already know how a person chooses siding, we recorded the data in CRM, recorded it in shipments of siding from the warehouse, in Google Analytics, combined it with GTM and began to manage advertising campaigns that we upload through the data of this system - we have a search engine, we have an advertising channel, there is Universal Analytics, there is GTM (Google Tag Manager), there is Mailchimp (or any other similar service), a set of letters, pages, banners and advertising sections have been created for each stage.

There is only one problem: to do this, for each system you will have to create a lot of banners, text ads and videos. But by bringing everything into a self-written table, where there is a client ID of the user, you can see at what stage the client is, you can follow how people move through the stages and influence the decision to purchase.

Case. Performance for a large dealer network

If you have a network of dealer centers and a factory site that does not sell (or can sell, but all requests go to dealers), you will have to create a CRM with a call center that receives calls and requests from a single head site and dealer sites. Dealers will also need to build a special system in which all orders will be visible. But when they take the request in the future, it will be taken from the warehouse, the system will contact the manufacturer's warehouse and note that the request has been completed. There will even be control over the fact that the installer nevertheless installed this product and the client was satisfied (or not satisfied).

To build such a complex, you need to take the following steps:

1. Create single network dealer sites.
2. Connect IP-telephony to the entire network.
3. “Hook” stores to your personal account for booking products through 1C.
4. Connect the bonus card system.
5. Make it possible to book stock balances.
6. Connect auto offices.
7. Link everything with Google Analytics and reporting system.
8. Connect everything to the call center.
9. "Run in" the system.

But only when all dealers are connected to unified system, all customers from advertising channels will get to single base, and dealers and sub-dealers to interact with the product booking system with a single call center, only then will real complex electronic marketing be implemented (try ordering something like this from performance agencies).

❤ Do you sell through sales representatives? We have ready-made solutions for companies with partner networks - an online sales system that brings 4 million rubles per year profit our clients. Consists of CRM, personal accounts, network sites, telephony and other chips

Russian specifics: you go to a client to do only a website, but you still do all the marketing, sales and automation

The specifics of performance for B2B and dealer networks that there is no simple solution, and in order for Internet marketing to work, you need to thoroughly study business processes and build automation. For example, there are clients who have 36 audience segments, and each segment should have its own advertising campaign and its own sales funnel. Therefore, an illusion arises - now we will order Performance, and the market is ours. Yes, if you haven’t measured anything before and suddenly started marking applications, that’s great. But in terms of marketing, nothing has changed for you, you just began to see the result. It's good, but it's not enough.

A high-quality performance marketing agency will provide you with call tracking, set events for all forms on the site, and tell you what requests come from certain advertising channels and how much is spent on them. As a result, the agency will leave the effective channels, modernize the ineffective ones, and remove the inefficient ones. It will even make reports on operators: who and how many applications received by phone. Isn't it a miracle? No. All this could have been done back in 2007 and earlier.

100 measurements is not enough

What is the conclusion from this? To work with Performance, it is not enough to measure. Collect data and use this data to interact with people at different stages of decision making.

We at Completo do not tell our clients what we will do for them in performance marketing. We study the client’s business system for a long and tedious time, and only then we talk about how to solve business problems using the Internet. This also includes telephony, CRM, automation of various processes, work with dealers and planning. We work with each client for 3-4 years - there are well-defined steps, and we go through them together with the client. The result is a well-built system, which is the real Performance that works.

David Ogilvie

What is performance marketing?

performance-based marketing - is marketing aimed at results, increasing sales. hallmark it is the ability to see a specific quantitative indicator at all stages of work, which will reflect the result of the work of each individual marketing area, for example, the cost of a site visitor, application, call, order and the final cost of attracting a customer who has bought, and of course the return on investment in marketing - ROMI ( Return of Marketing Investment).

iConText's clients get increased sales from marketing investment, not just impressions, clicks or CTR. In fact, payment occurs for a visible result that is directly related to a specific business: from increasing the number of applications on the site to optimizing the return on investment or internal metrics that come only to CRM.

We initially immerse ourselves in the business processes of clients and select the most effective online promotion channels specifically for their business, determine the scope of marketing tasks and find tools to solve them.

What gives performance?

Orientation to the performance approach allows us to focus on tasks that lead to maximum results and require minimal costs from the client. The main aspect is the measurability of marketing results at all stages of the funnel, from the first contact of a potential client to the purchase of a product or service. Such control gives an understanding of the efforts that are bearing fruit.

Stages of work in performance marketing

Why choose us?

1. We evaluate quantitative KPIs relevant to a specific business. For example, the cost of achieving goals and the forecast by quantity. We focus both on experience in the industry and on the knowledge base accumulated over 13 years.
2. We introduce you to the strategy for solving the tasks. We offer you a description of the approach to work, detailing the stages of communication, citing concrete examples from the industry or category, we substantiate the declared indicators.
3. We have really great experience with performance campaigns in which we consistently achieve high results. (link to cases)
4. Proven professionalism. To achieve maximum results, we use advertising campaign automation systems and advanced tools for their analysis and optimization. Our employees are certified and experienced specialists in all the tools that we use in our work:

Team of highly qualified specialists. To solve the problems of your project, a team of specialists is allocated who provide maximum marketing performance. Even before the start of joint work, you can get acquainted personally with our key managers and clarify in advance any issues of placement and web analytics.

How to get the most out of online marketing? Make all advertising channels work together. To fully recoup every ruble invested in online promotion, all tools must serve one purpose - to increase sales and return on investment. Performance marketing can help you achieve this. The principle of this method is best described by the words of the advertising classic:

What's wrong with good old digital marketing?

Each online tool gives a business an important advantage - the ability to study in detail all sorts of indicators of its work. You just need to correctly determine which of them are important in each case, and then bring everything together.

Despite this, until recently, Internet services in the hands of most webmasters were not much different from ordinary outdoor advertising and radio advertising, where only a few measured anything besides coverage. Of course, over time, it was replaced by more or less specific indicators. Specialists are armed with such methods for evaluating the effectiveness of the channels used, such as:

• CTR (click through rate) of contextual advertising;
• site position and organic traffic volume from search engines;
• growth, reach and activity of subscribers in in social networks, site visits, etc.

Performance marketing is the next stage of this evolutionary process. Agree, by themselves, all these fundamental metrics have little to do with the real needs of your business. They only matter if you have a performance strategy that answers the questions that many Internet marketers are trying so hard to avoid: what will be the result of using this or that channel, how will it affect the company's income, will the investment in the chosen tools be profitable?

How performance marketing works: a step-by-step plan

For development effective strategy will have to abandon the usual universal metrics. At the forefront in the implementation of a performance strategy are always real business goals, expressed in a specific quantitative equivalent. To achieve them, you will need to work out the process of working with customers step by step:

Task	KPIs
1. Identify or generate a need and propose a solution. The purpose of this stage is to first form and expand demand, and then offer a solution to the resulting audience. At this stage, it is important to create a need in the buyer. Then you need to convey information about your product to him through various kinds online advertising and performance marketing tools	Percentage increase in demand; the percentage of coverage of the formed audience
2. Attract and retain an audience. Now the main task is to involve potential buyers received at the first stage. To do this, you need to properly build work on content marketing, contextual advertising and reputation management on the Internet.	The volume of incoming targeted traffic to content distribution points, behavioral characteristics: viewing time and depth, bounce rate, number of subscriptions
3. Convert Leads to Sales. Here it is important to achieve maximum conversion, work on pending orders and sales after returning the goods using remarketing	CR (conversion rate); the number of all sales; number of sales through remarketing tools; the number of other activities that lead to sales
4. Increase loyalty. After the sale of the product, you need to use services to retain and return the buyer to work with his impression of the company and product. The goal is to increase average check, ensure repeat sales and referral sales	LTV (total profit from one client); CRV (money earned through referrals); the ratio of positive and negative reviews

As you may have noticed, one of the features of performance marketing is measurability. key indicators at every stage of the project. In addition, separate sets of solutions and tools are formed to work with buyers at all of the above steps: landing pages, a series of banners, email newsletters, video materials, scripts, etc. are created.

What KPIs are used and what do they mean?

The application of performance based marketing can be extremely variable. The strategy can be used to drive sales, measurable business engagement, and track ROI across digital channels. This is where performance metrics come into play.

ROI (Return Of Investments). The most exciting question for businesses is the return on investment indicator, which shows whether the advertising campaign is paying off and whether the performance strategy is effective. Calculation formula:

ROI = (sales revenue - marketing investment) / marketing investment x 100%

Here is a simple example:

LTV ( Lifetime Value) . Reflects the total profit from one client. Calculation formula:

LTV = average cost per sale x average number of sales per month
x middle period retention of one customer
LTV = 1200 rub. x 2 sales x 3 months = 7200 rubles.

C.A.C. ( Customer Acquisition cost). The amount it costs a business to acquire a customer. Of course, the lower the CAC value, the better. Calculation formula:

CAC = Marketing Costs / Number of Acquired Customers
CAC = 225,000 rubles / 170 clients = 1323 rubles.

At the same time, it should be taken into account that CAC can only be assessed in comparison with LTV. Everything is simple here: with LTV equal to 7200 rubles and CAC - 1323 rubles, the ratio will be 5.4. In this case, everything is just fine. But if your LTV/CAC is approaching 1/1, we recommend that you take this as a sign to take emergency action.

CPA (Cost Per Action). Reflects the cost of the target action. Calculation formula:

CPI (Cost Per Install). The cost of installing the application by the client. Calculation formula:

CPO (Cost Per Order). Reflects how much advertising costs before the sale is made. Calculation formula:

Overview of the main tools of performance marketing

The choice of technologies for implementing a performance strategy depends on the goals of a particular project and the needs of customers - a combination of SEO and SEA for these tasks is not always enough. Here, other digital tools come to their aid:

Mobile marketing. When implementing performance based marketing in 2018 about mobile traffic need to think first. According to Admitad, mobile users already account for 58% of all traffic, and 38% of all online purchases are made from smartphones.

Email marketing. Among all performance marketing tools, this is the most versatile and inexpensive way to remind yourself. It is great for returning a customer and generating repeat sales, as well as for creating trigger mailings (for example, to remind a customer about an abandoned cart).

Native advertising. "Natural" advertising content that organically fits into the content of the site. It is no different from full-fledged publications, it allows you to post any media content (videos, links, etc.), improve your attitude towards the company and the product, and cannot be blocked by AdBlock.

Social Media Marketing. Has two important qualities: firstly, it allows you to return the buyer to the site, acting "on its territory", and secondly, it makes it possible to work with negative reviews and build communications with customers in an informal setting.

Remarketing. When working with the site, it is impossible to avoid losing some of the visitors. The best way remind those who have already visited your site about yourself - use retargeting technologies to display ads on other sites or in mobile applications.

Marketplaces. Various aggregators and trading platforms are becoming increasingly important among performance marketing tools. Back in 2017, they allowed ecommerce projects to receive up to 10% of sales thanks to referral traffic.

Just imagine that all these tools and stages of interaction with customers can work for the main goals of your business at the same time and together! It's no surprise that today performance marketing is considered to be one of the most effective and challenging ways of online promotion.