With the right performance marketing channel, business owners will be able to efficiently reach out to their target audiences.
The Covid-19 pandemic has accelerated global businesses’ adoption of digital solutions and processes.
According to survey results released by tech giant Microsoft, and market research firm IDC Asia Pacific, 73% of Singapore organisations are accelerating the digitalisation pace in response to the pandemic.
In the report, Singapore business decision-makers believe that innovation is vital to their businesses’ success. Small and medium-sized enterprises (SMEs) need to adapt and adopt digital technology in their marketing strategies to remain competitive.
Business owners may be easily overwhelmed by the myriad of available digital solutions.
One may have even frequently heard the terms ‘digital marketing’ and ‘performance marketing’ used together or interchangeably. However, these terms are significantly different.
Performance Marketing vs Digital Marketing
Performance marketing falls under digital marketing – marketing that utilises online channels. The former uses a payment model that only requires clients’ payment after achieving their desired outcome.
Secondly, digital marketing – or online / Internet marketing – is a generic term that encompasses a variety of payment models, channels and strategies, while performance marketing can include optimising these strategies and channels. Critically, the decision of the payment model type defines the marketing strategy.
Thirdly, performance marketing strategies generally have shorter-term goals. Unlike digital marketing goals, performance marketing goals typically focus on easy-to-measure metrics like the number of leads generated.
The best approach for the SME business is then dependent on the brand’s idealistic business goals, marketing goals and culture.
What are the benefits of Performance Marketing?
Performance marketing is transparent, measurable and trackable. It allows ease of identifying suitable marketing channels and investment avenues for the brand.
Performance marketing is agile across various marketing channels. Its versatility helps to adapt the marketing strategy to reach and retarget their intended audiences. While testing their message across various marketing channels, business owners can have a comprehensive view of their campaign’s performance and use this information to finesse their marketing plans and achieve desired results
Performance marketing’s payment model is a more sensible choice for SMEs. Performance marketing’s payment is made only after the desired action occurs, hence ensuring lower Cost Per Acquisition (CPA) with higher Return on investment (ROI)
Performance marketing is definitely a great strategy for fast and visible results.
Just ask Suin Nguyen, founder of Suin Beauty Lounge, how she regained her momentum after her business was hit hard by the pandemic crisis.
Her business was heavily affected by the pandemic crisis as it lacked a strong branding and online presence, but relied on walk-in tourist customers and word-of-mouth referrals.
After a 30% drop in her overall revenue, she desperately turned to a performance marketing agency to revive her business.
Through implementing performance marketing campaigns, she optimized her sales performance and maximised her outreach to potential customers.
Her business has since seen a 40% increase in revenue growth with 30% of her customer profile being new clients. Her team also expanded with the addition of three beauty therapists.
No matter your brand’s positioning in the Performance marketing arena, there is always an area for growth.
Business owners should first outline their goals clearly and select their preferred marketing channels to target.
And along the way, business owners will have to track, measure and optimize the performance of their selected strategies.
The choice to persist or to change depends if the desired outcomes have been met.
With the right performance marketing channel, business owners will be able to efficiently reach out to their target audiences.
