Does Performance-Based Marketing Fit to AnyBusiness?

Performance-based marketing is a business model where you pay online referrers to refer to your business. The referrers involved in this model are usually partner websites, affiliate marketers, web content publishers, etc. They collaborate with marketing players to encourage the prospects to take desired actions, such as for lead generation, closing sales, or filling up contact information.

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Naturally, marketer uses data collected to analyze the conversion process on one website and creates digital advertising model recommendation that match the client’s conversion goal. Seeing how effective performance-based marketing is, marketers in any sector have started using the approach to optimize their digital marketing profits. That being said, how beneficial is it exactly to the businesses? Keep reading to find out more!

Performance-Based Marketing for eCommerce

In eCommerce, performance-based marketing usually use the Cost-per-Sale (CPS) model and is formed by two elements: the affiliates or the publishers and the merchants. The affiliates will promote your products in various channels. They will then receive commission fee as the result of every purchase they have generated. On the other hand, the merchants are online businesses that hunt for more traffics and customers to increase online sales. By collaborating together, both the affiliates and merchants will benefit each other.

Performance-based marketing is also one of the most effective methods to invest in without costing you much. After all, the affiliates will get the commission once the results have come out. Moreover, this marketing method is very easy to track without additional costs. This is because programs used for performance-based marketing will show you the clicks, the views, and the sales they have generated on their respective channels or websites. Not only that, it also allows you to analyze the performance of the platforms and ad presents as well as the customer’s behavior.

Performance-Based Marketing for Travel Industry

To stand a chance in this competitive world, travel companies should find a marketing strategy that is relevant to today’s customer needs. That is why many travel companies work with performance-based marketing experts to help them go beyond the traditional marketing ways.

A study by Performance Horizon and WBR Digital stated that performance-based marketing is a comprehensive and concise method for travel brands. At the moment, the top 7{e56e98cffb3900b5e8849a3588d7fad4e42d0c2720d7b074b7ab4ed4811d4b0a} travel brands that go digital have generated 80{e56e98cffb3900b5e8849a3588d7fad4e42d0c2720d7b074b7ab4ed4811d4b0a} of their annual revenue all thanks to performance-based marketing programs. What’s more, the results are easy to track as well. You only have to prepare the right data and program managers and the expert will work it out for you so you can focus back on your business.

Performance-Based Marketing for Non-Profit Organizations

The expert in performance-based marketing strategies will help non-profit organizations raise awareness and donation in the process. They basically will raise the awareness on a particular issue by incorporating digital advertising campaign in hopes that people are willing to be involved in the organizations. With the increased awareness, non-profits will gain more spotlight in the digital world and generate more donations that support their causes.

Yappika is one non-profits organization example that implement performance-based marketing strategy to generate donators for their active campaign. Read more on how InboundID implements this digital marketing strategy to help Yappika to achieve their goal here.

Performance-Based Marketing for Healthcare Industries

Performance-based marketing will help healthcare industries gain more customers who are in need of healthcare services. In this case, a website is required as the main medium to generate more customers and increase conversion rates in return. Healthcare industries also can rely on sponsored content to reach out to the right audiences and increase the scoring. Practo, as an example, uses Cost-per-New-User model to market their service and generate appointment transactions on their website.

Performance-based marketing is very beneficial for a business that wants to increase their conversion rates. It is quite flexible so any business, from eCommerce to healthcare sector, can use it with the help of third party or digital marketing experts in the programs. What’s important to keep in mind is that performance-based marketing strategy will work well if your business has a clear conversion goal and customer journey to reach it.

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Sources:

linkedin.com/pulse/what-performance-based-marketing-advertisers-evan-weber-/
business.ebanx.com/en/blog/how-to-use-affiliate-marketing-to-improve-ecommerce-sales
inboundid.com/portfolio-items/yappika
inboundid.com/portfolio-items/practo
versamarketinginc.com/how-performance-based-marketing-is-taking-the-travel-industry-to-new-places/
econsultancy.com/blog/63820-ppc-agency-payment-models-performance-based

Access time: 3 March 2018