Achieving marketing success with performance marketing and storytelling
What is Performance Marketing?
Performance marketing is a marketing strategy that leads to measurable responses. The focus here is therefore on measurable interactions of the target group within a campaign. For example, link clicks (how often an inserted link is opened), the conversion rate (conversion of website visitors to new customers or orders) and impressions (how often a user had visual contact with a post, website or ad) are analyzed here. The main purpose of performance marketing is to attract new customers and retain existing ones.
To achieve this goal, different means of communication are used, which can be measured and optimized independently of each other. Performance marketing is focused on reach, interaction and transaction.
What are the benefits of performance marketing?
Performance marketing is becoming more and more interesting for more and more companies and is seen as an integral part of their marketing strategy. Why is this becoming more and more popular?
A major advantage of performance marketing is the measurability of the campaign. The campaign is designed from the outset to generate measurable successes and to optimize these afterwards. The measurability makes it easier for companies to draw detailed conclusions and plan possible changes. This simultaneously develops the next advantage: the optimization is target-oriented.
The measurability directly reveals potential problems and a company knows exactly what points they need to work on to increase success. In addition, companies have the opportunity to optimize measures in real time, as these can also be monitored in real time.
he measurability of the campaign as well as the quick reaction to possible successes and failures are the biggest advantages of a performance campaign.
The right influencer for performance marketing
Performance marketing campaigns are usually carried out and planned in cooperation with influencers. But how do companies find the right influencer for their purposes?
When searching for a suitable influencer, it is important to place quality above quantity. The number of followers should not be a decisive point for selecting or not selecting an influencer. Much more important is the connection and relationship between the influencer and the community. This relationship should be cultivated in order to generate a high engagement rate. This makes the campaign look authentic and credible.
Another important factor is the “fit” between the brand and the influencer. The values of the influencer and the values of the company or brand should be in harmony with each other. Authentic storytelling is crucial for conveying these values.
Companies should ask themselves: Who suits us? Who has experience with our company or our brand, or where do we see the potential of the influencer in cooperation with our company? Who is particularly authentic?
The right influencer is important for implementing successful performance campaigns and bringing products or services authentically to customers.
For performance-driven collaborations, there are three different ways to set compensation. What are they?
How much compensation does the Influencer receive for which service?
This is the most common method of compensation for influencer performance campaigns. Here, it is determined at the beginning of the campaign how much the influencer will be paid for which performance. It does not matter how successfully the influencer implements the campaign.
The remuneration in this method depends on the performance of the influencer. If the influencer generates a lot of sales for the company, the remuneration is higher at the same time. However, this is adjusted accordingly if the influencer generates fewer sales.
Here, it is determined in advance how large the share for the influencer will be, for example, per sales.
The hybrid model is a mixture of fixed fee and performance-based. Here, the amount for which the respective influencer is remunerated is determined at the beginning of the campaign, regardless of the success of the influencer’s performance. In addition, however, it is possible to earn more through, for example, more sales than specified.
Top three tips for performance marketing with influencers
- The collaborations should be entered into on the basis of the company’s goals and tell an authentic story. Here it is important to clearly define the goals of the company and compare them with the values of the influencer to ensure authenticity.
- The deal terms, i.e. the remuneration, should be determined on the basis of the campaign idea. Here, it is important to boldly deviate from the influencer’s proposal and find a suitable solution together.
- In addition to point two, it is important to remain fair in the negotiation. No one should sell themselves below their own value, neither influencers nor companies. Communication and the relationship among each other are important here in order to come to a common denominator.
Performance marketing offers companies a lot of opportunities to generate success quickly and cost-effectively and to optimize their own measures. Here it is important to always keep the company’s goals and the campaign goals in mind and to adapt them to the cooperation with the influencer. In addition, the choice of the influencer should be made carefully and it is important to establish a relationship between the influencer and the company.
For even more information and a best practice example from our exclusive blogger @kates.diary with Gymondo, Germany’s leading online fitness platform, we’ve created a guide and included all the important knowledge, tips and explanations.
And for those who prefer to listen instead of reading: Our founder Sebastian and our Head of Campaign Marie joined Jenny Song Schmidt and Linda Krüger from Gymondo to discuss performance marketing exclusively on our podcast “What the Infl***ncer?!“.