In the context of Digital Marketing, Performance Marketing is a practical science whose professionals perform tests and use statistical data to create, advertise, analyze and optimize paid ad campaigns. The ultimate goal is to continually improve the conversion of one or more sales channels, including e-commerce.
Performance Marketing has tools that make it possible to measure the impact of campaigns and make changes in real time. In this way, more than just advertising, it makes it possible to improve the performance of ads and sales pages. Thus, it allows you to generate more leads, customers and customers than more traditional methods.
Check out in this article which are the main tools of this science. Find out how testing and analysis of campaign results are performed. Learn how to use Performance Marketing in your e-commerce!
- Access and also read the post “Marketing Automation Platform”. Discover, in this way, 5 useful resources to optimize the performance of your e-commerce.
PERFORMANCE MARKETING TOOLS
Performance Marketing tools are known as Performance Media. They are paid ad platforms that generally work through auctions. So, all you as an advertiser need to do is create an ad and set a monetary bid to advertise it.
Then, the platform selects the ads with the best quality and highest bid and exposes them in a privileged way to the audience you chose. That is, if there are more advertisers, the platform will present the most qualified ads within the auction rules first. captain?
These are, for example, performance media platforms:
- on search engines: Google Ads, Bing Ads, Yahoo Ads, UOL Ads, etc.;
- On the social networks: Facebook Ads, Twitter Ads, LinkedIn Ads, Instagram Ads, YouTube Ads, etc.
To advertise through these systems, it is first necessary to access the online homepage of each one of them or the chosen system and register. Then create your first ad, run it, and measure the results. But how to do it?
HOW TO MEASURE AND OPTIMIZE RESULTS IN PERFORMANCE MEDIA?
To measure the performance of your ads and campaigns on Performance Media, you should use metrics. To optimize results, you need to use Key Performance Indicators (KPIs) . But what are these two tools?
A metric is a variable parameter that allows for the comparison of performance. Well-known metrics include the Number of Unique Visitors, the Lead Conversion Rate, and the Sales Conversion Rate, for example.
In each of the metrics it is possible to integrate a KPI, which is nothing more than a number that must be surpassed or “beaten” in a certain period of time. In other words, a KPI is a goal.
Example of Metric integrated with KPI
Let's say you have an online store and one of your sales pages received 100 visitors yesterday, but only 1 purchased. The metric there is the Sales Conversion Rate, which in this case is 1%. Knowing this, the next step is to optimize this result. But in what way?
Simple, you create a KPI and try to beat it. The KPI described in the phrase “Make the Conversion Rate 2% today”, for example, increases the performance of the previous day by 1%. That is, you will need to make 2 sales today with the same number of visitors as yesterday.
Finally, remember that each KPI must be accompanied by optimization tasks. The tasks indicate what must be done for the optimization to happen and the best results to appear.
In our case, we could create tasks such as "Improve ad quality", "Improve the product description on the sales page", "Improve the usability of the sales page", "Increase the number of payment methods", "Reduce the shipping price” and so on.
Other important metrics
In addition to the Sales Conversion Rate, you must also measure and optimize the rates of Impressions, Clicks, Engagements, Lead Conversion, New Customers, Loyal Customers, Average Ticket, Unique Visitors, Upselling Conversion, Cross-selling Conversion, etc.
Integrate a KPI into each metric and try to beat it. Stipulate daily, weekly, monthly and yearly KPIs if desired. That way, you can control your e-commerce scientifically at all times and get better results in every aspect.
Getting data to measure, control and optimize
Performance Media platforms have systems that account for most of the metrics. In addition, it is possible to integrate analytical software such as Google Analytics, for example. You will also be able to use data from your OMS, ERP, CRM systems, among others.
HOW TO USE PERFORMANCE MARKETING IN YOUR E-COMMERCE?
There are basically two ways to use Performance Marketing in your e-commerce business. The first is to hire a Digital Marketing Manager and a team of assistants to plan and execute the service using your company's resources.
The most affordable way, however, is to hire a performance agency, which already comes with hardware, software and trained employees for the process. So you don't have to buy programs, pay labor charges, training and maintenance, etc., but only the campaign price and the agency's fees. Much easier, isn't it?
- Access and also read the article “Performance Agency”. So, get to know a little more about this type of company before hiring.
