How to leverage performance marketing for brand growth?

Authoured by Amitek Sinha, Co-founder & COO, of ET Medialabs

The outbreak of covid-19 pandemic has cast an impact on practically every industry. Especially if we talk about startups, they suffered a massive hit. Beginning a startup is already challenging and with the pandemic on top of it, startup owners had to go through a lot. Digitalization served as a beacon of light throughout these difficult times. Businesses, therefore, implemented a significant number of digital transformations to return to their previous condition of operation.

With digitalization in power, businesses came up with new, innovative marketing strategies serving the current needs of consumers, thereby ditching traditional practices. Specifically for startups, devising their marketing strategies became the need of the hour. Performance marketing stepped in at this point, giving startup entrepreneurs the chance to accomplish a specified business goal, assess their performance, and build a devoted customer base.

Performance marketing: Opening new avenues for startups

Performance marketing gives a startup company the ability to collect and evaluate real-time data insights in order to build a structure that is meant to focus on target consumers in order to accomplish desired results. With the help of a seamless combination of display, multimedia, smartphone, search, and social, startup founders can plan their campaigns with an eye towards a greater ROI that can be explicitly calculated.

The tremendous growth in internet users is causing a surge in brands which in turn is increasing the competition and putting the businesses under pressure to come up with unique marketing strategies. Here's where performance marketing comes into play since it allows the firms to monitor their brand's reach and integrate all of their marketing resources, which are crucial for managing scalable, continuous, and optimized campaigns for businesses. Additionally, this approach is seen to be the quickest means of gaining new customers and improving user experience and engagement.

Performance marketing strategies for startups

Engage with the target audience: The sole purpose of every startup is to create product awareness within their target market. Performance marketing is one such way to connect with potential customers in the right manner. It deals with promoting goods or services and assisting companies in forging strong bonds with their customers. Additionally, it provides startup owners with a greater understanding of consumer preferences which in return enables them to provide an ideal purchasing experience to the consumers.

Evaluating return on investment:

For a new firm, monitoring every indicator is essential, but gauging financial return is unquestionably more significant. Startups can occasionally experience growth through tracking return on investment over time. Additionally, knowing your returns assists startup business owners in organizing their operations accordingly and aiming at better returns.

Reducing CAC: Mathematically, CAC is defined as money spent on acquiring a new customer. Brands who are young in the journey should look at their marketing spends and divide it by the number of acquisitions received in the period. The CAC should be based on a unique identifier – either the Mobile Number of the customer, or the email ID.

Since the customer is considered the king of the market, everything revolves around their preferences. Especially for startups, understanding customer buying behavior is the key to achieving ideal business growth. CAC helps us understand the quality of the customer. Early on in the business many D2C brands are willing to function at a higher CAC if they are able to acquire loyal customers, who are more likely to repurchase from their brand. Additionally, interacting with customers primarily in the early phases can help the brand minimize CAC. In general, developing a client-oriented strategy might show to be much more advantageous for company owners in lowering costs associated with customer acquisition and development.

Final Takeaway!

For entrepreneurs looking to establish their brands, performance marketing has become indispensable. It enables new business owners to reach a predetermined business objective, evaluate their performance, and develop a devoted clientele.

The demand for firms to develop distinctive marketing strategies is expanding along with the competition, which is increasing as the number of brands increases. The concept of a distinctive marketing strategy is catered to by performance marketing since it enables businesses to track the reach of their brands and combine all of their marketing resources which are essential for running scalable, ongoing, and optimal campaigns for companies. The end goal of every startup is good reach and profit, so it is imperative that your business plans reflect that.

ET Medialabs is one such company that has been successfully capitalizing on performance marketing and branding in order to provide sustainable business growth to its partner brands. At ET Medialabs, we understand the importance of moving with time and ensure that we are result-driven and data-backed. Our daily reporting contains the full-funnel view of all campaigns across Google and Facebook and helps us make informed decisions to drive sustainable growth.