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BW Businessworld

How Performance Marketing Is Reinventing Marketing ROI?

Being a comprehensive online advertising strategy, performance marketing offers a win-win opportunity to the retailer and affiliate that results in performance-based high-ROI.

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Performance marketing is on a continuous rise. A huge chunk of the marketing budget is allocated according to the core principles of performance marketing. It includes personalised interactions aimed at customer expectations and specific needs. To achieve marketing success, CMOs are merging traditional and digital marketing technologies to drive conversion and purchase.  

Generating revenue through available marketing channels remains the core of any business. Being a comprehensive online advertising strategy, performance marketing offers a win-win opportunity to the retailer and affiliate that results in performance-based high-ROI. It allows the retailer to pay the affiliate when a specific action is taken which is one of the most preferred customer acquisition strategies available in the fast-paced markets today. Furthermore, the retailer receives value-added benefits including brand exposure by paying only for the desired action.  

The demand for marketing ROI

Marketing ROI encompasses multiple facets that often misinterpret with campaign-specific ROI. Businesses search for new methods to generate revenue. This leads to tightening the budget and building pressure on CMOs to look for revenue-generating streams and justify their efforts and investments.  

The theory of marketing ROI is simple and straightforward. It requires measuring it thoroughly and knowing it to make informed decisions. It can be achieved through a continuous focus on a comprehensive revenue-based marketing approach that also ensures an accurate sales forecast. Thus, it is essential to have metrics that are actionable rather than justifying marketing efforts. A holistic marketing campaign must comprise of campaign idea– including its performance, channel performance– such as brand awareness and reach, and business impact – for revenue growth and long-term customer acquisition.   

Performance-based marketing is crucial for marketing ROI. There are specific ways that marketers should incorporate to boost overall marketing ROI.   

Understanding the value of data 

Data-driven marketing has evolved over the years from measuring simple rates to analysing complex big data. It is the foundation for planning and analysing performance marketing strategies.It assists the marketing teams to identify the target audience persona and develop messaging specific to their target audience groups. According to the research estimates provided by Forbes - half of the marketers practice data- driven practices, and 39% of businesses take benefit from the action taken based on customer data. 

Currently, the marketers are realising to make necessary adjustments to understand the critical measurements at the granular level. They are shifting their focus from monthly reports to weekly or even daily basis to make informed decisions purely based on insights. It promotes decision focused marketing to redefine campaign success and marketing ROI.  

Identifying customer behaviour

Customer behaviour is the psychological study of how they make their buying decision. It is based on what motivates them to make the purchase decision than selling a good or unique product. Successful marketing strategies are built on understanding customer behaviour insights.Bringing the external information on what customer wants, how they want it, and through which channel they will be approached is the foundation of any marketing success.Moreover, they leverage the customer behaviour data by accessibly viewing the customers’ engagement with competitors’ websites and digital marketing channels and how they influence their purchase behaviour.  

Marketers combine multiple tools to dig out the data that can help in understanding customer behaviour. They then apply the principles of performance marketing to influence the customers’ purchase decision that drives performance-based marketing ROI.  

Establishing ROI goals and aligning marketing channels

A performance-based marketing strategy is nothing without setting the ROI goals. This certainly means – what are the goals of the company for the next 6 months or a year? How much growth are they expecting? How many leads are they planning to close in a month? Setting such goals is imperative for organizations and once they are clear, it becomes easier for marketing teams to result in a higher ROI.  

After setting the goals, marketing teams figure out the right channels. Email marketing, SEO, PPC campaigns, Social media marketing, and Content marketing plays a critical role in achieving the goals. Hence, CMOs spend hours setting up realistic goals and expectations for the organization that can impact the team’s marketing efforts and drive ROI.  

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


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marketing digital marketing technologies marketing world

Yogita Tulsiani

M.D & Co-founder, iXceed Solutions (Global Tech-Recruiter Provider).

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