Data has changed the face of performance marketing. Marketing managers are now able to track the customer journey better than ever before. Missed opportunities can happen when information is not acted upon. Knowing what you are trying to get out your performance campaign means that you can draw up some key performance indicators (KPIs) to measure how well or not partnerships are going.
KPIs are essential in determining the success of an performance campaign. They will tell you if a program has a high chance of succeeding when you choose the KPIs that indicate profitability and optimize your campaign.
KPIs may have an impact on your budget so doing the research is imperative in order to see what important indicators and what ones you should focus on.
Knowing what variables affect the others and what the factors are that influence your revenue will help you choose the right performance campaigns to promote. For this you need to monitor your performance metrics constantly and analyze how efficient all your performance partners are. By setting targets monthly and identifying the problem areas that need to be corrected, together with the contribution of your partners to your conversions, you can optimize your performance.
KPIs for performance marketing.
There are a lot of KPIs you can focus on, but some are more important than others.
Here are the most used KPIs indicators for your performance campaign
• Leads – You want performances that drive sales but keep in mind quality is always better than quantity.
• Conversion Rate – Conversion rate indicator is an important metric used in campaigns. It shows you how many people are completing a sale or an action from those who visit your site.
• Earnings per click – Although this indicator can show you how much money you made, performances use different strategies to promote offers, so it’s possible you won’t be able to determine where clicks come from.
• Attribution – Attribution describes what performance channels were used when a transaction was completed. Using the attribution tracking you can see the values that various touch points bring to your sales.
• Cost per acquisition (CPA) – Cost Per Acquisition, on the other hand, is a financial metric used to directly measure the revenue impact of marketing campaigns.
• Return on ad spend (ROAS) – The money you are spending on advertising need a greater return in order to have a successful performance marketing campaign.
While your performance marketing KPIs don’t need to be revenue or cost-based, they should be measurable so you can easily identify what’s working, what’s not, and adjust your strategy accordingly.