With performance-based marketing, the marketer pays only for results. With other forms of marketing, you pay regardless of results, you expect results and you plan to have results, but you pay whether or not they happen.
Regardless, when it comes to judgement day in you marketing campaign, how will you answer:
- Did your marketing generate new customers?
- How much did you pay per new customer?
- Did your investments align with your returns?
There is a lot of talk today about new marketing channels (web, mobile, social), but we don’t hear much about the performance-based marketing. We are on the verge of a major shift, a shift from a focus from the top line to the bottom line, and a shift toward a stronger focus on ROI.
What you need to succeed in performance-based marketing
1) Large scale targeted reach
- High therapeutic reach and condition penetration
- Capture spectrum of mindset (condition, treatment, behaviors, motivation)
- Manage quality to volume tradeoff
- Avoid questionable/risky sources of volume
- Optimized/performance-based efficiency
2) Drive to action
- Explicit consumer profiling; ability to pre-qualify consumer interest
- Dynamic evolution of consumer profiles
- Consumer permission
- Lead validation and scoring
- Insight-driven tailored contact steam
- Integrated, cross-channel to maximize impact
- Optimization process to re-balance media mix and communication flow
- Alignment of all decision influencers across decision cycle
3) ROI Attribution
- 1 to 1 individual-level attribution
- Ability to qualify and eliminate influence overlap
- Credentialed/audit-ready statistical accuracy
- Performance analogs and norms across brands and categories
- Tolerance for 3rd party prescription match-back studies
- Clearly defined performance metrics
- Mutually manageable payment terms
3 Things You Should Do:
1) Task your marketing suppliers to offer more performance-based options
2) Obsess over your trageting criteria to find the right tradeoff between campaign reach and effectiveness
3) Work very closely with your financial group to understand how attributable revenue will measure success