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How Performance Marketing Drives Growth and Success

In the dynamic, ever-changing world of ecommerce, a brand's growth and success hinge on its ability to reach potential customers effectively, convert them, and foster a lasting relationship. Key to this equation is a marketing strategy that's not only efficient, but targeted and flexible too.

Enter performance marketing – a transformative approach that allows ecommerce businesses to drive traffic, boost conversions, and amplify return on investment (ROI) while maintaining absolute control over their marketing spend.

In this article, let's look at what performance marketing is and why it’s so important for ecommerce brands in 2023 and beyond. Alongside this, we explore how THG Ingenuity’s digital services can help you embrace the power of performance marketing for channel execution and full-funnel conversion. 

January 10, 2024

5 min read

Katie Riley, Elliot Taylor

What is performance marketing?

Performance marketing refers to a results-driven digital marketing strategy; one in which brands only pay when specific goals, actions or conversions are completed.

A performance marketing strategy leverages a variety of different channels for its success. Pay-per-click (PPC) advertising, social media, content marketing – these are just a few examples of the channels required for effective performance marketing. 

Why is performance marketing important?

Performance marketing gives brands the freedom to create and launch marketing campaigns that are tightly focused to their specific goals.

By leveraging performance marketing, brands can identify the results they need, targeting specific audiences and monitoring the success of their campaigns.

This targeted, results-driven approach to marketing empowers businesses to make the best use of their budgets, delivering more meaningful and impactful campaigns as a result.

Key benefits of a performance marketing strategy

An effective performance marketing strategy unlocks a host of benefits for online businesses.

Here, we explore a few reasons why performance marketing is so vital for modern digital brands – and how THG Ingenuity’s performance marketing service helps our customers meet their goals. 

Mastering multi-channel execution

In today's interconnected world, your brand's visibility across various channels is crucial to effectively capture and engage your target audience.

Shoppers today interact with businesses across a variety of touchpoints. DTC websites, social media, email, search engine results pages – all these channels and more are essential places of interaction between your brand and its customers.

But an effective multi-channel strategy requires a powerful driver behind it.

THG Ingenuity's performance marketing solution is designed to orchestrate and fine-tune your marketing campaigns across a range of platforms, from search engines and social media to email marketing and display advertising.

And the results of this are proven.

In 2023, THG Ingenuity helped launch the first UK loyalty programme for a large US beauty brand. The launch saw positive engagement, with first-purchase shoppers increasing by 30%, customers who made two or more orders increasing by 163% and those who made three or more soaring by 214%.

Alongside this, upper funnel investment positively impacted the channel mix. During the product awareness campaign, new users increased by 300% and revenue by 150%. 

With THG Ingenuity, your marketing efforts are seamlessly integrated, allowing for optimal ad placement, precise targeting, and personalized messaging that captivates your audience across every channel.

For your brand, it means wider reach, diverse customer touchpoints and a higher probability of conversions.

Customer journey map in a digital form

Create powerful consumer relationships

Consumer relationships are the lifeline of enduring success.

A positive, more personal connection between your brand and your shoppers. It encourages greater loyalty, repeat custom and increased consumer retention too. And when returning shoppers spend an average of 31% more than new shoppers, a strong shopper relationship is worth pursuing.

But how can your brand achieve this? The answer lies in your customer relationship management (CRM).

THG Ingenuity's performance marketing solution equip you with the capacity to design tailor-made CRM strategies that nurture meaningful bonds with your audience.

Leverage cutting-edge data analytics and segmentation to gain insights into your customers' preferences, habits and purchasing patterns.

These insights enable the formulation of customized CRM approaches, allowing you to connect with each customer segment through relevant and personalized messaging. This personalized approach boosts customer engagement, solidifies brand loyalty and cultivates repeat purchases. 

Embrace innovative marketing technology

In the rapidly evolving world of online retail, advanced tools are vital for success.

Marketing tools have gone from strength to strength in recent years, driven by the rise of artificial intelligence (AI) and machine learning (ML). For brands, these innovative tools unlock a wealth of new opportunities – and THG Ingenuity's performance marketing solution is no different.

Our digital marketing services provide you with top-tier marketing technology tools for streamlined campaign management and insightful data analytics.

These tools empower businesses to refine their marketing workflows, automate processes and enhance campaign performance.

Real-time data and analytics facilitate the tracking and measurement of key performance metrics and a thorough analysis of customer behavior. The outcome? A continuously evolving strategy that drives superior marketing results.

A person typing on his laptop and a holographic diagram of statistics

Track your performance with agile real-time monitoring

Staying adaptive in a fast-paced digital landscape necessitates real-time monitoring of campaign performance.

Tracking your marketing performance enables continuous campaign refinement that drives scalability and increases. THG Ingenuity's performance marketing services provide exactly this.

With the ability to track key performance indicators (KPIs) like click-through rates (CTR), conversion rates and return on ad spend (ROAS), this real-time monitoring empowers businesses to identify trends, detect potential challenges and act promptly.

The result is on-the-go campaign optimization, effective budget allocation and optimal marketing results.

Performance marketing empowers ecommerce brands to take control of their marketing strategies, allowing them to engage customers more effectively, optimize marketing spend and drive sustainable growth and success.

Effective performance marketing provides you with the ability to launch comprehensive marketing campaigns, devise personalized CRM strategies, leverage state-of-the-art marketing technology and monitor performance in real-time.

Supported by our technology and fulfillment, harnessing the power of marketing and embracing powerful performance marketing helps drives targeted traffic, increased in conversions and maximized ROI for all our customers.

Take your marketing strategy to the next level. Get in touch today and learn how performance marketing can help you thrive in the fast-paced and ever-evolving digital marketplace.

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