Data is the new electricity, the greatest of all assets on earth in this Digital economy. People also call it the new oil of the digital era.
In this blog, I’ll be taking you through the subjects of performance marketing. Performance marketers data and metrics, and how they differ from digital marketing, their day-to-day work activities. Analytical reporting tool Tableau and how it helps your business make the right moves at every stage of your Marketing cycle and few examples of using data to maximize profits.
Performance Marketing (PM) is one such field that is the art and science of placing your brand in front of the right person at the right time with the right message.
Pretty much like, Digital Marketing (DM), but the key difference lies in its metrics. For example, DM campaigns measures the website traffic we receive, Social Media followers, Influencer Marketing, Reputation Management, Share of voice, Email open rates, and many more.
On the other hand, PM campaigns are the number of registrations, leads, qualified leads, repeat purchases, average transaction value, volume of transactions, app activation, app re-engagement, increased basket size with upsells, client sales, customer lifetime value, ROAS, spend vs revenue, revenue vs profit, etc.
In a simple context, we can say that Performance Marketing is a subset of Digital Marketing. Since it focuses on data, metrics, and analytics, Tableau is a tool that will help you measure campaigns effectively and improve accordingly. Let us dive deep into the day-to-day life of a PM first.
A performance marketer understands the business, brand, competition landscape, and customer behavior. They have good knowledge and deep expertise in digital advertising channels such as Google Search, Shopping, Display ads, Meta ads, Programmatic, Native ads, LinkedIn ads, Quora ads, Youtube ads, Affiliate Marketing, Hyper-Local, Demandbase, App Channels like Inmobi, etc.
Numbers play a pivotal role in any organization, which makes them analytical while measuring different frameworks and attribution models. The last is their obsession with tech and tests. A deep understanding of landing pages, website technologies, conversion codes, and visitor behavior with a business growth mindset, having focused KPIs is what constructs a Performance Marketer.
The metrics that are important for measuring digital campaigns are CPM, Frequency, CPC, Conversion rates, CAC (Customer Acquisition Cost), MER (Marketing efficiency ratio), CAC Payback (Mostly used in Subscription models like Netflix, Udemy, and Spotify), and CAC LTV (Lifetime Value), etc.
With the help of Tableau, the leading analytics platform, it is possible to bring marketing data together to get unprecedented insight into your digital media spending, social media, website performance, customer journeys, and beyond. Tableau is a reporting tool, the equivalent of Google Data Studio, PowerBI, and many more.
Tableau answers the most curious questions and helps create a data culture in the organizations embracing them to make informed decisions and succeed. The way we consume data is just as important as the data itself. If the data remains in rows/columns as a matrix of numbers, it will continue to be confusing, misunderstood, and mysterious.
Creating a dashboard is one of the ways that helps us understand data easily. Tableau dashboards are interactive, highly customizable, and easy to build. We can create graphs such as dual-axis line graphs, geo visualizations, and word maps.
Data-Driven Performance Marketing with Tableau is a lot easier than you think. It is a drag-and-drop tool that helps marketers analyze and decide the past, present, and future scenarios. There are many examples where data has helped organizations make wise decisions and save money.
One such case is of Nestlè, where they used user behavior analytics and predicted the total sales, which helped them save enormous amounts of money in unnecessary production of inventories.
So, do you have what it takes to become an efficient Performance Marketer using tools like Tableau, PowerBI, and Data Studio, that will help you visualize data and help your company stand out?
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