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How To Use Performance Marketing To Increase Customer Retention For Your Beauty Brand

how-to-use-performance-marketing-to-increase-customer-retention 
for-your-beauty-brand

It’s becoming increasingly difficult to capture and hold your customers’ attention.

With a combination of email marketing, social media, and in-store offerings, there are now more touchpoints available for your beauty brand.

However, this can often lead to marketing campaigns being less effective.

Traditional advertisements are becoming less cost-effective for brands as consumers turn from conventional media to more crowded social media platforms. In response, savvy beauty brands are turning to performance marketing to improve ROI for advertising dollars and increase customer retention.

What is Performance Marketing?

Performance marketing is an online marketing strategy that is based on quantitative results. You may be familiar with the concept of affiliate marketing — this is a popular type of performance marketing strategy. The spend on affiliate marketing in the U.S. is almost $7 billion.

Performance marketing offers a unique opportunity for a win-win situation for both the ad publisher and the retailer. With this approach, your beauty brand only pays for an advertisement once a specific objective is reached, giving you a guaranteed ROI. And the ad publisher is incentivized to use highly effective conversion-oriented advertising to maximize their payout. Implementing performance marketing can increase your beauty brand exposure, increase sales, and improve customer retention. Here’s how to get started.

As you would for other advertising campaigns, you need to set your goals for a performance marketing campaign. Since this strategy is outcome-based, you must be clear about your goal outcomes. Your campaign can target new sales, new leads, website or link clicks, or something else you find valuable.

You must be able to track your goal outcome. Software and online advertising tools can help track your KPIs for performance marketing campaigns. Generating reports and exporting performance data can help establish trust with your ad publishers. This can lead to long-term relationships that increase customer loyalty as fans enjoy engaging with the ad content from specific publishers.

Boost Affiliate Sales

The next step is to partner with ad publishers who can launch your campaign. This may look like setting up an affiliate marketing program and inviting loyal customers to join your beauty brand. You could contact beauty influencers and ask for a collaboration detailing your goal outcome metrics.

Even though you pay based on performance, you should be selective about which ad publishers you partner with. Setting up a campaign, discussing deliverables, and tracking your desired outcome takes time and effort. Reaching out to influencers and affiliates with an established and engaged audience like your ideal customer can help you achieve results faster.

Depending on the size of your brand, it can be helpful to offer a brand guiƒde to affiliates and influencers joining your performance marketing team for the first time. This helps them create content and advertisements that match your brand voice and grow your brand influence. You can also include guidelines to help them comply with FTC regulations and avoid fines.

It’s time to track results after your performance marketing campaign goes live. This can be simplified with affiliate tracking software. The software will keep track of clicks, leads, and sales for each affiliate or influencer. You’ll be able to generate reports to track the campaign’s success and identify areas for improvement.

In addition to your goal outcome, you should track other KPIs to determine the overall success of your performance marketing campaign. Understanding bounce and click-through rates and comparing ad content can inform areas to target in future marketing campaigns.

Influencer Marketing Made Simple

Performance marketing connects your brand and customers more closely than traditional advertising. Many affiliates and influencers have conversations with their referrals before they complete a purchase. Customers may offer feedback more willingly to affiliates and influencers because they feel a closer personal connection.

Reach out to your ad publishers during and after any performance marketing campaign and listen to their feedback. They could offer a way to improve your platform’s user experience to increase conversions. Or they might provide a new product or subscription idea that brings customers back to your brand month after month.

Performance marketing delivers results for both retailers and ad publishers. The types of advertisements created through this approach can inspire consumers to buy more — and remain loyal to — individual brands. With just a few simple steps, you can launch your first performance marketing campaign and grow your beauty brand.

Special thanks to our friends at Refersion for their insights on this topic.
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