Why Is Outcome-Based Marketing So Successful And How To Do It Right?
Whenever a new marketing strategy is implemented, its effectiveness is gauged by estimating the amount of brand awareness it generated or by calculating the number of sales made. Afterall, if the results of the campaign perfectly align with the numerical goals set initially, you have done your job, right? Well, not necessarily. By simply collecting concrete metrics like response rates, likes, comments, clickthroughs, conversions, etc. and using algorithms to combine and analyze those numbers, you’re missing out on a far better approach to marketing.
It’s no surprise that online shopping is being preferred more and more over on-site shopping, especially after the major digital transformation brought about by the pandemic. Because instances of customer conversations with sales representatives are declining, customers’ buying habits have become increasingly self-directed and abstract. Today, relying on highly specific measurements and statistics might not tell you much about how successful your marketing strategy is. Instead of focusing on results like the number of visitors on your website, it’s more beneficial to use Kuwait's internet marketing services to evaluate the outcome of your marketing efforts.
Outcome-based marketing is defined as the process of describing desired customer behavior outcomes and working to achieve factors that drive those outcomes. This can be a little tricky to grasp, since the words “outcome” and “result” are so synonymous. However, there are important differences. Results are strictly defined and short-term, and usually rely on traditional metrics like views and bounce rates. In outcome-based marketing, results might be useful, but don’t predict success. (In fact, ROI is considered to be the most valuable metric at this time). Outcomes focus on larger, meaningful development, and are more long-term in nature. Think of it as starting from the end - the customer behaviors you desire, and tracing your steps backwards.
A major component of outcome-based marketing is enhancing customer loyalty to solidify and expand the existing customer base. It’s not just about finding a target customer. It’s about finding a consumer who will really enjoy and benefit from your product. It’s also about finding prospects who are somewhere in the middle of product/service awareness and conversion, and convincing them to become loyal customers. A study by MMA Global, which calls these prospects the “movable middles”, has found that targeting this group effectively improves return on ad spend by 50% and even attracts more non-buyers. Moreover, movable middles can be predicted with 99% accuracy for each brand, regardless of the industry they belong to. This is crucial for companies that allot copious amounts of money to their marketing teams. Instead of spending everything on maximizing reach and frequency, why not allocate a modest budget to more specific business outcomes that better align with your business priorities?
Here is a more concise sum of the benefits of an outcome-based approach to marketing that digital marketing companies can reap:
- Metrics like clickthrough rates (CTRs) and impressions are imprecise and cannot be used alone to determine ROI. Outcome-based marketing relies on more tangible metrics like purchases or requests for information.
- Since this approach captures real-time data and analyzes it faster, you don’t have to wait for a long period of time to see the differences.
- The targeted outcomes will help you achieve more with less money.
- It has longer-term effects like customer loyalty and an increasing customer base.
- It’s a value-driven approach since customers are always at the forefront of every decision and a personalized vision is conveyed for each prospect. Because you’re preoccupied with contributing as much value as you can to their lives, they’ll automatically see value in all that you try to provide them.
- By establishing a vision for the future, it sets clear expectations for both you and your prospect.
Here are the essentials of outcome-based marketing and the steps that internet marketing agencies can take to make it work:
- Dive Deep - Switching to outcome-based marketing means switching your entire perspective on marketing effectiveness and redefining goals. Your team might need to brainstorm a more holistic, big-picture view and use metrics like clicks and impressions only as a supplement and not as measures of success. This first crucial step also involves a re-examination and re-allocation of budgets, campaigns, and target audiences.
- Understand your customers - Creating a high-level and concrete buyer persona is at the root of this marketing strategy. You can start with pointing out the various preferences and problems of the types of buyers you deal with routinely. Having a detailed and specific customer profile will give you a much clearer idea of how you can best appeal to them. The baseline characteristics of different types of prospects will undoubtedly be different. It’s up to you to be receptive to their individual priorities.
- Present a solution - Describing your outcome is a coming together of all the effort you put into the research and analysis of your audience. Your sales strategy needs to be compelling. Remember, it’s not just about selling a product or a service. It’s about selling a future. You have to propose an elimination or minimization of the current issues that plague your customers. It’s kind of like elaborate storytelling, which is one of the best ways to present a convincing outcome.
- Track transparently - Continuous tracking is essential to find out whether the desired outcomes and results of the campaign have been successfully met. Although measuring sales is important too, there are more realistic and meaningful metrics that should be sought. With the advent of modern advertising technology, we can get information like how long someone stayed on a page, what their journey was like while navigating the website, which places did they end up clicking, etc. Transparent tracking allows you to deem the effectiveness of your marketing strategy in attracting and keeping customers. Once you have all of this valuable information at your disposal, you can decide what your areas of improvement are. Whether it be your website design, your pricing, or something else, you now have the opportunity to work on these concepts.
- Adjust in real-time - It used to be that once a campaign went into effect, all you could do was sit back and hope that it went well. Campaign misfires were hard to fix once launched. However, now you can not only get access to information on your campaign post-launch, but you can also take concrete steps to adjust and manage that data in real-time. By tracking performance in real-time, you can immediately start refining your campaign and working on issues before they become unmanageable.
Fine-tuning a marketing strategy is not easy. But utilizing Kuwait digital marketing services that follow an outcome-based approach that values personalization and imagination will help you close more deals down the line. At Design-Master, a leading Kuwait digital marketing company, along with measuring short-term metrics, strives to help your brand achieve longer-term outcomes. With the latest technology of the modern marketing climate and an experienced marketing team at our disposal, we can accurately measure performance, optimize campaigns, and achieve your desired brand goals.
Contact us today to get started!