India’s E- commerce and retail industry has witnessed a massive breakthrough in the last five years. It has evolved from a product-oriented industry to a service and experiential industry, with the customer at the core of its operations. Today, every retailer isout to woo the customers from their competition. E-commerce players such as Ebay, Amazon, and Flipkart; have taken over the market and they have lucrative deals and offers for their customer base. However, tracking these deals, until a few years back was a challenge. This has become easier and more relevant with the advent digitization. With the demanding customer base; brands, marketers and e-commerce platforms, and affiliates are fine-tuning their performance marketing efforts. Many may ask – what is performance marketing? Performance Marketing means many things to many brands and marketers, but what does it really do?
It is a platform that consolidates data from all retail and affiliate platforms of a brand, an e-commerce site or an affiliate program and centralizes the data. This is the beginning of a company’s plans in its efforts to build relevance in existing markets. The impact of this in India is catching up fast. As India is a developing economy and it is predicted to grow to one of the major global markets of the future.
With global brands establishing themselves in the country, and more and more new brands are entering the market after watching their competition grow. Innovation and centralization of data are imperative. This industry has seen some best-in-class marketers do what they do best. This is what differentiates and distinguishes one successful brand from another. The Digital Revolution has changed the customer landscape and it is imperative for a marketer to think like a customer.
Thus, while there are many tools to study the relevance ofany communication or a message, Performance Marketing is one of the most innovative and latest toolswhich is a necessary in today’s competitive scenario. Retailers and Marketers stand to gain a lot from Performance Marketing tools; if they use these points to the fullest such as ‘putting everything into a trackable format’ – which basically is a simple task. It entails the retailer to put things into a omnichannel format. This is one of the most innovative technologies which is helping retailer to control their business with ease and convenience, the various customer satisfaction platforms and rewards are available at a single glance. Hence, businesses have become efficient and organised today.
The next thing is to ‘integrate the communication channels’ - by doing so, it will give the business a clear picture of all channel performances on one single screen. This is a major advantage for the business. It also gives the retailer an edge over the competition.
Another point to focus on is to ‘activate win-win relationships with customers. Performance marketing ensures that it pulls out results to show both active and inactive customers.Thus, it works like a transparent and effective business model for those who are looking to increase market share with meaningful responses. This helps marketers build better communication plans while strategizing for the next customer based offers they are about to announce to their users.
In India, this is a new trend and companies are soon revamping their networks and operating systems to gauge better results from their existing customer base and partnership. While this is ongoing, large companies are giving more and more emphasis on the importance of Performance Marketing. By doing so, the results attained on customer shopping behaviour integrated with offers and loyalty affiliates, brand stickiness; can give any e-commerce company the right set of information.
With this tool, they are a force to reckon with, as they have every single line of business aligned to a single marketing thought. This helps a brand or an affiliate build a compelling communication platform. Thereby, reaching to more people than one can ever imagine. That’s taking true advantage of the Performance Marketing tools and using to benefit the business.
As brands grow and enter new markets, this will be the greatest tool to gain more relevance and equity as a company. Large multinationals have already adopted this change and are seeing results coming in quicker than they gauged, which is a huge benefit. But, affiliates and retailers need to be well prepared in advance to bring about these changes.
The article has been penned down by RijishRaghavan, Vice President & Head of Partner Management at PAYBACK India.