Performance marketing: How do you use a newsletter sensibly?

What is performance marketing anyway?

The term performance stands for the performance that a measure offers. In the context of marketing, the question arises: What is performance marketing? It is a data-oriented strategy in digital marketing that puts user interaction in the foreground.

Relying on performance in marketing means that marketing actions become quantifiable. This is because online performance marketing uses measurable interactions of the target group. These are generally referred to as key performance indicators (KPIs). Classic performance marketing KPIs are the click rate, the conversion rate or impressions.

The goal of a performance marketing agency is to identify the most efficient marketing measures. Based on the KPIs determined, it is possible to constantly adapt the strategies in order to increase their efficiency. In this way, the measures can be used to win new customers and retain existing customers.

These are the four most important areas in performance marketing

The performance of a campaign can be determined by different interactions. To enable this traceability, four areas are crucial for the performance marketing agency.

1. Target

Defining individual goals is the first step in determining performance. Whether it’s lead generation or placing Google Ads, knowing your goals can determine whether the performance campaign will achieve the desired results. The following objectives are important for performance marketing:

• Campaign-related goals, for example to increase the number of visitors.
• Customer-related goals such as strengthening customer loyalty.
• Corporate goals, including increasing market share.
• Marketing objectives, for example to achieve higher product awareness.

2. Marketing initiatives

In order for the performance marketing agency to achieve its goals, various instruments are used. These are mainly measures from online marketing:

• A promising SEA and SEO strategy
• Display marketing for different advertising spaces
• Social media marketing in all relevant social networks.
• Email and newsletter marketing to address customers directly.
• Affiliate marketing for the targeted sale of third-party offers

3. Control

Performance marketing aims to quantify the results of marketing initiatives. Therefore, regular monitoring is crucial. Various analytical tools help to keep an eye on marketing performance. A well-known example is Google Analytics, which illustrates the immediate response to ads placed.

4. Optimisation

The data collected during the campaign helps to optimise the campaign. If the results of social media performance marketing do not meet expectations, adjustments to the strategy are necessary. The performance marketing KPIs support this, as they provide an understandable answer to what works with the chosen strategy – and what does not.

Performance marketing – why use newsletters?

Newsletters are an excellent strategy for online performance marketing. They are a means to address a target group personally. In this way, suitable offers, current news or the latest trends can be sent directly by e-mail. Here it is possible to use many useful performance marketing KPIs to further refine direct marketing. These include, for example, the existing content, but also calls-to-action.

The special thing about newsletter marketing is that this performance marketing is suitable for every company. Every industry and every company size benefits from the direct approach to potential customers. In particular, the personalised content is a good way to increase your own performance.

Although social media performance marketing is effective, many people find emails more personal and serious. Additionally, newsletters have a distinct advantage over social media performance marketing for businesses – especially in the B2B space. Emails do not tend to get lost in a flood of posts. At the same time, they do not appeal to a broad mass, as is often the case with influencer marketing. Instead, they aim to align with the needs of the consumer.

Here we have compiled a detailed article on the topic of email marketing.

Performance marketing and newsletters: These key figures reveal performance?

In online performance marketing, the central KPIs help to optimise one’s own marketing strategy. It is important to keep an eye on different key figures.

• Open rate: This is a central key figure in online performance marketing. A distinction is made here between the total opening and a unique opening per recipient. How often an email is opened determines whether the newsletter can promise the desired success. An open rate of 20 to 25 percent is considered desirable for performance.
• Click rate: The click rate reveals how often recipients have clicked on at least one link in the email. Here it is important to distinguish between unique clicks and multiple clicks. Most experts decided to use the unique click rate as a key figure.
• Unsubscribe rate: This describes how many recipients unsubscribe from the newsletter. This key figure can provide information about whether the content becomes less relevant over time.
• Click-through rate: It provides insights into how many recipients click directly through the mailing. The level of this rate is independent of the open and click-through rates.
• Delivery rate: This percentage shows how many recipients actually receive the emails. The delivery rate stands for the quality of the address list. It is the basis for the bounce rate.
• Bounce rate: This KPI describes failed deliveries. Since email deliverability is important for marketing and performance, it is an important KPI.

Best practices for performance marketing with newsletters

To ensure optimal performance marketing, the most important best practices should be taken into account.

1. Meaningful subject line: It has an influence on the opening rate and should directly encourage opening. A short subject of 30 to 50 characters is ideal.
2. Matching design: Both font and colour and the general design are decisive for marketing success. Therefore, the design should be appealing and fit the target group.
3. Mobile optimisation: Since most customers read their emails on their smartphones, the email should look great on mobile devices.
4. Use segmentation: It can be advisable to segment content from content marketing. This means that the emails go to customers for whom the content is relevant. For example, this can be regional information or information that relates to the interests of the recipients.
5. Choose optimal frequency: The frequency and timing of emails determines whether they are read. Here, each company must find out what works best.
6. Use A/B tests: These tests allow recipients to determine what they prefer. This usually increases engagement metrics, such as open rate and click-through rate.
7. Convince with CTAs: Every call-to-action should be clear, unambiguous and convincing. This makes it easier for potential customers to see what they should do next.
8. Integrate videos: Video content is one of the most efficient methods to impart knowledge. At the same time, most people prefer such content. It is worthwhile to integrate them in the newsletter.

Conclusion – if you use the newsletter correctly, the performance is right!

With an excellent newsletter design, quality content and good frequency, marketing performance increases. It is no wonder that the investment in this marketing measure pays off. Since effective newsletter marketing is not easy, it pays to work with a professional. They ensure that key KPIs improve, which contributes to better reach and higher sales.