As budgets gets squeezed and marketing departments and small businesses are forced to do more with less money, it should come as no surprise that performance based campaigns are becoming a hot topic. They are an alluring prospect for businesses burned by past agency appointments but can also be beneficial for marketing professionals too, helping to tie results to revenue and leaving no doubt that the service chosen will do exactly what it says on the tin.
A pay per performance campaign allows clients to define what’s most important to them, and pays the agency based on delivery in these areas. Such campaigns ensure there are no nasty surprises for clients and likewise, agencies know what is expected of them from day one. So, what should you know about a pay per performance campaign before you dive in?
Recording and Reporting Positive Results
Pay per performance depends on the delivery of a positive result. This must be defined at the outset of a campaign. In addition, rules must also be put in place as to how these positive results will be recorded and reported. This makes it easier to gauge success, with nothing left to chance, as the campaign gets up and running.
In addition to locking down performance and report expectations, there are additional steps you can take to make the most of your pay per performance contract.
Agree Terms in Writing
Hammering out what fees will be paid and when and how is a hugely important step to ensure both client and agency are on the same page. Written terms also make forward planning and campaign strategy much easier. Getting these terms down on paper avoids confusion further down the line and provides a strong foundation to set your campaign up for success.
Ensure a Contract Is in Place
Proceeding with a performance-based campaign should include the establishment of a clear contract once terms have been agreed. This contract should define the nature of the business arrangement between a pay per performance agency and the client, outline who is responsible for what and how long the relationship will last.
Work Closely With Your Agency Partner
As with any marketing task, working closely with the appointed agency provides the best possible chance of success. Collaboration doesn’t mean you’re doing any of the work, it means that you and the agency are both fully in the loop, making it much easier to adjust strategy to accommodate new circumstances or issues such as stock delays.
Schedule Regular Reviews
Reviewing the progress of the project, particularly during the early stages, is essential. While it might be tempting to think that as the performance goals have been set at the beginning the agency can just get on with it, this shouldn’t be the case. Regular reviews provide vital intel and a chance to assess progress in easily digestible chunks.
Ensure you have considered the scalability of your new marketing solutions and can deal with the resultant influx of business. If the pay per performance campaign is initially focused on a single product area, scalability early on means successful campaigns can be easily expanded.