 Thank you everyone. Hello. Good afternoon. I hope your day was good so far and the second day will be even even better So today we'll talk about performance marketing. We go to some best practices We go really deep as you heard with some hands-on examples on like how we faced Challenges and how we try to solve them Basically with some good examples on how we try to achieve growth and how performance marketing can be a growth growth lever So I'm just from the Netherlands originally good to be here next to that the stand Previously I was at 312 building the team from the ground up. I have an engineering background That is also where my performance marketing inspiration comes from and Currently I'm at Colvin Barcelona based company as you heard and we were redefining the flurry culture industry by Connecting all the different stakeholders in a new digital ecosystem So retailers growers and wholesalers Let's talk about performance marketing So let's start with your challenge. Yeah, the first thing is what is your challenge? Then we'll talk a bit about the roadmap and then we talk about what does good look like but let's start about Your challenge. What is your challenge? Let me guess what is on the top list of your challenge? It's probably how do we grow? How do you grow fast? Your product team if you have a product team might be talking about how do we think about delivering customer value? But what keeps you awake is probably growth. How do we grow faster? And we cannot grow fast enough. How do we grow? Week-on-week, how do we grow year-on-year and these are very important topics? And if you want to speed up performance marketing can help you with that But it's not a holy grail. It's not a silver bullet. So today we're going to look at how can you apply performance marketing in your journey? So let's take a step back when we talk about performance marketing and I think historically it has a really broad meaning But let's zoom in what performance marketing means and also if it's right for you Because initially if you want to grow you need to understand what your growth model is and there are several models that you can apply Usually a company or their every stage that can happen naturally. So you found your Growth channel it can be word of mouth can be refer a friend referral models It can be expansion if your marketplace for example that relies on supply You really need to build both side of the marketplace. So expansion is a big lever and can be one of your growth models Again SEO can be one of your growth models one of your organic organic growth strategies Etc. And there are very very many growth models you can apply and your performance marketing is one of them And how I define performance marketing here It is basically paid growth or ads in some companies and some areas It has a broader meaning you could also say okay SEO is is is growth Life cycle or a CRM CRM is performance marketing, but that's Keep stick to the definition of okay paid growth. That is performance marketing And usually you would pick one or two that you really want to develop From your from within your business and performance marketing can be one of those But before you scale you really need to understand what are some of these models you can apply Just an example Yeah, you might have seen this or might have heard it that Airbnb Well, the IPO'd pre IPO pre-covid They really wanted to ramp up their their their booking numbers and they invested Billions extra in their performance marketing And what does it say? I think there are a few articles you can find it find about it It was visible in the IPO documents But Airbnb fell flat last year on the marketing plan inspired by booking.com So you really need to understand what is your growth model and just copying it Without having the foundation how big you are does not work so if you Found or if you think that performance marketing can be one of the growth levers for your business First step is zooming out. How do you actually plan your journey? What do you need to think about? so I'm going to explain you a few principles that I think of and That might help you to get to this journey and the overall journey starts with It's more of a marketing challenge. I think in growth challenge and we're getting better at this, but how You make sure that your marketing team your performance marketing team moves away from being a cost center Into a revenue driver that is really really measurable. So you become a true business partner Let's get some examples. So if you have a performance marketing team, the first thing you need to think about is Be at the forefront of the month that team your experts They need to know what is happening. What are people searching for? How are campaigns performing? What is currently trending? They are very close to the data I'm giving you some examples later on of how does it impact your your business? But the performance team is really at the forefront of the month. They have all the data. So use it The next one is using the right Metrics and we're using the right metrics and KPI so Some of you might have heard of good hearts law which says when a measure becomes a target It's easy to become a good measure and with targets. You can change it to KPI There are a few good examples on that But this is just what I found is if you measure people on the number of nails made what the team will do or what the people Naturally will do they will create thousands of nails That might not be of good quality on the other side of you at a KPI or a metric which says Okay We measure you on the weight of nails what they will do is probably Create a few giant nails. So Understanding the difference between a metric and a KPI is really important when you want to start measuring performance marketing Just another example of real life I I I moved countries and had to open a bank account and I've seen this a couple of times I was at airports and after We opened the bank account the employee. He clearly had on the bottom of his screen a nice print out Where it's at a green smiley, which is a 10 and then the eight nine and below was a red smiley Why this happens? It is Probably he's measured on NPS. So he was clearly asking me say if you think I'm going to do job 10 is good The rest, please don't rate me because that will hurt my hurt my metrics so if NPS for example becomes a focus area people will definitely move try to game the system again for Machine learning really important for performance marketing. We are living in a world where automation is important So the team can just put a metric in whether it's app installs or cock And the system will optimize the system will optimize without knowing your business So the team needs to become an operator of that system. So if you want to have app installs, for example please Understand and together sit down with the team if that is the right metric Otherwise the team will optimize specifically for getting app installs, which might not be relevant because the current system and ecosystem They don't know your reasons if you're Google if your Facebook you need to be operating You need to understand what the team is is building or what the team is doing Then how do you set right metrics? So I'm going you to different metrics we can use from leading metrics So a leading metric is something that will set you up for success, but does not really tell you An output so ideally it starts with profit and revenue contribution if you do performance marketing You really want to understand the output of your campaigns and In the end it is it should start with profit, right? So if you have a team that is talking about conversions or is talking about CTR's Try to make sure that everybody's focused on one metric which is which is profit because in the end the marketing investment You do and the marketing investment you make It costs money and in the end you want to understand what the ROI is of this of these campaigns So start with profit The second one you have efficiency metrics so aside from Leading metrics efficiency metrics tell you tells you something about the quality for example going back to the nails example To put a quality metric in place really helps you to understand the absolute numbers the volumes, but also measuring the quality Then you have lift metrics So how much do you spend in marketing and how incremental is it? It's really important to understand that do not focus on averages with how much Incremental value can you deliver and then of course you have the lagging metrics which are more closely Related to the output you want to generate, but they don't tell you why or how just to Put down some metrics here that might be relevant for a subscription or DTC models You might be looking at several metrics some of these could be your KPI It doesn't mean that these are all of your KPIs, but you could look at conversion lifts. So for example if you run campaigns What do people do what how do you behave if they haven't seen these campaigns? So how incremental is your marketing investment? For apps obviously app installs is a good probably Leading metric of how successful your app is how much revenue you will generate I think investors Still look at app installs. Why because it might be a proxy of your future profit or your market share compared to pet competitors It's not something you would optimize for but it's still an important Leading metric that can lead to revenue in the future Cost for installs, of course you want to look at efficiency like what is the cost you're paid per install? And if you have an app an e-commerce app or a gaming app you want to look at activation rates So how many people that actually downloaded your app are actually doing an action within one or seven days They could be making a booking it could be Generating an in-app purchase and then paid cock We go we were talking about it later on but paid cock is really important But the difference between blended and paid cock and obviously the ultimate metric is cock LTV So what is the ratio of actually the customers you have quiet and how much you paid for it? And the revenue and profit they they generate and I think most of the investors they want to know what is your cock LTV? It is there are multiple definitions of what do you include in cock with discounts or without discounts? But this is a good proxy of Having a good metric on how efficient is your marketing investment? For B2B and SAS you might be looking at cost per leads obviously then the sales team Will come back to you and say okay, but these leads are not converting so hey You might align with your sales team around what how do we define a qualified lead? What is a qualified lead? Pipeline contribution how much does marketing contribute to your to your pipeline? And then obviously of course also for a size cock LTV on a on a more like generic generic level The next one facilitating transparency with your CFO really important I think what set us up for success is that we with the marketing team had an ongoing Relationship and check-in with the with the finance finance team. So we build a rolling forecast We constantly and monitoring cocks. We constantly kept the finance team up to date around our upper funnel investments because that directly Has an impact on on the cocks so building a good solid ongoing communication stream with your finance team is I think key for Setting up your performance of marketing team for for success They need to know what is going on They need to be able to access the data and currently with all the bi tools you can give them that data and you can really Engage with them And for me that is the most important part just share everything you have at a very detailed level With your finance partner with your CFO you have nothing to hide It's your data and everybody should be looking at how you're performing at a daily level engage with them Just an example of how we did it At treat well how we were managing budgets together with the finance team the beginning of the year They come up with the finance model. We had a city-based strategy The finance team allocated a certain certain level of investment by city based on the projected growth But actually it is linking back to be at the forefront of the month An expansion But what we were seeing is that the team was more busy with managing budgets and stakeholders of like are we going to spend Understand the overspend of this the rest of the the rest of the month and not driving company performance So what we did we sit down with the finance team We redefined the financial plan and what we really saw is that We build a model where the performance team actually would come up with suggestions of where could we find the most incremental growth? Where could we find the the the the next? Customer at the cheapest price so the cost per incremental order So it's really important that you work together with the finance team to redefining like where do you think the growth opportunities are? And in the end we ended up with a central budget allocation, which helped us to Grow faster more on that an example later And then breaking down channels So obviously you have your PPC campaigns You have your bottom of the funnel campaigns. They're really good, especially I think when everybody's online It's COVID you turn on PPC and you capture all the demand that's there but it doesn't scale but you cannot just scale paid search and That is one important topic. You need to build a full funnel strategy So you need to think about your current demands your current demand You can obviously with paid search with retargeting you can capture that demand But at the same time and convince your CFO convince your financing You need to invest in future demand driving up a funnel campaigns invest in YouTube display work with influencers You need to work on both legs and it's really important that both work together and that drives future success the next one we talked about it, but Data so build a modern data stack. There are too many companies that have On-board of different systems whether your BTB company and you need you need a lead generation tool You need a engagement tool you need an outreach tool But actually then after a few weeks or months like what do we do with all the data? How do we connect it and there are a few steps and a few elements that a Modern data stack consists of which is the first one is all your data sources So you want to have all your data sources offline conversions spent data in one place You will want to collect it you want to store it in probably your cloud data warehouse And then you want to apply intelligence on that so you want to transform it You want to connect it visualize it to the business visualize it to the finance team So they're on a daily basis you understand what is happening and the technologies out there currently are quite easy You don't need a big dated data team anymore to implement all the different data sources Tools like stitch or 5-tran can easily pull in all the data from Salesforce from Google ads You're at spend at a daily level and then of course you need to visualize that However, you also need to date to send that data back to your to your systems If you know the life and value of a customer you want to have that visible in the customer service team and Salesforce so By applying these principles you will build a modern data stack which sets you up for a success An example of like how how you can leverage that? Just a hands-on example, which is the budget allocation we did Again at retail we had a budget constraint We had with the finance team beginning of the year we set up specific budgets for specific cities And we really were seeing that we are we could we were missing out on opportunities to grow faster So what we did is we took away all these constraints we build a spend curve to get over the data team And marketing team of like how much can we spend per week and how much new customers do we expect? That then is applied was applied automatically on a weekly basis to all the different markets So we moved from a financial forecast On a spreadsheet towards a demand driven model That was allocating budget on where can we find? incremental demand At the cheapest way and then initially we looked at the cost border and then that moved more towards a revenue and lifetime approach This saved us in six months two million euros without any without any Lost customer so the same order level we saved two million euros by applying this data-driven budget allocation model Next one is defining your operating system. So probably you will start with a local structure That's what we saw at From my experience is that there are many companies that go from Sensualization decentralization localization centralization, but in the end I'm a high believer in building functional expertise on the right side why Because it gives your team the opportunity to learn to grow in their careers They don't have to less quats might change on a quarterly basis, but building deep functional expertise Within performance marketing is the key to key to success Again, it might not be applied to your specific situation But from my experience deep functional expertise is really important to make sure your performance marketing team is set up for success Creative excellence We had a session about brands. You cannot go without brands anymore. So on the left side You will see masterclass really high production value high production content Good example of how to engage with your which audience on Instagram and Facebook on the right side You have textile. It's a it's a it's a US company and they are Subscription service and they really iterate with almost like crappy ads. You need to find out what's working for you You need to find out what is working for you test different ads test different creatives run Creative feedback loop with your creative team But as you can see You will probably push brands to the limits and then the creator economy so Performance marketing at Colvin where I'm currently at sits With performance marketing the interest team sits with performance marketing. We do brand influencers But it's the second biggest channel all those marker micro influencers You need to engage with them and they are currently Platforms where you can engage directly with your creators I think in most of the European markets now the greater marketplace is launched from tick tock Great opportunity to connect directly with some of your potential creators that can promote your product Okay, what does good look like if we know some of these principles? How do you apply them to the business and where should you start? What is what should where should you start with building the foundation? We've touched upon it Very briefly and for example how to build a data stack But I want to give you a bit of a roadmap of what does good look like and what is best in class? Okay measurement creative KPIs Data and automation How do we set the foundation and what is next level so when you talk about measurement? Let's start with a single source of truth. Let's start with Google Analytics last click is okay It is perfect. You need to set the baseline last click is better than better than nothing If you understand that last click and you understand what the limitations are Continue to use it. It's a good baseline Creative as I said brand and creative are really important. Make sure you have a creative team in-house or facilitate quick iterations You can work with an agency, but don't make it a waterfall model. You need to build those feedback loops What are some of the good KPIs as a foundation? Obviously your customer acquisition costs are important and way too often I see people talking about blended cock even in investor decks Please try to split it out between paid cock and blended cake. Why if your campaigns are not profitable, that's okay But if tomorrow someone asked you to scale those campaigns What will happen? Your contribution and and the profit will plummet so it's really important you understand the profitability of your marketing campaigns at a Paid cock level ideally at an LTV level ideally at a segment level, but start with paid cock That's the only way you can understand you make your campaigns Scalable, otherwise if you scale you'll be of course burning more money if you only look at blended cock models Data on automation, okay, make sure you it's very ambitious to have this here at the foundation There's a company here called Supermetrics amazing does the job it automates a lot of spreadsheets This is an ambitious North Star, but have a look at it and they're very Good automation tools I can pull data also in a spreadsheet. It's wonderful Targeting Important start with easy targeting just on an H. What is your customer? And then culture okay file fail fast and and and cheap if you want to take it to the next level There's some steps in the middle on the measurement side You will probably want to have an in-house attribution model. You want to implement lift testing, but what? Do you want to do you need to do to take it to the next level? What is best in class and for every company that means probably something different? but Best in class is on the measurement side last click goes away attribution goes away attribution doesn't exist anymore, so you need to combine your different data points different different resources you need to Or we look at your brand tracker you need to look at yes your attribution model You need to look at surveys like how did people find out about you ask it in a checkout ask it wherever you can How do you understand the accountability of your marketing spent? Be brave turn off paid marketing for two weeks Turn it off see what happens turn off Facebook turn off paid search Be brave and try to measure the incrementality creative Ideally in a best in class environment you have dynamic and personalized creatives But it's really about generating that feedback loop, which is really important In KPIs again, we talked about it if you have cock is really good cock But if you're an e-commerce business cock doesn't differentiate between the weather user buy something for two two euros or pounds or two hundred years of pounds So you need to understand what the revenue is that this user generates And then data and automation so a data warehouse is great But what do you do with the data initially? You also want to create a feedback loop and send it back to sales for send it back to your CX team So best in class is having the data collected connecting it and then I in an ideal case Send it back to the systems so they can make better decisions So these are some steps that you can take to build a best in class roadmap on several areas We did it at scale a treat all again just an example We were in 13 markets spending tons of millions in Performance marketing and we had something that changed really quickly. We had partners onboarding partners off-boarding Salons in this case and there was a team that they did everything manually in spreadsheets So we build a tool that connects our paid search campaigns with the data warehouse So including translations, so we had our use translation database And this was really the start of our automation journey So make sure you think long-term and build things in a scalable way There are lots of things you can automate in in paid search and across all the different channels Together with your data team and together with some of the teams how to get there so Performance marketing is about automation. We talked about creative But if you want to scale you need to think about how do you want to set up your team so by seeing success of The automation we drove from the data warehouse with automating that paid search campaign creation We were able to scale the teams care campaigns without adding people But without adding people in the performance team. We did add people in the automation team. So We really thought about it is also years ago I think many companies now have a marketing technology team But we really opted for these three areas so performance operations daily campaign management And then marketing technology and marketing analytics These were the three pillars of the team where marketing technology really drove the roadmap How can we automate? How can we build things at scale and then obviously you need to create a feedback loop with the brand team What it's created success. How do we measure our creatives? How do we build our naming conventions in our Facebook campaign? So you can actually drill down like the differentiates between a name and a review video an unboxing video, etc An example or chart of like how it can look like together So hey your performance marketing work at vertical or some companies. It's a growth marketing vertical depending on sink the sector You're in That's quite an overlap. You have any retention vertical and then you'll have a brand for But performance marketing can't live on its own You need a product team. You need the brand team and you need an engineering team So the key is yes, you need the finance team But this is what creates success performance marketing cannot live on its own And you need the entire organization to build success. So again the basics Get the basics right Being a driver seat find where there is demand And then it's all about data data data and automation There's a lot of things you can automate and think about it invest in an marketing technology team invest in marketing technologists They will Help your performance marketing, but they will also help to connect the dots They help your CRM and lifecycle team and then pursue creative excellence And again performance marketing is at the heart of the business. Yeah, it's a data driven It should be the data driven area of of the business so I hope that you have these takeaways and that will help you to get it started and I really want to thank you for the talk and enjoy the rest of slush. Thank you very much