OBM In a Nutshell: How Do You Measure Outcome-Based Marketing (OBM)?

With outcome-based marketing (OBM), the opportunities are endless when it comes to optimizing your brand’s customer acquisition goals. Now, the burning question: how exactly do you measure its impact? Let’s explore.

Measuring the Opportunities

Outcome-based marketing (OBM) revolutionizes the definition of advertising success by reversing the traditional approach – starting with desired customer actions and then working backward to identify the factors that drive those behaviors. The metric you choose determines what actions trigger a commission payment and the ROI of your effort. Success can depend on various factors, including industry/vertical, product or service offerings, compatibility with diverse publishers, and how well your brand understands its customers’ journey. 

An effective OBM strategy should ideally contribute a minimum of 15% incrementally to your existing media mix. Some marketers exclusively invest in OBM, recognizing that acquiring the customer directly is more impactful than merely obtaining impressions or clicks. 

Learn more on measuring OBM opportunities in Perform^[cb]’s C-Suite’s Guide to Outcome-Based Marketing.

Tailored Payment Models for Desired Outcomes

Marketers embracing outcome-based marketing (OBM) can choose from various common “cost-per” pricing models, each strategically aligned with the brand’s desired outcomes:

• CPA (Cost per Action/Acquisition) – Pay for quantifiable results, assuring marketers only pay when a new user is acquired or a specific action is completed, such as a form fill, subscription, download, or purchase.
• CPI (Cost per Install) – Specific to mobile apps, this model pays when a user installs and opens an app, making it ideal for mobile marketers focused on driving installations and acquiring active users.
• CPE (Cost per Engagement) – Target post-installation events within mobile apps, paying when a user completes an action like registration or in-app purchases, enhancing the quality of converting users.
• CPL (Cost per Lead) – Perfect for lead generation, this model pays when a user provides personal details, including name, email, and/or zip code, through form fills, PDF downloads, newsletter sign-ups, or survey completions.
• CPS (Cost per Sale) – This model pays partners when a customer completes a full-cost purchase or cash-on-delivery, reducing vulnerability to fraud and proving effective in e-commerce.
• CPC (Cost per Click) – Drive interest and traffic by paying when a user clicks on an ad and is redirected to your desired landing page. Commonly used for targeted communication exposure.
• PPC (Pay per Call) – Pay for generated qualified sales call leads, a beneficial model for marketers in high-touch verticals like insurance, finance, and home services.

Perform^[cb] stands out by offering all of the above for your customer acquisition strategy. Contact our team of experts today to explore how we can maximize your ROI.

Perform^[cb] Client Success Stories: Outcome-Based Marketing (OBM) in Action

At Perform^[cb] we don’t just talk the talk – we proudly walk the walk. Explore some of our client’s triumphs, showcasing the effectiveness of a thoughtfully developed outcome-based marketing (OBM) strategy:

CPI (Cost per Install) Model

• A premium subscription streaming service was interested in scaling its user acquisition with paid subscriptions as the ultimate goal. Perform^[cb] used a CPI approach resulting in a 40% increase in installs to their mobile app quarter-over-quarter and a show-stopping 215% increase in paid subscribers month-over-month.
• A leading car insurance app was looking to grow its brand’s presence in the car insurance industry. Perform^[cb] simultaneously ran a CPA and CPI campaign, driving the marketer to #1 in the Apple App Store in the car insurance category and a 75% increase in new user acquisition month-over-month.

CPE (Cost per Engagement) Model

• A well-known photo-printing app was looking to increase app installs and new first-time purchasers. Perform^[cb] shifted the marketer to a CPE model, resulting in over 130,000 first-time purchases.

CPL (Cost per Lead) Model

• QuoteWizard was looking to scale its customer base while simultaneously improving its lead quality. By utilizing Perform^[cb]‘s hyper-targeted lead tier system, the insurance marketer ran a CPL strategy that resulted in a 92,000% increase in high-quality leads quarter-over-quarter.

CPS (Cost per Sale) Model

• Babbel came to Perform^[cb] to incrementally increase sales. Our team implemented a new first-click attribution model, resulting in a 130% increase in incremental orders year-over-year and a 24% decrease in their CPA.

PPC (Pay per Call) Model

• A popular health and lifestyle marketer came to Perform^[cb] to generate new insurance policies on a PPC basis. Through two strategic PPC campaigns, this marketer saw a 56% increase in revenue and a 51.2% conversion rate year-over-year.

Reach out to our team of OBM experts to see similar results for your brand!

Unleash Real Results through Outcome-Based Marketing (OBM)

Outcome-based marketing (OBM) offers endless opportunities to decipher what truly works for your brand’s customer acquisition goals. At Perform^[cb], we not only understand the potential of OBM but also excel in driving real and measurable results.

Explore the intricacies of outcome-based campaigns with exclusive insights from Perform^[cb]‘s OBM experts – access here. Ready to experience the power of OBM today? Get in touch with one of Perform^[cb]‘s customer acquisition experts.