HYOSUNG TNC

In the 1990s, while analyzing customer purchase receipts, Walmart in the United States found one peculiar aspect. Every Wednesday, customers who bought baby diapers often bought beer at the liquor section. There may not seem to be any connection, but apparently there was. Husbands who had gone out to buy diapers for their wives were buying beer. Based on this analysis, every Wednesday Walmart stocked the display case next to the diaper section with beer and held a beer event. Naturally, store sales rose.

Walmart's best practice of increasing sales through accurate analysis and simple but effective actions is an example of good performance marketing, a performance-oriented marketing strategy. Hyosung is expanding its performance marketing strategy for a more effective marketing.

Analytics and execution to reduce bounce rates - performance marketing

Performance marketing is a results-oriented marketing strategy that involves setting goals for achievements and continuously working on improving performance to reach those goals. While many marketing strategies emphasize exposure, aiming to showcase products and brands as widely as possible across various channels such as billboards, TV, and social media, there are numerous drop-offs from the moment an ad is exposed to when a consumer makes a purchase. Even if an ad reaches a thousand people initially, only one person may end up becoming the final purchaser. To reduce these drop-offs and increase efficiency, an effective marketing strategy is needed, much like performance marketing.

Performance marketing has recently been gaining more attention, mainly due to the widespread use of smartphones. In the past, there were methods to analyze and track customer behavior, but the analyses did not provide detailed insights or a wide range of in-depth data. While cases like Walmart may allow analysis through purchase receipts alone, there was still a lack of evidence on how to prevent potential customers from dropping off and converting them into actual buyers. However, at present, all our actions are connected, recorded, and analyzed online through smartphones. We can now analyze specific data on consumer behavior, such as which keywords were searched to make a purchase and the paths they took to arrive at a website. This data allows to make improvements to advertisements based on analysis, enhancing performance and increasing efficiency. That's why performance marketing, which is results-oriented and focuses on utilizing data analysis, has been attracting more attention.

Detailed analysis of data is critical to achieving the goals of performance marketing, and the use of digital marketing tools for this purpose is expanding. Representative performance marketing tools include GA4 and SEM RUSH. GA4 is the 4th version of Google Analytics, a log analysis tool that collects both website and app data to understand customer tendencies in detail. In the meantime, many companies have been using UA tools provided by Google, but as of July 1 of 2023, it was decided not to process new data, and a quick transition is now being made. GA4 uses Google's machine learning technology to create exploration reports. This allows tracking of customer behavior such as which keywords they use to access a website, what items are purchased, and what devices are used to access the website. Through this, brand awareness and campaign performance can be measured and compared, and analyzed in detail. Furthermore, GA4 allows in-depth analysis of performance by tracking conversion rates and facilitating Customer Relationship Management (CRM). This means businesses can ascertain the ratio of customers who purchased other products after buying one product, conduct customer segmentation based on products, perform product response testing, and plan events accordingly. Unlike the previous UA tool, which analyzed visitors according to predefined guidelines, GA4 extracts a vast amount of diverse information to provide users with the desired insights. Users can then utilize this information to accurately understand the needs of site visitors.

SEM RUSH is an online marketing toolkit that can be used for content marketing, market research, and SNS keyword research through search engine optimization (SEO) databases, improving content that can increase search rankings, tracking and analyzing various websites and marketing strategies, brand reports, social media posts, and advertisements to attract Internet users' attention and help them enter the website. With SEM RUSH, you can take advantage of a report function that extracts data such as traffic and inflow channels by entering a URL address, and a project function that extracts data suitable for specific situations. For example, Social Media Tracker tracks social media follower growth and activity data, and Content Analyzer analyzes website content to track the content that users see most often. With SEM RUSH, you can analyze your competitors’ digital marketing strategies and easily derive data to use for your own performance marketing.

By effectively utilizing digital marketing tools like GA4 and SEM RUSH, businesses can gain insights into various aspects of user behavior. They can identify the keywords users used to visit their website, track the exposure levels of different advertisements, and understand the specific conditions under which visitors convert into customers. With this data as a foundation, businesses can formulate strategic performance marketing plans and operate their websites efficiently.

One-click leads to results

Performance marketing considers actions such as purchases, sign-ups, app installations, and survey participation as a single outcome, viewing clicks and conversions as achievements. Depending on the number of these achievements, the advertiser pays for the advertising. Performance marketing makes it simple to measure the effectiveness of current campaigns and the return on investment (ROI). It allows advertisers to efficiently manage limited budgets and easily assess whether their advertisements are performing well.

Certainly, the capabilities of online data collection far exceed those of offline methods. For performance marketing, which emphasizes tracking and results, online platforms offer invaluable benefits. Let's consider aspiring YouTube creators as an example. Will uploading entertaining or provocative videos automatically lead to more subscribers and ad revenue? While luck might play a role at times, successful YouTube creators understand the importance of being data-sensitive. YouTube, as an online platform, provides a wealth of diverse and accurate data. Features like analyzing video views, average watch time, and popular content are automatically available. Leveraging this data allows creators to strategize and attract more viewers to their videos. Strategic YouTube creators are essentially using performance marketing naturally.

Korea's leading interior platform, ‘Bucketplace’, also achieved higher marketing effectiveness through effective remarketing. Remarketing refers to marketing strategies that encourage potential customers who have interacted with a brand to engage again. For instance, if a customer logs in to the website and adds products to their shopping cart but leaves without completing the purchase, the brand can send a reminder email later to bring back their interest. This is a typical example of remarketing. 'Bucketplace’ divided its customers not only based on demographic factors such as gender and age but also on various criteria such as the duration after signing up, purchase history, and recent activities. Customers were classified based on their in-app behavior as well. Thanks to online-based performance marketing, such segmentation was made possible. Using this data, the platform focused on remarketing efforts towards customers who had signed up but not made any purchases. For customers with a purchase history, they concentrated on remarketing during moving seasons or when there was a change in the season, which typically coincided with increased interest in home improvement and redesigning needs.

Hyosung's renewed website - will it raise performance marketing results?

Hyosung also felt the need for performance marketing and conducted a website renewal based on data. First, the first keyword on the renewal website that Hyosung paid attention to is ‘global’. This is because the data show that majority of product consumers are global consumers and access Hyosung's website from various countries such as China, India, and Brazil. Based on this, the new website connects pages by country. In order to increase the utilization of global customers, efforts were made to increase the participation of customers around the world, such as introducing a design structure that facilitates multilingual processing and preparing contents for diverse overseas consumers.

The second keyword is ‘improving accessibility’. Customers who visit Hyosung's website can explore what technologies Hyosung provides for eco-friendly products, what the functions of the products are, and how to cooperate with Hyosung. To help users who visit Hyosung's website find the information they are looking for, the ease of navigation has been enhanced through detailed search tools and search filters by category. Displaying easily accessible products separately enhances accessibility and usability. Although it may seem simple as customers can easily obtain information, achieving performance marketing success becomes within reach.

For the past 70 years, Hyosung has been creating solutions that revolutionize customers' lives and industries, spanning from fibers and materials chemistry to heavy industries and renewable energy. Now, with a new brand mission, Hyosung is committed to being the first to practice innovation and sustainability for a better tomorrow with our customers. One of the methods to accomplish this mission is through performance marketing, and the renewal of the website is also part of the journey toward achieving these goals. The key to the success of performance marketing lies in data. As a global company striving for innovation and customer satisfaction, Hyosung will continue to listen to customers' voices based on data and evolve into an innovative enterprise.