Performance Marketing Vs Growth Marketing for Startups

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Performance marketing vs growth marketing

Are you a business owner, marketer, or someone with an interest in marketing? If so, you’ve likely heard the terms ‘performance marketing’ and ‘growth marketing’ thrown around. But what do these terms really mean and how do they differ? In this blog post, we’ll explore the differences between performance marketing and growth marketing to help you determine which is best for your business. Keep reading to learn more!

What Is Performance Marketing?

Performance marketing is a marketing strategy that focuses on achieving short-term results, such as increased sales or more leads. It’s different from growth marketing, which is focused on building long-term relationships and developing customer loyalty.

Performance marketing is often used to increase sales or reach new customers. It can be used to promote products and services quickly and cheaply, without investing in long-term customer relationships. Performance marketing can be used to promote new products or services, increase sales of existing products or services, or drive traffic to a website.

Some common methods of performance marketing include email marketing, social media marketing, and direct mail marketing. Email marketing is the most common form of performance marketing and is used to promote new products and services, increase sales of existing products or services, or drive traffic to a website. Social media marketing is used to create relationships with customers and followers through platforms such as Facebook, Twitter, and LinkedIn. Direct mail marketing is used to send promotional materials to customers such as catalogs, coupons, and special offers.

What Is Growth Marketing?

Growth marketing is a type of marketing that focuses on increasing revenue and business growth. Growth marketing tactics include things like creating effective customer acquisition, retention, and revenue generation strategies. Performance marketing, on the other hand, is focused on maximizing the return on ad spend. This can be done through things like optimizing ads for clicks or impressions, targeting specific demographics, and using creative content to capture attention.

How Are Performance and Growth Marketing Different?

When it comes to marketing, there are two main types: performance marketing and growth marketing. Performance marketing is all about maximising results for a company while growth marketing is focused on increasing the number of customers and users.

However, there are some key differences between the two that can affect how companies go about achieving their objectives. Here are four main ways in which these strategies differ:

  1. Goals: Growth marketing is goal oriented performance marketing that typically focuses on short-term goals such as increased sales or profits, whereas growth marketing is more long-term oriented and focuses on generating greater customer engagement and loyalty over time.
  2. Frequency: Growth marketing requires more frequent action than performance marketing as the latter aims to achieve specific results rather than developing longer term relationships with customers. Growth marketing, however, requires constant interaction in order to keep customers engaged and loyal over time.
  3. Tactics: Strategies used in performance marketing tend to be scatter shot while those used in growth marketing often consist of multi targeted tactics. Performance marketers use mainly focused strategies that aim to produce quick results while growth marketers will use a variety of tactics that will result in sustained success over time.
  4. Costs: Cost per acquisition (CPA) for growth marketing is higher than for performance marketing. In order for performance marketers to achieve quick wins they need lower CPA, whereas growth marketeers require a higher CPA in order not to attract buyers.

There are also other small yet important distinctions between the two types of advertising such as focus groups being used more often with growth marketing, due its ability to get deeper insights from consumers.

Benefits of Performance Marketing for Startups

There are many benefits to performance marketing for startups. It can help to:

  1. Increase brand awareness and interest.
  2. Drive more leads and sales.
  3. Create a more positive image for the startup.
  4. Increase brand credibility.
  5. Build a stronger brand name.
  6. Create a better reputation for the startup.
  7. Attract new investors and partners.
  8. Build a stronger company culture.

Benefits of Growth Marketing for Startups

Performance marketing is all about creating a sense of urgency and driving demand for a product or service.

Growth marketing, on the other hand, seeks to deliver value to customers over time.

The benefits of growth marketing for startups are manifold. It can help startups to:

  1. Build a loyal customer base.
  2. Establish themselves as leaders in their industries.
  3. Achieve scale quickly and efficiently.

Leveraging Both Strategies to Enhance Startup Success

In today’s market, it’s more important than ever to differentiate your startup from the rest. One way to do this is through performance marketing and growth marketing.

Performance marketing focus on short-term results such as increased website traffic or signups, while growth marketing focuses on long-term results such as increased revenue or customer base.

The benefits of each strategy should be leveraged in order to increase startup success. Here’s a summary of the key points:

Performance Marketing

Short-term results can be incredibly helpful in terms of building initial traction and establishing credibility with potential customers. By focusing on measurable goals, you can track progress and measure whether your efforts are producing tangible benefits. Additionally, when done correctly, performance marketing campaigns can be very cost-effective.

Growth Marketing

Growth marketing is focused on building a long-term relationship with customers. It’s about creating value for them and providing them with products and services they can’t find anywhere else. This type of marketing is often more expensive, but it can result in much larger profits down the line.

By combining performance and growth marketing, startups can achieve the best possible results. By understanding which strategy is best suited for your startup, you can ensure that your efforts are focused on achieving the desired outcome.

The two marketing strategies can be complementary or competitive, depending on the company’s goals. When used in tandem, they can help startups achieve success in a number of ways. By focusing on short-term results and driving traffic to their website, performance marketing helps startups increase revenue. While, by nurturing relationships with customers and providing value that helps them grow their businesses, growth marketing helps startups build trust and loyalty. In addition, by identifying which markets are most receptive to a startup’s product or service, performance marketing helps startups focus their efforts and avoid wasting time and resources on markets that are not profitable.

While both strategies can be used successfully by startups, it is important to understand the goals of the company and tailor its marketing strategy accordingly. By understanding how performance marketing and growth marketing work together, startup companies can optimise their efforts and reach their intended goals.


As a startup, you likely have two goals: to achieve rapid growth and to optimise your customer experience. Growth marketing is designed to help you achieve the former, while performance marketing is focused on improving the latter.

There are many benefits of using both strategies together in terms of growth. Growth marketing can help drive more traffic to your site and increase Conversion Rates. Meanwhile, performance marketing can create stronger customer relationships and better product awareness. When used correctly, these two approaches can help startups thrive in today’s competitive marketplaces.

One of the primary benefits of using growth marketing over performance marketing is that it can help startups achieve sustainable growth. A study by The New York Times found that 96% of startups that grew their revenue by more than 50% maintained or increased profitability over time (compared to only 48% of those who grew revenue by 30-50%).

Performance marketing, on the other hand, focuses primarily on short-term spikes in traffic or conversions. Though this type of campaign can produce immediate results, it’s often unsustainable and eventually leads to decreased traffic and conversion rates. Growth marketing, on the other hand, is designed to provide a pipeline of consistent visitors and/or customers who are evangelised through content and engaged with offers across various channels.

Though both strategies can be effective in enhancing startup success, it’s important to choose the right one for your business. By comparing performance and growth marketing strategies, you can ensure that you’re maximising your investment and achieving the most long-term results.

Performance Marketing Vs Growth Marketing: Pros & Cons

Advantages and Disadvantages of Growth Marketing

Growth marketing focusses on building a relationship with customers and nurturing them over time. It’s all about getting customers to come back and refer their friends.

Growth Marketing – Pros:

  1. Greater long-term results: Growth marketing strategies tend to produce better long-term results than performance marketing strategies. This is because growth marketing strategies are more patient and nurturing. They focus on building relationships with customers over time, which leads to a deeper understanding of their needs and a stronger connection with the brand. This ultimately leads to more loyal customers and higher sales.
  2. Easier conversion of leads into sales: Growth marketing strategies are typically more effective at converting leads into sales than performance marketing strategies. This is because growth marketing focuses on building relationships with customers and providing them with relevant information in a way that is easy to understand. Performance marketing, on the other hand, is often geared towards driving results immediately – which can be difficult if not impossible to do when it comes to converting leads into sales.
  3. Greater customer engagement: Growth marketing strategies are often more engaging and interactive than performance marketing strategies. This is because they focus on building a relationship with customers and giving them the opportunity to feel like they’re part of something special. This makes them more likely to take action and refer their friends.
  4. Greater customer loyalty: Growth marketing strategies are often more likely to create loyal customers than performance marketing strategies. This is because they focus on building a relationship with customers and providing them with valuable information and services. This leads to customers feeling appreciated and like they’re part of a community. This in turn leads to them being more likely to refer their friends to your business and continue to patronise you in the future.

Growth Marketing – Cons:

  1. More time and effort required: Growth marketing strategies are typically more time and effort intensive than performance marketing strategies. This is because they require a greater level of engagement from customers – which can be difficult if not impossible to achieve.
  2. Greater financial investment required: Growth marketing strategies typically require a greater financial investment than performance marketing strategies. This is because they require longer-term engagement with customers and the development of a deeper relationship.
  3. Greater risk associated with growth: Growth marketing often involves greater risk than performance marketing strategies. This is because it’s possible for companies to invest too much time and money into a relationship with their customers, only to have that relationship fail – leading to wasted time and money.
  4. Greater competition: Growth marketing Strategies often lead to greater competition from other businesses in the market place, as they’re able to attract more customers with better offers and services.

Establishing a Budget that Works for Your Startup

There are a few things to keep in mind when setting your startup marketing budget.

  1. Make sure you account for the total cost of running your marketing campaign, including salaries and overhead costs.
  2. Be realistic about how much you can realistically spend on advertising and marketing efforts.
  3. Consider how much you can afford to lose in terms of revenue before you decide to pull the plug on your marketing campaign.
  4. Be sure to track your progress and adjust your budget as needed to ensure that your startup marketing efforts are achieving their desired results.

Tips on Choosing the Right Platforms for Your Campaigns

Assessing the Benefits of Performance Vs Growth Marketing

Performance marketing platforms allow startups to track and measure the performance of their campaigns in real time. This can help them identify which ads are working best and which ones need tweaking, whether it be through adjustments to creative or targeting. In addition, these tools often come with built-in tracking mechanisms that make it easy to see how many visitors came from a particular advertiser, what type of device they were using, etc.

Growth marketing platforms also offer this level of measurement but also provide access to a wider audience than just those who have clicked on an ad campaign. Growth marketing platforms can help startups reach consumers who have not yet even heard of their product or service – via ‘influencers’. Through talking about your product these influentials can create a buzz and attract more customers organically.

Growth marketing platforms also often come equipped with tools that allow you to track user behaviour and engage with them directly, meaning that startups can convert leads into paying customers much more quickly than through performance marketing alone.

Both types of platforms have their own set of benefits and drawbacks, so it’s important to carefully consider which one will work best for your startup before investing in a campaign.

Measuring Success with Performance & Growth Metrics

When choosing a platform for your startup marketing campaigns, it’s important to consider which metrics are most important to you. Performance and growth metrics can help you track the success of your campaigns and measure your progress over time.

Performance metrics should focus on objective measures like website traffic or leads generated. These numbers tell you how well your campaign is performing relative to its goals.

Growth metrics, on the other hand, look at longer-term changes in behaviour or engagement with your content. Improvements here may not be as easily quantifiable, but they’re a valuable sign that you’re influencing customers long term.

There are dozens of platforms out there that can help with startup marketing campaigns. Choosing the right one for your company will require some careful consideration. Use these tips to help you make the right choice.

Leveraging Resources for Maximum ROI

There are a number of platforms that startups can use to market their products and services. Each has its own strengths and weaknesses, so it’s important to choose the right one for your campaign.

One of the most important factors to consider when choosing a platform is its audience. Some platforms are better suited for performing marketing tasks such as acquiring new customers or generating leads, while others are better suited for growth marketing tasks such as driving traffic to your website or increasing brand awareness.

Another important factor to consider is the cost of using the platform. Some platforms are free, while others require a subscription fee. It’s important to find a platform that offers a good value for your money.

Finally, it’s important to consider the resources that are available to you through the platform. Some platforms offer a wide range of tools and resources, while others are limited in scope. It’s important to find a platform that offers the resources you need to achieve your marketing goals.

Measuring the Impact of Each Strategy

In order to make an informed decision as to which marketing strategy is best for your startup, it’s important to measure the impact of each strategy.

Performance marketing aims to improve product uptake and hence revenue. Growth marketing, on the other hand, attempts to increase customer lifetime value (LTV). While both strategies have their benefits and drawbacks, measuring the impact of each can help you choose the most effective approach for your business.

One way to measure the impact of performance marketing is through activation rates – how many leads are converted into customers. Activation rates can be affected by a number of factors, such as providing valuable content that engages users and encouraging them to take action (such as filling out a form), targeting key audiences with relevant offers and content, and building a strong relationship with customers. By knowing which variables are impacting activation rates, you can adjust your tactics accordingly in order to optimise results.

Similarly, LTV can be calculated using various metrics such as acquisition costs (the amount you spend on acquiring new customers), churn rate (the percentage of customers who cancel their subscription within twelve months), customer lifetime value per month (CLVPM – how much money a customer represents over the course of one month) or Gross Margin per Customer Lifetime Value (GMCLV). By understanding which metric correlates with better results for your business, you can make adjustments down the line in order to improve results even further.

Focusing on CLVPM allows startups particularly room for growth because it’s more indicative of long-term viability than some other metrics: For example, GMCLV only considers a customer’s activity from month one until he or she cancels; however there could be plenty of potential transactions/customers beyond those 12 months who may contribute positively towards company growth. Additionally, CLVPM takes into account not just monetary contributions but also time spent engaged with a brand – whether that’s through listening attentively or simply engaging with ads/content – so brands that offer value across multiple touch points will see higher CLVPMs than those that don’t achieve equivalent engagement levels across all channels.

Ultimately though measuring success isn’t always straightforward: In some cases data may not accurately reflect what has actually happened in terms of activation rates or LTV because user behaviour is dependent upon numerous external factors beyond your control like weather conditions or political unrest . In these situations anecdotal evidence gathered from founders/ CEOs might provide an improved picture of success since they’re typically personally invested in their company and can therefore better quantify the results of marketing actions.

While there are a number of methods available for measuring the impact of marketing strategies, always remember to take into account the unique needs and demographics of your business in order to optimise results. By doing so you’ll be able to build a foundation upon which future growth can be built, ensuring that your startup reaches its full potential.

Conclusion: The Key to Effective Startup Marketing

It can be difficult to determine the best marketing strategy for a startup. First, you need to decide what your business is selling. Do you have a product or service people want? Once you know that, it’s time to figure out which marketing approach will work best for you.

Performance marketing has been proven to be more effective than growth marketing when it comes to driving short-term customer acquisition. This means creating incentives and rewards for customers who buy your product or service right away. These may include free products, exclusive deals, or even cash bonuses.

Growth marketing, on the other hand, focuses on building long-term relationships with customers by providing value over time. This could mean providing valuable insights on your industry or offering discounts or free shipping on future purchases. Whichever approach works better for your business is up to you!

The key to effective startup marketing is leveraging both performance and growth marketing strategies to maximise success. Performance marketing can help startups reach their goals quickly and cost-effectively, while growth marketing can help them establish a strong foundation for long-term success. When combined, these two strategies can create a powerful and integrated plan that will help startups reach their goals and maximise their potential. By establishing a budget that works for them, choosing the right platforms for their campaigns, and measuring the impact of each strategy, startups can ensure they are getting the most out of their efforts.

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