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Why we care about performance marketing

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Why we care about performance marketing

Performance marketing refers to a variety of online advertising programs where parties are paid when a specific action  is completed. It’s often associated with pay-per-click (PPC) models on search engines (where advertisers pay for clicks versus impressions). However, it isn’t limited to that, encompassing any marketing approach that’s tied to a specific action. 

In addition to the traditional affiliate relationships with publishers, performance marketing opportunities now include influencers on social media, e-commerce-focused web destinations and creators all across the digital landscape. Tech platforms help broker these relationships by setting and measuring specific goals and compensation that help deliver results from the third-party publisher, creator or influencer back to the brand.


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It can be a powerful tool for marketers since it allows you to track and optimize campaigns in real-time based on measurable actions. It can help with the ROI of your marketing budget by providing data and insight about how, when, and where to allocate your spend. 

Even so, performance marketing remains vulnerable to fraud from bots and other malicious actors. Marketers need to be vigilant and skeptical about the data they’re seeing to avoid paying for actions that aren’t real. 

There are many tools and software solutions that facilitate the planning, launch, tracking and optimization of performance marketing campaigns. These tools range from simple website tracking tools to more sophisticated platforms that offer a complete suite of performance marketing capabilities. In this post we’ll cover:

  • What is performance marketing?
  • Types of performance marketing models.
  • Why marketers should care 
  • How reliable is it?
  • Who uses or works with performance marketing tools?
  • What types of tools or software enable performance marketing?
  • How performance marketing can help marketers succeed.
  • The future of performance marketing.
  • Additional reading.

What is performance marketing?

Performance marketing is any online marketing activity that can be tracked and attributed to a specific action or result. 

It encompasses any digital marketing tactic that can be tied to a measurable action – influencer, video, affiliate, search, and content marketing are all fair game in the performance marketing ecosystem.

There are three main types of performance marketing payment models:

  • Percent  of sale – The advertiser pays a commission on each sale generated.
  • Leads – The advertiser pays a fixed amount for each lead generated.
  • New customers – The advertiser pays a fixed amount for each new customer acquired.

There are also hybrid performance marketing models that encompass multiple payment types. For example, an advertiser might pay a lead generation fee plus a percent of sale commission to their performance marketing partner.

It’s important to note that performance-based marketing tactics like paid search, where advertisers only pay when a user clicks on an ad, is not performance marketing. While PPC/CPC campaigns focus on an action (the ad click), they don’t necessarily lead to a performance-based outcome like a sale or sign-up. 

Why marketers should care about performance marketing

Performance marketing opportunities have opened up beyond traditional affiliate relationships with publishers to include influencers on social media, e-commerce focused web destinations and creators all across the digital landscape.

Tech platforms help broker these relationships by setting and measuring specific goals and compensation that help deliver results from the third-party publisher, creator or influencer back to the brand.

How reliable is it?

It’s impossible to talk about digital advertising (the machine that drives performance marketing) without addressing the $68 billion dollar elephant in the room—ad fraud.

 Globally, digital ad fraud will cost companies nearly $70 billion this year, with $23 billion lost by U.S. companies alone. That will amount to about $100 million per day by 2024.

A (short) list of why ad fraud happens:

  • Bots simulate real user traffic on websites or apps to generate ad impressions.
  • Invalid traffic is generated by humans who click on ads to deplete their competitors’ budgets, or are paid to click/view ads (click farms).
  • Fake websites (with fake traffic) are created to inflate impressions for programmatic ad buys.
  • Domain spoofing imitates a premium website (e.g., the New York Times) to sell fake ad inventory.
  • Cookie stuffing which uses affiliate tracking cookies placed on a user’s device to track a purchase on a site like Amazon (thus stealing the commission from a legitimate affiliate).
  • Ads are stacked and the same inventory is sold multiple times – technically the impressions are real, but web visitors only see the ad on top of the stack
  • App install fraud occurs when a bot generates fake app installations or a user is incentivized to install an app and then quickly uninstall it

Since performance marketing campaigns look at actions (sales, conversions, leads) rather than superficial metrics (views, clicks, impressions) it’s theoretically a better approach.

1656527986 955 Why we care about performance marketing

Even so, the scale of click fraud is so massive it inevitably impacts the amount you’ll pay for your desired action. The cost of digital ads is increasing – up 11% in the first quarter of 2022 versus the previous year with no noticeable improvement in performance.

That makes it more expensive for your affiliates and partners to buy digital ads and increases the cost per action (CPA) for you.

Another issue: while faking sales is difficult, faking certain actions isn’t, particularly on mobile devices. Bots can simulate real user downloads and app installs, click on links and fake in-app events.

The best way to ensure that your performance marketing campaign is, in fact, performing is to monitor the quality (and validity) of the actions you’re paying for.  For example, you can use a lead verification tool like LetsVerify to ensure that the leads you’re paying for are real people who have been contacted and are interested in what you’re selling.

Read next: Gannett ad mishap highlights concerns about programmatic advertising

It’s also worthwhile to monitor your CPA along with lead quality and/or sales volume. If your CPA is going up (or suddenly spikes), this can be  a sign that you’re being targeted by fraudsters.

Performance marketing is a very specific and data-driven — and digital — approach to generating results, so it tends to fall within the purview of digital marketing teams. 

That said, regardless of where performance marketing sits within an organization’s marketing ecosystem, many people/departments use its tools and strategies.

Here are some ways different groups use performance marketing technologies:

  • Marketers plan, execute and measure performance-based campaigns.
  • Publishers track performance and get paid for results.
  • Influencers find opportunities, set goals and measure performance. 
  • Advertisers find publishers and influencers to work with, set performance-based goals and track results.
  • Business growth leaders identify and track opportunities for growth.
  • Agencies find and work with publishers and influencers on performance-based campaigns. 

Tech tools in the performance marketing space span from tracking and attribution to influencer and affiliate management. They also include features for identifying and reaching out to influencers, publishers, and partners.

The types of performance marketing tools include:

  • Partner software: This helps brands find, connect and manage relationships with performance-based partners like publishers, influencers and affiliates.  Tools like PartnerStack and Everflow enable businesses to manage influencers and referral partners (e.g., consultants, agencies, customers), track their performance and get paid for results. 
  • Referral/affiliate software:  This allows marketers to manage affiliate programs and partners with features that enable commission payments, program launch and marketing automation (e.g., emails, social media, paid search, etc.) Tools like LeadDyno and OmniStar Affiliate fit within this category. They also help with recruitment, SEO and tracking/reporting.
  • Influencer management software: Influencer management software helps brands identify, manage and track relationships with influencers. Tools like Grin (for eCommerce businesses) and Upfluence help with influencer discovery and outreach, performance tracking, campaign management and payments. 
  • Marketing attribution software: Businesses can use this to attribute results to specific marketing activities using marketing analytics and data. Attribution tools also help marketers understand which activities are driving the most ROI. Tools like Google Analytics and MixPanel focus on website analytics while campaign-specific tools like Sprinklr and Pointillist measure customer journey analytics across all digital marketing channels. 

There’s a lot of crossover with features and functionality among these types of tools. So it’s important to choose a performance marketing platform that offers features specific to your needs and easily integrates with your tech stack.

How performance marketing can help marketers succeed

Performance marketing can be a very effective way for marketers to drive results and grow their business. Instead of paying up front for advertising programs and inventory that may not produce results, performance-based campaigns are a low-risk way to test and measure what’s working (and what’s not.) 

In addition, performance marketing allows you to effectively allocate your marketing budget by only paying for results. This can help stretch the marketing budget further and ensure that every dollar is working as hard as possible to drive ROI. 

Key benefits include:

  • Trackability:  Performance marketing provides marketers with data and insights that can be used to continually optimize campaigns and improve results. Campaigns are tied to specific transactions and KPIs, so performance can be tracked and reported at a granular level.
  • Diversification: You have the capacity to expand your reach beyond traditional sales channels and revenue streams. It gets your partners and affiliates involved in the success of your business, which can lead to long-term relationships. It also helps you reach new audiences and niche markets in organically discoverable ways (e.g., when an influencer promotes your brand or product to their followers). 
  • Efficiency: It is a low-risk way to grow your business. You only pay for results (e.g., a sale, sign-up, etc.), so there’s no wasted spend on inventory or ad placements that don’t produce results.
  • Creativity: Working with partners, performance marketers can develop unique campaigns and content that resonates with their specific niche audiences. This means you capitalize on new trends, technologies, and channels as they emerge.

What’s next for performance marketing

There are several digital marketing trends converging right now that are impacting the efficiency and ROI of standard CPM and CPC/PPC-based digital marketing programs. 

  • Digital ad fatigue: The average person is exposed to between 6000 and 10,000 ads a day. This is fueling an ad avoidance phenomenon among internet users. Most consumers are proactively avoiding advertising with ad blockers, ad skipping and the consumption of ad-free media. According to Blockthrough, an adblock recovery platform, 81% of people who use ad blockers in the U.S. do so to avoid annoying or intrusive ads.
  • Increased competition: There’s a marked increase in advertiser competition online, as the number of brands and businesses competing for consumer attention continues to grow. Two-thirds of global ad spending will be digital in 2022. According to eMarketer, spend is expected to exceed $867 billion by 2026.
  • Data and privacy issues: Consumer concerns about how companies use their data, combined with an increased need to comply with privacy laws like GDPR and CCPA, are impacting the effectiveness of digital marketing campaigns. Consumers are increasingly aware of their data being collected and used and less willing to click on ads or give up personal information. 
  • The death of cookies:  With the demise of third-party cookies on browsers like Safari, Firefox, and (very soon) Chrome, digital marketers will need new ways to target audiences and track campaigns. This has marketers relying on  first-party data and server-side tracking, or the use of alternative tracking methods like unique identifiers that are privacy compliant. 

Performance marketing, which focuses on quality over quantity, enables marketers to develop unique campaigns on emerging digital channels which tend to resonate more with digital audiences. Since they’re tied to actual results (e.g., sales, revenue and leads), they also deliver a higher ROI. 

These campaigns can also garner a wide reach in terms of impressions, clicks, and views since performance marketing partners use a variety of tactics, including reaching out to their existing networks. 

As a result, performance marketing is poised to continue growing in popularity among marketers looking to drive real results from their digital marketing programs. 

Additional reading

Want to learn more about performance marketing’s capabilities and applications across the digital landscape? Here are some resources to help you improve your practices:


About The Author

1648711309 919 Why we care about traditional content management systems the original

Jacqueline Dooley is a freelance B2B content writer and journalist covering martech industry news and trends. Since 2018, she’s worked with B2B-focused agencies, publications, and direct clients to create articles, blog posts, whitepapers, and eBooks. Prior to that, Dooley founded Twelve Thousand, LLC where she worked with clients to create, manage, and optimize paid search and social campaigns.

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The Complete Guide to Becoming an Authentic Thought Leader

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The Complete Guide to Becoming an Authentic Thought Leader

Introduce your processes: If you’ve streamlined a particular process, share it. It could be the solution someone else is looking for.

Jump on trends and news: If there’s a hot topic or emerging trend, offer your unique perspective.

Share industry insights: Attended a webinar or podcast that offered valuable insights. Summarize the key takeaways and how they can be applied.

Share your successes: Write about strategies that have worked exceptionally well for you. Your audience will appreciate the proven advice. For example, I shared the process I used to help a former client rank for a keyword with over 2.2 million monthly searches.

Question outdated strategies: If you see a strategy that’s losing steam, suggest alternatives based on your experience and data.

5. Establish communication channels (How)

Once you know who your audience is and what they want to hear, the next step is figuring out how to reach them. Here’s how:

Choose the right platforms: You don’t need to have a presence on every social media platform. Pick two platforms where your audience hangs out and create content for that platform. For example, I’m active on LinkedIn and X because my target audience (SEOs, B2B SaaS, and marketers) is active on these platforms.

Repurpose content: Don’t limit yourself to just one type of content. Consider repurposing your content on Quora, Reddit, or even in webinars and podcasts. This increases your reach and reinforces your message.

Follow Your audience: Go where your audience goes. If they’re active on X, that’s where you should be posting. If they frequent industry webinars, consider becoming a guest on these webinars.

Daily vs. In-depth content: Balance is key. Use social media for daily tips and insights, and reserve your blog for more comprehensive guides and articles.

Network with influencers: Your audience is likely following other experts in the field. Engaging with these influencers puts your content in front of a like-minded audience. I try to spend 30 minutes to an hour daily engaging with content on X and LinkedIn. This is the best way to build a relationship so you’re not a complete stranger when you DM privately.

6. Think of thought leadership as part of your content marketing efforts

As with other content efforts, thought leadership doesn’t exist in a vacuum. It thrives when woven into a cohesive content marketing strategy. By aligning individual authority with your brand, you amplify the credibility of both.

Think of it as top-of-the-funnel content to:

  • Build awareness about your brand

  • Highlight the problems you solve

  • Demonstrate expertise by platforming experts within the company who deliver solutions

Consider the user journey. An individual enters at the top through a social media post, podcast, or blog post. Intrigued, they want to learn more about you and either search your name on Google or social media. If they like what they see, they might visit your website, and if the information fits their needs, they move from passive readers to active prospects in your sales pipeline.

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How to Increase Survey Completion Rate With 5 Top Tips

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How to Increase Survey Completion Rate With 5 Top Tips

Collecting high-quality data is crucial to making strategic observations about your customers. Researchers have to consider the best ways to design their surveys and then how to increase survey completion, because it makes the data more reliable.

→ Free Download: 5 Customer Survey Templates [Access Now]

I’m going to explain how survey completion plays into the reliability of data. Then, we’ll get into how to calculate your survey completion rate versus the number of questions you ask. Finally, I’ll offer some tips to help you increase survey completion rates.

My goal is to make your data-driven decisions more accurate and effective. And just for fun, I’ll use cats in the examples because mine won’t stop walking across my keyboard.

Why Measure Survey Completion

Let’s set the scene: We’re inside a laboratory with a group of cat researchers. They’re wearing little white coats and goggles — and they desperately want to know what other cats think of various fish.

They’ve written up a 10-question survey and invited 100 cats from all socioeconomic rungs — rough and hungry alley cats all the way up to the ones that thrice daily enjoy their Fancy Feast from a crystal dish.

Now, survey completion rates are measured with two metrics: response rate and completion rate. Combining those metrics determines what percentage, out of all 100 cats, finished the entire survey. If all 100 give their full report on how delicious fish is, you’d achieve 100% survey completion and know that your information is as accurate as possible.

But the truth is, nobody achieves 100% survey completion, not even golden retrievers.

With this in mind, here’s how it plays out:

  • Let’s say 10 cats never show up for the survey because they were sleeping.
  • Of the 90 cats that started the survey, only 25 got through a few questions. Then, they wandered off to knock over drinks.
  • Thus, 90 cats gave some level of response, and 65 completed the survey (90 – 25 = 65).
  • Unfortunately, those 25 cats who only partially completed the survey had important opinions — they like salmon way more than any other fish.

The cat researchers achieved 72% survey completion (65 divided by 90), but their survey will not reflect the 25% of cats — a full quarter! — that vastly prefer salmon. (The other 65 cats had no statistically significant preference, by the way. They just wanted to eat whatever fish they saw.)

Now, the Kitty Committee reviews the research and decides, well, if they like any old fish they see, then offer the least expensive ones so they get the highest profit margin.

CatCorp, their competitors, ran the same survey; however, they offered all 100 participants their own glass of water to knock over — with a fish inside, even!

Only 10 of their 100 cats started, but did not finish the survey. And the same 10 lazy cats from the other survey didn’t show up to this one, either.

So, there were 90 respondents and 80 completed surveys. CatCorp achieved an 88% completion rate (80 divided by 90), which recorded that most cats don’t care, but some really want salmon. CatCorp made salmon available and enjoyed higher profits than the Kitty Committee.

So you see, the higher your survey completion rates, the more reliable your data is. From there, you can make solid, data-driven decisions that are more accurate and effective. That’s the goal.

We measure the completion rates to be able to say, “Here’s how sure we can feel that this information is accurate.”

And if there’s a Maine Coon tycoon looking to invest, will they be more likely to do business with a cat food company whose decision-making metrics are 72% accurate or 88%? I suppose it could depend on who’s serving salmon.

While math was not my strongest subject in school, I had the great opportunity to take several college-level research and statistics classes, and the software we used did the math for us. That’s why I used 100 cats — to keep the math easy so we could focus on the importance of building reliable data.

Now, we’re going to talk equations and use more realistic numbers. Here’s the formula:

Completion rate equals the # of completed surveys divided by the # of survey respondents.

So, we need to take the number of completed surveys and divide that by the number of people who responded to at least one of your survey questions. Even just one question answered qualifies them as a respondent (versus nonrespondent, i.e., the 10 lazy cats who never show up).

Now, you’re running an email survey for, let’s say, Patton Avenue Pet Company. We’ll guess that the email list has 5,000 unique addresses to contact. You send out your survey to all of them.

Your analytics data reports that 3,000 people responded to one or more of your survey questions. Then, 1,200 of those respondents actually completed the entire survey.

3,000/5000 = 0.6 = 60% — that’s your pool of survey respondents who answered at least one question. That sounds pretty good! But some of them didn’t finish the survey. You need to know the percentage of people who completed the entire survey. So here we go:

Completion rate equals the # of completed surveys divided by the # of survey respondents.

Completion rate = (1,200/3,000) = 0.40 = 40%

Voila, 40% of your respondents did the entire survey.

Response Rate vs. Completion Rate

Okay, so we know why the completion rate matters and how we find the right number. But did you also hear the term response rate? They are completely different figures based on separate equations, and I’ll show them side by side to highlight the differences.

  • Completion Rate = # of Completed Surveys divided by # of Respondents
  • Response Rate = # of Respondents divided by Total # of surveys sent out

Here are examples using the same numbers from above:

Completion Rate = (1200/3,000) = 0.40 = 40%

Response Rate = (3,000/5000) = 0.60 = 60%

So, they are different figures that describe different things:

  • Completion rate: The percentage of your respondents that completed the entire survey. As a result, it indicates how sure we are that the information we have is accurate.
  • Response rate: The percentage of people who responded in any way to our survey questions.

The follow-up question is: How can we make this number as high as possible in order to be closer to a truer and more complete data set from the population we surveyed?

There’s more to learn about response rates and how to bump them up as high as you can, but we’re going to keep trucking with completion rates!

What’s a good survey completion rate?

That is a heavily loaded question. People in our industry have to say, “It depends,” far more than anybody wants to hear it, but it depends. Sorry about that.

There are lots of factors at play, such as what kind of survey you’re doing, what industry you’re doing it in, if it’s an internal or external survey, the population or sample size, the confidence level you’d like to hit, the margin of error you’re willing to accept, etc.

But you can’t really get a high completion rate unless you increase response rates first.

So instead of focusing on what’s a good completion rate, I think it’s more important to understand what makes a good response rate. Aim high enough, and survey completions should follow.

I checked in with the Qualtrics community and found this discussion about survey response rates:

“Just wondering what are the average response rates we see for online B2B CX surveys? […]

Current response rates: 6%–8%… We are looking at boosting the response rates but would first like to understand what is the average.”

The best answer came from a government service provider that works with businesses. The poster notes that their service is free to use, so they get very high response rates.

“I would say around 30–40% response rates to transactional surveys,” they write. “Our annual pulse survey usually sits closer to 12%. I think the type of survey and how long it has been since you rendered services is a huge factor.”

Since this conversation, “Delighted” (the Qualtrics blog) reported some fresher data:

survey completion rate vs number of questions new data, qualtrics data

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The takeaway here is that response rates vary widely depending on the channel you use to reach respondents. On the upper end, the Qualtrics blog reports that customers had 85% response rates for employee email NPS surveys and 33% for email NPS surveys.

A good response rate, the blog writes, “ranges between 5% and 30%. An excellent response rate is 50% or higher.”

This echoes reports from Customer Thermometer, which marks a response rate of 50% or higher as excellent. Response rates between 5%-30% are much more typical, the report notes. High response rates are driven by a strong motivation to complete the survey or a personal relationship between the brand and the customer.

If your business does little person-to-person contact, you’re out of luck. Customer Thermometer says you should expect responses on the lower end of the scale. The same goes for surveys distributed from unknown senders, which typically yield the lowest level of responses.

According to SurveyMonkey, surveys where the sender has no prior relationship have response rates of 20% to 30% on the high end.

Whatever numbers you do get, keep making those efforts to bring response rates up. That way, you have a better chance of increasing your survey completion rate. How, you ask?

Tips to Increase Survey Completion

If you want to boost survey completions among your customers, try the following tips.

1. Keep your survey brief.

We shouldn’t cram lots of questions into one survey, even if it’s tempting. Sure, it’d be nice to have more data points, but random people will probably not hunker down for 100 questions when we catch them during their half-hour lunch break.

Keep it short. Pare it down in any way you can.

Survey completion rate versus number of questions is a correlative relationship — the more questions you ask, the fewer people will answer them all. If you have the budget to pay the respondents, it’s a different story — to a degree.

“If you’re paying for survey responses, you’re more likely to get completions of a decently-sized survey. You’ll just want to avoid survey lengths that might tire, confuse, or frustrate the user. You’ll want to aim for quality over quantity,” says Pamela Bump, Head of Content Growth at HubSpot.

2. Give your customers an incentive.

For instance, if they’re cats, you could give them a glass of water with a fish inside.

Offer incentives that make sense for your target audience. If they feel like they are being rewarded for giving their time, they will have more motivation to complete the survey.

This can even accomplish two things at once — if you offer promo codes, discounts on products, or free shipping, it encourages them to shop with you again.

3. Keep it smooth and easy.

Keep your survey easy to read. Simplifying your questions has at least two benefits: People will understand the question better and give you the information you need, and people won’t get confused or frustrated and just leave the survey.

4. Know your customers and how to meet them where they are.

Here’s an anecdote about understanding your customers and learning how best to meet them where they are.

Early on in her role, Pamela Bump, HubSpot’s Head of Content Growth, conducted a survey of HubSpot Blog readers to learn more about their expertise levels, interests, challenges, and opportunities. Once published, she shared the survey with the blog’s email subscribers and a top reader list she had developed, aiming to receive 150+ responses.

“When the 20-question survey was getting a low response rate, I realized that blog readers were on the blog to read — not to give feedback. I removed questions that wouldn’t serve actionable insights. When I reshared a shorter, 10-question survey, it passed 200 responses in one week,” Bump shares.

Tip 5. Gamify your survey.

Make it fun! Brands have started turning surveys into eye candy with entertaining interfaces so they’re enjoyable to interact with.

Your respondents could unlock micro incentives as they answer more questions. You can word your questions in a fun and exciting way so it feels more like a BuzzFeed quiz. Someone saw the opportunity to make surveys into entertainment, and your imagination — well, and your budget — is the limit!

Your Turn to Boost Survey Completion Rates

Now, it’s time to start surveying. Remember to keep your user at the heart of the experience. Value your respondents’ time, and they’re more likely to give you compelling information. Creating short, fun-to-take surveys can also boost your completion rates.

Editor’s note: This post was originally published in December 2010 and has been updated for comprehensiveness.

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Take back your ROI by owning your data

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Treasure Data 800x450

Treasure Data 800x450

Other brands can copy your style, tone and strategy — but they can’t copy your data.

Your data is your competitive advantage in an environment where enterprises are working to grab market share by designing can’t-miss, always-on customer experiences. Your marketing tech stack enables those experiences. 

Join ActionIQ and Snowplow to learn the value of composing your stack – decoupling the data collection and activation layers to drive more intelligent targeting.

Register and attend “Maximizing Marketing ROI With a Composable Stack: Separating Reality from Fallacy,” presented by Snowplow and ActionIQ.


Click here to view more MarTech webinars.


About the author

Cynthia RamsaranCynthia Ramsaran

Cynthia Ramsaran is director of custom content at Third Door Media, publishers of Search Engine Land and MarTech. A multi-channel storyteller with over two decades of editorial/content marketing experience, Cynthia’s expertise spans the marketing, technology, finance, manufacturing and gaming industries. She was a writer/producer for CNBC.com and produced thought leadership for KPMG. Cynthia hails from Queens, NY and earned her Bachelor’s and MBA from St. John’s University.

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