Finding Your True Audience Targeting the Right Customer at the Right Time with the Right Media
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An online users sees more than 1,800 ads per day, which is an increase of more than 250% since 2004.
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How often do you use the internet to research before you purchase?
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Which type of ads influence you more as a potential buyer?
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9 Need to Knows
Revenues are still relevant – Collect information about customers to establish how much cash money they bring to your table Happiness is contagious – Focus on happy customers Price sensitivity is NOT a good thing – Don’t make your market position about price – When Mickey Drexler took over a CEO of J Crew, he was looking for customers willing to pay more for well‐made clothing and increased revenue 170% in the first 5 years
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9 Need to Knows
The bigger the problems the better – The bigger the problem your brand can solve, the bigger the market response – In the early days of the internet, AOL went after people interested in getting online but not willing to do it alone – As a result, 30 million people signed up and they became 4th on the list of events that shaped the first 25 years of the web Be on the lookout for something new – Introducing new products and services can generate organic growth companies crave – Focus on your customers that are most interested in new innovations from your brand to generate bottom line growth
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9 Need to Knows
Out there advocating for your brand – The greater the level of influence a buyer has among their social networks and word of mouth marketing, the more a brand’s marketing ROI will benefit A hub with lots of spokes – The more active and engaged a customer is with different social media, the more valuable they can be to your brand – Ford Motor Co. picked out 100 twenty‐something YouTube storytellers who’d developed a fan community of their own and gave them a Fiesta for 6 months – Each month they share their experiences with their communities via YouTube, Facebook, twitter and Flickr – Ford received 50,000 requests for information and sold 10,000 units in the first 6 days of sales
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9 Need to Knows
Distinctive needs and wants – The more similar and predictable a target group’s needs and wants, the easier it is to develop compelling positioning and messaging Meaningful to traditional and digital decision makers – Get a sense of how high‐value customers use traditional, digital and social media communications throughout the pre‐ and post‐purchase process – Understand how the like to interact with a brand within different communications channels
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What Is Equity? Building Customer Equity
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What is Customer Equity?
A firm is only as good as its customers think it will be the next time they do business with them Customer Equity is made up of 3 parts – Value Equity – a customer’s objective evaluation of the brand’s offering – Brand Equity – a customer’s subjective view of the brand and its offerings – Retention Equity – a customer’s view of the strength of the relationship between them and the brand
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Value Equity
A customer’s objective assessment of the utility of a brand based on perceptions of what is given up for what is received What drives value equity for the customer? – Quality – What is the value of the brand offerings? – Price – How attractive is the price? – Convenience – How easy is it to do business with the brand?
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Brand Equity
The customer’s subjective and intangible assessment of the intangible, above and beyond its objectively perceived value – This is determined by the brand’s marketing strategy, tactics and influence over the customer through life experiences and associations with the brand What drives brand equity? – Building awareness and attractive customers – Building emotional connections with customers – Reminds customers to repurchase
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Retention Equity
The tendency of the customer to stick with a brand above and beyond the customer’s objective and subjective assessments of the brand – Focuses on the relationship between the customer and brand, based on actions taken by the brand and the customer to establish, build and maintain a relationship What drives retention equity? – Loyalty programs (frequent purchases/rewards programs) – Special recognition and treatment programs – Affinity (emotional connection programs) – Community programs – Knowledge‐building programs (workshops and seminars)
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Audience targeting can identify the best consumers for a specific ad or campaign and can be used to effectively reach sales, acquisition and branding goals.
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The Ingredients of Targeting What are people looking for
– Search Engine information Interests – Content of articles viewed Where They Go – Pages, Sections, Sites What They Say About Themselves – Income ranges, Gender, City Tools They Use – Calculators, Configurations, Comparisons Offline Data – Transactional, Affinity, Psychographics
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Audience Targeting Targeting: The process of identifying segments of similar users, and incorporating them into the ad delivery decision
Behavioral Targeting: The process of identifying patterns of user interactions, and incorporating them into the ad delivery decision Interaction
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Recency
Frequency
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What is Behavioral Targeting?
A method used by online advertisers to increase the effectiveness of a campaign Uses information collected about an individual’s web browsing behavior to select the advertisements to display to that individual Allows for the displaying of ads that are more relevant to the interests of the individual viewing a particular page Because of this, it is believed that this type of targeting helps advertisers deliver their messages to the individuals most likely to be influenced by them
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How Behavioral Targeting Works Tag
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Segmentation
Behavioral Targeting
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Why Does It Work?
Reach and identify qualified audiences based on their behaviors, interests and habits Target relevant ads to engaged consumers throughout their purchasing cycle Improve online advertising performance, reduce waste and increase ROI
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At emagine, we work with 2 internationally respected firms for audience segmentation.
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VisualDNA
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The VisualDNA Customer Profile
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AudienceScience
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The AudienceScience Customer Profile
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Understanding Market Segmentation Learning How to Break Down Your Customer’s Into Groups
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Market segmentation is the process that companies use to divide large markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs
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Market Segmentation
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Market Segmentation Divides the market into different geographical units such as nations, regions, states, counties, or cities
Divides buyers into different groups based on social class, lifestyle, or personality traits
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Geographic segmentation
Psychographic segmentation
Demographic segmentation
Behavioral segmentation
Divides the market into groups based on variables such as age, gender, family size, income, occupation and education
Divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product
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How Do We Market To These Segments?
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Marketing Segmentation All
New vs. Returning
4 Key Products
8 Major Markets
16 Visitor Personas
100% of visitors
100% of visitors
1 segment = all
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16 segments = all
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Market Targeting Mass
Segmented
Niche
Local/Individual
Undifferentiated Marketing
Differentiated Marketing
Concentrated Marketing
MicroMarketing
Targets the whole market with one offer Mass marketing Focuses on common needs rather than what’s different
Targets several different market segments and designs separate offers for each to achieve higher sales and stronger position
Targets a small share of a large market Limited company resources Knowledge of the market
Practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations
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Mapping our Data to Sellable Segments
View content
Interest
View product information
Life‐stage
View ad
Lifestyle
Click on ad
Intent
Purchase something
Behavior
Search for something
Demography
Attend an event Provide information about themselves
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Mapping our Data to Sellable Segments
Interest Life‐stage
Active Travelers
Lifestyle Intent
Affluents
Behavior Demography
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Understanding How Targeting Works General Testing
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Segment Testing
Targeting
Profile Targeting
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Results from Mass Marketing Price
Direct Sales
Fill by ad networks
Volume http://emagine‐group.com
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Results from Market Segmentation Price
Direct Sales
Audience‐based selling
New Revenue
Fill by ad networks Volume http://emagine‐group.com
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Results from Audience Targeting Price
Direct Sales
Audience‐based selling
New Revenue Fill by ad networks
Volume
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Know Your Customer Types
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The Resistant Customer Mindset: Hates your company and
holds deep resentment for your brand Behavior: – Will spread negative word of mouth wherever possible – Took their experience with your brand personally and is looking for revenge – Will defect to your competitor first chance they get Loyalty: Zero Possibility of Defection: Extremely High (you can’t save this group)
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The Indifferent Customer Mindset: Sees your company/product/
service as nothing more than a commodity Behavior – Will always try to get lower prices to the point of near zero margin – They will promise volume or future business, but see little unique value in your offering – Always willing to walk away from the sale because they have other options available Loyalty: One Possibility for Defection: Very High
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The Acceptant Customer Mindset: Expects your customer to
provide the maximum of what’s asked and nothing more Behavior: – Doesn’t think of your brand until absolutely necessary – Comes to you because you have become a habit or more convenient choice – Maybe aware of other, better options, but simply hasn’t made the effort to pursue them Loyalty: Two Possibility for Defection: High – Customer expectations can outpace what you provide
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The Preferential Customer Mindset: Has grown to like your brand
and tends to understand the unique value that you provide Behavior: – Most of us make the mistake of making this customer type the top of our customer pyramid – When given a choice, they will probably continue to use your brand – Very aware of industry trends and can surprise by defecting if you have not given them benefits or raised the bar on service or innovation Loyalty: Three Possibility for Defection: Somewhat High http://emagine‐group.com
Experience Focused, Socially Active, Digitally Enabled
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The Evangelist Mindset: The pinnacle of the customer
relationship and would buy anything you offer Behavior: – They tell everyone they know about your company – Mentions how satisfied they are even in casual conversations – Your brand has become part of their life – Finds personal meaning with your brand – Worth their weight in gold because they do more to grow your business than any ad campaign Loyalty: Four Possibility for Defection: None
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Calculating Customer Lifetime Value What is a customer worth?
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Customer Lifetime Value?
Customer Lifetime Value (CLV) is how we determine what a customer/client is worth over the lifetime of their relationship with the brand This is difficult to calculate for consumer goods, but very easy for service based and financial services brands What we are looking to understand is which customers are worth keeping as clients and which should be let go to increase profitability This may seem like a dirty way to determine how much work you do to maintain client relationships but it is a requirement
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New Customer Valuation
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