A successful marketing campaign places paramount importance on customer engagement. Relevant and authentic content can make marketing campaigns interesting and appealing for its target audience. It helps them connect to organizations and keeps them engaged. However, content based on a single-template with the same substance would not cater to all customers alike. It is thus necessary to tailor and amend the same at each stage of the customers’ journeys and buying cycles to maintain their interest, throughout. Advertising as an art, requires one to study the behavior of the target audience and fabricate content accordingly. Data-driven marketing provides the marketers with the most apt leverage to gain insights on targeted customer-behavioral trends.
The world is shifting towards data-driven advertising
Designing a campaign or an advertisement requires analysis of various facets of customer-data at different levels. The conventional demographic data helps marketers profile their customers on various parameters and obtain the first slice of the customer-segment that the advertisement can be created for. However, demographics cannot help one create personalized content for each strata of the customer-base. To do so, one needs to study the customers’ lifestyles and behavioral traits. Marketing, sales, and customer support teams often cooperate and work together to create an effective data-driven strategy for customer engagement.
Despite the skepticism around personal data being held by companies, the general population does not really mind behavioral targeting. A 2013 Digital Advertising Alliance survey report stated that only 4% of 1,000 adults are concerned about targeted advertising using insights generated on their behaviors . As a matter of fact, 70% of consumers would prefer having a few advertisements created to cater to their interests. 40% others revealed that they’d like all advertisements to be personally targeted towards them.
An advertiser’s perennial challenge is to target customer segments effectively. This is best captured in the famous quote by John Wanamaker, “Half the money I spend on advertising is wasted. The trouble is, I do not know which half.” Using the appropriate data might be able to give substantial insight just into this. Traditional customer intelligence can be easily ameliorated due to the emergence of new channels of customer-data, innovative web-based services and advanced analytical algorithms. Studying the multiple dimensions of the new-generation customer intelligence can be used in various product and service-based marketing channels. These processes include Churn Management, CRM process optimization and behavioral profiling for targeted advertising.
Advanced customer intelligence capabilities are used in targeted advertising
Customers can be targeted on the basis on parameters like their personal interests, opinions, lifestyles and context, hence resulting in creation of smaller and more focused clusters which can be updated in real-time. Non-traditional channels like mobile and Internet-activity can extract massive pools of information on any individual, which can further be used to generate insights on his behavioral and personal preferences. Studying an individuals’ social-media activity and interactions can provide information on his social roles and relationships. This data can therefore, be used to target customers within certain communities. A specific customer can help increase the reach of an advertiser when the content matches the interest of similar communities.
In addition to this, user-interactions via multiple channels like emails, blogs, photo/video-sharing can provide deeper insights into customer-behavior critical for targeted advertising. Advanced analytical tools that can unveil the hidden information in these text, image and video data-streams. With the growth of the data analytics industry, advanced data integration techniques have been designed. Techniques like data-federation and data-propagation can integrate real-time data with historical data from multiple data-sources to provide a 360° view of the targeted customer.
Points to note before extracting data for targeted advertising
While creating a customer-profile is not difficult with all the advanced tools and techniques available in the market, utilizing the profile for maximum returns can be a challenge. One needs to define the requirement of the customer-profile before extracting the data. Identifying what nuggets of information are truly required can further make the process more efficient and fast. It is important to select and prioritize the aspects of the profile that are the most important. Using the correct data-points for a given purpose can maximize the ROI. However, pushing the inappropriate points forward can backfire and can even have a negative impact on ones’ customer-base.
It is also important to note that data-driven customer-targeting is not an isolated task. Data-driven marketing requires effort from different enterprises. It also includes data, expertise and innovative thinking from many parts of a particular enterprise. It is important to build an organization-wide muscle in data-driven marketing. While most leading organizations have already taken to targeted advertising, there are many others which haven’t. It thus, becomes extremely important to build a skill that can provide the best experience to a customer while increasing profits for an organization.