By Ashley Kimler
Your customers have never had it so good, in the sense there’s never been so much choice. On the flip side, too much choice can be a bad thing if a customer feels overwhelmed and can’t decide which brand to shop with.
What all customers would prefer is a brand that knows them inside out, and tailors marketing campaigns and products specifically to them. This would encourage customer loyalty and mean customers don’t have to waste time trying to find the right brand each time they go shopping. Instead, they can return to old familiar faces.
In a nutshell, this is where precision marketing comes in. For businesses, it’s a weapon for hitting the spot with existing customers so they turn into loyal, long-term customers.
What is precision marketing?
Picture it: You’ve just made a purchase from an online store and you’re happy. Two days later, the same store sends you an email offering a discount on the item you have just purchased. Matter of fact, the item arrived at your door that morning!
This kind of thing is a major turn-off to customers. It tells them that the business just doesn’t get them. It’s the same with content. If you bombard existing customers with content that doesn’t match their needs, you’re missing the mark and turning people away.
The point of precision marketing is to target existing customers with the aim of promoting brand loyalty. Instead of using ads, marketers create tailored offers, deals, and even gimmicks, that hit the spot.
Market segmentation is at the heart of precision marketing. This is when you take your market and divide it into smaller chunks of customers who each have their own unique needs. Sometimes a segment will be broad (men) and sometimes it will be super specific (unmarried men under 40), for example.
Look at it like this: While social media provides us with a place to direct our marketing campaigns, precision marketing helps us target the right people at the right time with the right message. This, in turn, boosts conversions and customer loyalty by ensuring we’re not wasting people’s time with messages they don’t want.
Just ask yourself how many times you personally have been bombarded with unwanted ads on Facebook that have eventually caused you to block the page. With precision marketing, brands are able to fine-tune the direction of their arrows so their messages target the right people. This means no more unwanted products, deals, and offers that are a major turn-off for customers.
It’s all about connecting with customers with greater relevancy so you are building your brand with individuals who actually want to buy from you. With precision marketing, you can use tools and data to adopt a content-rich, data-driven customer communications approach that produces results that are better than ever.
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How to use precision marketing to boost revenue
Like with any marketing campaign, you must begin with a goal. What is it you want to achieve with your precision marketing campaign? Do you want to achieve a better response rate to your promotions? Or perhaps you want to bring dormant customers back into the game?
Let’s take a look at two ways you can approach precision marketing.
For the first one, let’s say you’ve set your goal. Then, you need to leverage and evaluate the data from your current campaigns. This data should help you develop targeted segments. Start by creating a customer segment that has the planned level of engagement before identifying customers whose previous engagement and behaviors best match this group. You can then divide this new segment into a control group and a target group.
Next, you want to synchronize your campaigns so you are able to work out which message is best for the channel. For example, you might examine your active members before discovering, say, 50,000 users who enjoy a similar lifestyle to your most high-value customers and are likely to engage in your promotions.
You then might want to target 50% of this group with personalized messages via a weekly loyalty statement (or monthly). You can leverage the statement to inform your reward program members how much quicker they can build up their points during a promotional period.
Once you’ve run a campaign, you will need to measure the results. And then you will need to refine and repeat this test to see whether similar or totally different results are produced. This will help you to understand your results and how your company can use them to increase its revenue.
Another technique is to analyze customer data from your rewards program to find out how the most active customers react to promotions. These insights can help you identify program members who have been unresponsive but have a high likelihood of engaging with your business again. You can then reach out to these customers with promotions on their rewards statements that you usually only send to your active customers. There’s a chance this technique will bring dormant customers back into the game and boost your revenue.
It’s all about data and branding
Data is at the heart of precision marketing, but it’s also important to highlight how key branding is. Data is your new best friend in that you can use it to learn more about your audience. Here are some of the analytics processes you will need to learn:
- Segmentation analytics: Segmenting data according to your companies marketing goals
- Profiling: Using high-value customer descriptions to help you find “look-alike” prospects so you can target them with specific messages
- Predictive analytics: Capturing behavioral data in various ways so you can make more accurate forecasts about future prospect behavior
In addition to analyzing data, you will need to work on your branding to increase customer retention. While data is what helps you create highly targeted messages, it’s your branding that people will become familiar with. When we become familiar with a brand, we basically become attached to them.
If you haven’t yet refined key elements of your branding, such as your logo, your voice, and your colors, now is the time to do it. You can use data and run A/B tests to find out which logos and colors your audience responds to best. Whatever you do, make sure your brand aligns with your values, as well as the values of your customers.
All in all, precision marketing is all about refining your message so that it hits the right spot with the right people. Using data and analytics, you can fine-tune your campaigns so that conversions and revenue increase.
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