Not so long ago, marketing was mostly a numbers’ game. Companies would spend their budget on (expensive) mass-media campaigns in an effort to reach as many people as possible. Conversion rates were low so investing big was the best way to get a meaningful return on customers’ interest.
Since then, the audience got used to switching the tv channel during the commercials, newspapers do not sell nearly as much as before, and e-mail providers have grown to become merciless at moving advertising messages directly to spam. Companies had to adapt to ensure they do not go unnoticed.
Targeting the right customer with the right message was always key to successfully build a brand. Further down we present the five main reasons why analytics capabilities help leveraging the power of data and improve your business brand efficiency:
Targeted marketing requires a deep understanding of who should be your target audience. What products and services do your business provide and who can benefit from them the most? Focusing on a subset of the market can help marketing managers better prioritize what the brand message should be.
Collecting business data and defining comprehensive engagement indicators should make it clearer what that subset relates to your brand the most.
Relying on indicators supported by your business data not only provides strong fundamentals to every business decision when compared with anecdotal experience, but it may also bring your attention to unexpected insights!
The rise of technology and consequential increase of screen time has allowed more companies to take advantage of the growing number of different communication mediums to expand their reach to a broader audience. In contrast, the attention span of the typical member of an audience has never been so short in this age of over-stimulation.
With analytical tools and skills becoming almost a commodity in today’s market, any company can now get to know its clients in much more detail than ever.
Personalization has become the rule and addressing the right client with the right message will go a long way in establishing an emotional relationship between every member of the audience and your brand.
This will make them aware and interested in the benefits your products and services your business can provide.
Back when mass-marketing was a thing, companies used to need a big budget to have their campaign running on TV or in the newspaper. Not only was it expensive but also highly inefficient as they would be targeting the audience indiscriminately. Therefore, conversion-rates were awfully low.
Targeting the right audience has since become much cheaper and a promise of much better results. Many platforms, with tech giants such as Google and Facebook among them, attract a lot of eyeballs and they really know a lot about their users, providing their customers with rich data.
Their reach and the level of detail at which they allow companies to define the ideal audience profile is a guarantee of better conversion rates at a fraction of the cost.
We have seen so far that targeted marketing leads to greater brand communication efficiency through reaching a smaller but potentially more enthusiastic audience. However, there is one more important benefit that derives from it.
Dropping the generalist approach to communication behind mass-marketing which tries to please as many people as possible should create room for the company to take a warmer and more personal approach, by sharing its brand values and trigger an emotional response from its customers.
Not losing a client is most of the time as important as converting a new one! So, by proactively monitoring and acting at the first sign of potential churn will keep the customers emotionally engaged with your brand by feeling valued by your company.
This should result in deeper customer loyalty and the effects will still be verified long after the campaign has ended.
Probably the most important factor, targeted marketing allows better data collection from more engaged customers and typically less noise when a campaign tries to please multiple segments of the market at once.
Companies with deep analytics experience like LTPlabs can help every kind of business to leverage its customer behavioural databases and both design and develop a systematic approach to evaluate what works best in order to achieve higher conversion rates.
Being able to collect data and measure different KPIs is key to constantly evaluate the efficiency of your brand communication. It also shifts the business decision making processes to become more proactive instead of reactive by trying and measuring the results of multiple approaches.
This leads to a feedback loop that ensures an ever-evolving communication strategy that is always in line with what its audience most values.