Customers have never had it so good in the sense that they are now being presented with so many choices when it comes to brands and companies that offer unique products and services.
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 who knows them inside-out, and who tailors marketing campaigns and products specifically to them. This would encourage customer loyalty, and it would mean that customers don’t have to waste time trying to find the right brand each time they go shopping. Instead, they can return to familiar old faces.
In a nutshell, this is where precision marketing comes in.
For businesses, it’s a weapon that will help them hit the spot with existing customers so that they turn into loyal, long-term customers. This article will demonstrate exactly what precision marketing is and how you can use it to increase revenue.
What is Precision Marketing?
Picture it: You’ve just made a purchase from an online store, and you’re pretty happy. Two days later, the store sends you an email to offer you a discount on the item you’ve just purchased. Matter of fact, it arrived at your door that morning!
This kind of thing is a major turn-off to customers in today. 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.
Your marketing, content, and offers all need to be relevant.
What do we mean by that?
The point of precision marketing is to target existing customers with the aim of promoting brand loyalty. Instead of using ads, marketers will 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 that we’re not wasting peoples 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 will be able to fine-tune the direction of their arrows so that 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 than ever so that you build 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.
How to Use Precision Marketing to Boost Your 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 promotion? Do you want to drive people to specific landing pages for your unique products or services? 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.
Then, you want to synchronize your campaigns so that 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 who are more likely to engage in your promotions.
You might then 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 need to measure the results. Then, you need to refine and repeat this test to see whether similar or totally different results are produced. This will help you to understand why your results are as they are and how your company can use them to increase its revenue.
Another technique you can use is to analyze customer data from a reward program to find out how the most active customers react to promotions. This insight will help you to identify a segment of unresponsive rewards program members who have a high likelihood of engaging with your business again.
Then, you can reach out to these customers with promotions on their rewards statements that only your active customers usually receive. There’s every chance that this technique can boost your revenue by bringing dormant customers back into the game.
Data is at the heart of precision marketing, but it’s also important that we 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’ll need to learn more about if you’re to use precision marketing:
Segmentation analytics – Segmenting data according to your companies marketing goals
Profiling – Use high-value customer descriptions that help us find “lookalike” prospects so that we can target them with specific messages
Predictive analytics – Capture behavioral data in various ways so that we can make a more accurate forecast about future prospect behavior
As well as data, you need to work on your branding as it also increases customer retention. While data is what helps you to 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 what logos and colors your audience responds to best. Whatever you do, make sure that 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 spot with the right people. Using data and analytics, you can fine-tune your campaigns so that conversions and revenue increase.