The indicators that your ideal customer is actually ready to buy
In part one of this series, we discussed ways to identify your ideal customer. That’s the first, basic step in targeted marketing.
This is insufficient to refine a campaign, however not by a long shot. True, highly-targeted marketing is all about reaching out to individuals who are actually ready to buy. And there are two subsequent steps in the process to achieve this: using predictive analytics and then real-time indicators that point to an imminent purchase.
Predictive analytics are last-gen targeted marketing but still useful
The last generation of targeted marketing relied heavily (almost solely) on predictive analytics which looks at data to spot behaviors, milestones, and demographics that are correlated with a purchase decision.
For example, as we described in a previous post:
The data will let you know that Craig Smith is about to finish paying off his car loan. A predictive analysis suggests that he might be interested in buying a new car. However, Craig may be just as likely to keep it in order to avoid making car payments. What if there are 10 million Craig Smiths out there? Not many of those individuals will shop for a new car. In fact, statistics might indicate that only about 10% of them will do so.
Predictive analytics takes the data describing your ideal customer which may be, say, 50 million people for a national business and refines it down to those who may be looking to buy based on historical data; in the above case, the 10 million individuals who just paid off their car loan.
Predictive analytics can use a variety of factors for different decisions. As another example, an individual who just moved and forwarded their mail may be in the market for new furniture for a new home. Individuals who bought a tablet computer five years ago could be ready for an upgrade. Consumers who completed the minimum contract for cell phone service might be interested in another provider with a lower rate. Perhaps someone recently had a baby. They would need diapers, clothing, baby supplies, and even furniture, such as cribs or changing tables.
These predictors are very useful and represented a massive step forward for targeted marketing. But they are still inefficient when used in isolation.
Predictive analytics narrowed down the above example list of 50 million to 10 million potential car shoppers but how many of the latter group will actually buy?
If that number is really only one million, nine out of ten marketing dollars are wasted if you reach out to the whole group. This is why predictive analytics must be combined with real-time data that features actual indicators someone is shopping for a new car.
This is where targeted marketing gets real.
What signals that a customer is actively looking to purchase something?
Indicator #1: Online activity
One of the easiest ways to know whether someone is in the market for a product is through their online activity. Whether the person has visited cars.com, realtor.com, or a site that offers free diaper delivery, these indicators can be tracked and collected as real-time data.
Indicator #2: Visited a physical location
Technology can tell us when a customer has visited a physical location, such as a car dealership or a retail clothing store. It’s done via geofencing, a location-based service that uses GPS, Wi-Fi, and cellular data to track where people go within a certain radius. You can even collect data based on point-of-service (POS) systems to find out what customers bought if anything.
The complete targeted marketing process with BDEX
You’ll start the targeting process by defining your customers, and BDEX can help you refine this definition with data. From there, we fuse predictive analytics with the real-time indicators of people who are looking to buy right now. Based on these parameters, we provide you with an actionable list of your best customers as they are actively shopping for your product or service.
In the above example that could represent a nationwide auto dealer, the process moved a list from 50 million to 10 million and finally down to the one million individuals who are really looking to buy a car.
But that’s just a generic example. The data is often specific enough in terms of industry, product or service, and behaviors to narrow down weekly lists to merely a few dozen individuals, in some cases. This means you get a recurring, narrow, and highly-actionable list of potential customers.
When this list is fused with our Data Exchange Platform (DXP) and Device Graph, it includes contact information as well as the different devices that prospects use in their daily lives.
This gives you the power to reach out to individuals who are specifically looking for your products and services, as well as the means to reach out to them where they are likely to see your message.
Marketing doesn’t get any more targeted than that.
BDEX features the first-ever Data Exchange Platform (DXP). The BDEX DXP and DAAS platforms enable companies to acquire impartial, quality-scored, third-party data reaching the right people at the right time like never before. We offer cross-device matching, auto dealership services, DAAS, real-time targeting, and custom segment building that is ideal for any industry, including auto dealers, retailers, brands, agencies, out-of-home, and franchises.