How to Implement More Effective Micro-Targeting Programs Leveraging All Your Data to Improve Marketing Precision and Performance.

Transcription

1 How to Implement More Effective Micro-Targeting Programs Leveraging All Your Data to Improve Marketing Precision and Performance e-book

2 INTRODUCTION In a world where customers are increasingly empowered to select how, when and where to view the content of their choosing, it s no longer acceptable, desirable or efficient to deluge them with off-target, irrelevant experiences. Customers expect and deserve more. To build loyalty, you need to fulfill their demand for tailored, meaningful and timely communications the kind that makes their lives more convenient, efficient and manageable. Micro-targeting is the way to do it. When you re able to effectively micro-target, the benefits extend beyond building customer loyalty. You re also: Improving your marketing relevance through better timing of your communications as you trigger marketing actions when opportunities or risks occur, based on specific customer behaviors that are predictive indicators of possible outcomes, such as new purchase needs, upgrade opportunities or attrition tendencies. Increasing your marketing precision as you promote the right products and services to customers based on an improved ability to understand their needs and preferences. Ultimately, micro-targeting means a more effective marketing spend as you continuously focus your efforts on assessing micro-campaign effectiveness, and refine your micro-segments and actions accordingly. In short, effective micro-targeting delivers greater precision and relevance and, at the same time, improves return on marketing investment (ROMI). In this ebook, we ll concentrate on the power of micro-targeting and how to leverage your customer data to deliver the most precise customer interactions. EFFECTIVE MICRO- TARGETING DELIVERS GREATER PRECISION AND RELEVANCE AND, AT THE SAME TIME, IMPROVES RETURN ON MARKETING INVESTMENT (ROMI). 2 NGDATA.com

3 WHAT IS MICRO-TARGETING? To understand micro-targeting, it helps to view it within the landscape of marketing approaches now in practice: Mass Marketing: Broad and largely unfocused, schedule-based mass marketing targets a large potential population, regardless of their interests or intent, with the aim of driving widespread brand awareness. Segment-Based Marketing: Taking a more targeted view of the audience, segment-based marketing focuses on a few segments of an audience with similar backgrounds. Companies position and deliver messages in a tailored way to broadly-identified targeted segments, based on lifestyle and life stage, using socio-demographic information including age, income, sex and geography. Typically, segment-based marketing is used to develop a product portfolio for a limited number of targeted needbased segments. Segment-based marketing is also used to diversify commercial mass-media messages for a particular product depending on the perceived product benefits, and the mass media usage of the customer. Micro-Targeting: This approach focuses on a smaller group of highly-targeted customers that have similar socio-demographic information, as well as similar faster-changing details, such as product ownership, product acquisitions and renewals, and usage patterns signaling new needs. Micro-targeting is not about targeting people, but about figuring out the best ways to target small groups of people. With micro-targeting, marketers deliver offers and interactions that are adding to the long-term customer experience. Individual-Level Marketing: Often referred to as one-to-one marketing or segment-of-one marketing, this is the holy grail that, when implemented correctly, enables companies to provide the individualized relationship-building customers are seeking. It enables organizations to treat the customer in ways that are relevant to their actions, behaviors and traits. In order to engage at this level, marketers need to be able to analyze all data available on the individual customer to ensure the most targeted, accurate and timely marketing interactions. Marketing at the individual-level takes into account behavioral, contextual, rapidly-changing usage, service interaction, social and consumption information. While technologies are leading us closer to fulfilling the promise of individual-level marketing, it s never too soon to prepare your organization to take the first steps making the organizational shift necessary and developing experience with micro-targeting driving toward individual-level marketing. You can begin building toward that future today by developing individual customer profiles, and taking advantage of the productivity and relationship-building benefits of micro-targeting. As you start to understand your customers better over time, you can move from segment-based marketing to micro-targeting, and eventually to individual-level marketing. 3 NGDATA.com

4 CUSTOMERS WANT TO BE TARGETED BASED ON THEIR INDIVIDUAL WANTS AND NEEDS Whether it s their media consumption preferences or online behaviors, people are seeking greater control and personalization of experiences across all facets of life. Entirely new technologies, channels and business models have emerged to satisfy this growing demand from Google Now to Uber. One of the factors driving this desire for increased control and personalization is the oversaturation of communications. In a world where smartphones are keeping people continuously connected, customers are being steadily bombarded with marketing messages in s, banner ads, pop-ups, texts and more. Too often, these messages are off-target or ill-timed. Compounding the problem is a lack of time. A classic Gallup poll revealed that, 48% of Americans did not have the time to do what they wanted to in their lives, and 33% frequently experience stress from this time shortage issue. These trends pose both a challenge and an opportunity for marketers. By targeting more precisely, marketers can satisfy customers growing demand for greater personalization while also delivering value by saving them time, cost and effort. And, better targeting affects the business, too! Effective micro-targeting delivers tangible, lasting value to you and your business. By making your marketing campaigns more precise, you can expect: An immediate and ongoing increase in your ROMI An optimized spend on high-value customers An improved ability to respond to inbound customer interactions by providing more relevant and engaging offers An increased ability to meet or exceed customer expectations 48% OF AMERICANS DID NOT HAVE THE TIME TO DO WHAT THEY WANTED TO IN THEIR LIVES, AND 33% FREQUENTLY EXPERIENCE STRESS FROM THIS TIME SHORTAGE ISSUE. Gallup poll 4 NGDATA.com

5 THE THREE RULES OF MICRO-TARGETING SUCCESS Micro-targeting makes sense for your business, but what constitutes effective micro-targeting? The answer can be found in the following three rules of micro-targeting success: 1 2 More precise knowledge delivers greater value. There is a direct link between understanding customers better and business performance. According to Gartner, By 2018, Gartner predicts that organizations that excel in personalization will outsell companies that don t by 20%. As you increase your knowledge of the individual customer and gain the ability to personalize marketing to your target audience, you can expect the value it delivers to increase accordingly. Relevant marketing is successful marketing. What makes marketing more relevant? It s all a matter of enabling customers to receive what they want, when and how they want it. A relevant offer provides something meaningful to the customer at a time it can be used and in a form that s convenient enabling the customer to save time, save money and/or gain information vital to purchase decision-making. That requires you to gather and analyze more data about individual customer preferences, behaviors and context. How valuable are relevant marketing offers to customers? So valuable that they are willing to sacrifice some data privacy. In a survey by Accenture, 49% of consumers said they would not object to having their buying behavior tracked if it would result in relevant offers from brands and suppliers. 3 Time is of the essence. The importance of time to marketing success can t be overstated. First, there s the timeliness of offers; if you can time an offer to reach a customer at the moment they are most likely to accept it, your prospects of success are considerably greater. That requires knowing more about each customer s behavior, location and preferences. Second, there is tremendous value in being able to track customer behavior over time. Whereas a single customer data snapshot reveals only that customer s attitude at that specific moment, tracking customer behavior over time reveals trending information. This is essential to enabling marketers to identify changing customer needs and preferences for example, noting behaviors that suggest an increase or decrease in customer satisfaction and spending habits and to act promptly and appropriately to address the opportunity or issue. 5 NGDATA.com

6 TAKE THE FIRST STEP: BECOME CUSTOMER-CENTRIC Micro-targeting is only possible when you can gain an understanding of your customers across a broad range of behaviors, preferences and context. To do that, you need to gain a full understanding of each customer based on all your interactions with them: product ownership, renewals, account balance, transactions, channel use (online vs. call center), purchases, payments, website interaction and social behavior. In all likelihood, you are already amassing much of this data in multiple internal silos. Within this trove of information are nuggets of insights to drive greater customer centricity. You can begin with a few data points and add more to enhance your customer understanding over time. Your efforts to gain an understanding of each customer will benefit immeasurably when you develop the ability to track behavioral detail of each customer, in real time, and when you can incorporate even more granular-level details on interactions and context. These capabilities will enable your business to become customer-centric. Customer centricity is a way of thinking and acting whereby individual customer needs and preferences effectively drive all business processes and functions. As a customer-centric organization, you will be able to turn these disparate data sources into customer profiles an up-to-the-moment representation of each customer s information behaviors, preferences, and context upon which you can build and implement more effective micro-campaigns. CUSTOMER CENTRICITY IS A WAY OF THINKING AND ACTING WHEREBY INDIVIDUAL CUSTOMER NEEDS AND PREFERENCES EFFECTIVELY DRIVE ALL BUSINESS PROCESSES AND FUNCTIONS. 6 NGDATA.com

7 MICRO-TARGETING WITH NGDATA S LILY ENTERPRISE NGDATA s customer experience management solution, Lily Enterprise, gives you the ability to create real-time, trending Customer DNA, or dynamic customer profiles, for each individual customer. With Lily, you can deliver more effective micro-campaigns and get on the right path towards one-to-one targeting. Lily enhances micro-targeting by: Delivering Customer DNA, which is made up of a configurable and scalable library of thousands of pre-defined and client-specific metrics that describe each and every customer in a highly detailed manner, all in real-time. Creating more Sets of customers at a highly granular level. Sets, or dynamic microsegments, allow you to run micro-targeting programs with relevant messaging and offers based on not only socio-demographic data, but usage, impressions, product profile and more. You can establish Triggers, Alerts and Rules so that an offer is presented when the customer is ready to act upon it, not just when dictated by campaign timing. Ensuring that you can determine which Set a customer belongs to at any given time. As customers needs change over time, they dynamically switch between Sets. As Lily constantly tracks who is a member of which Set, you are always up to date on who to market to with which micro-targeting program for the best results. Determining next-best-actions through Lily s Rule Engine. You can assign the appropriate campaign action for a particular Set according to Rules you establish. You can connect these insights to any marketing execution tool to fuel your customer interactions. Enabling continuous enhancement of Customer DNA. Real-time results from campaigns get fed back into Lily, providing a more accurate and nuanced picture of each customer over time. Identifying which actions are best for each individual due to its ability to build a better response model. Monitoring the performance of micro-campaigns, in real time, to enable faster campaign enhancements. lily Sets Alerts Metrics Models Rules Configuration Search for sets, customers... KRISTA JOHNSON Default View Demo* Krista Johnson Search a metric... Affinities 01/05/ /05/2016 Affluence 19/05/2016 Behavior Total Debit Purchase Fast Food Cravers Amount per 120days Communication History Total Credit 8.00 Purchase Amount Luxury Shoppers per 120d Communication Preferences Total Cash Night Life Competition Withdrawal Amount Enthusiasts per 120days Connections Number of Debit Context Purchases per Outdoor Enthusiasts 120days Customer Journey Number of Credit Last Loan Impressions Purchases per Simulation Down 120days Payment Amount Life Events Life Style Number of Cash Number of Loan Withdrawals per Simulations 180days Loyalty Mobility Monthly Income Share of Wallet Opportunity Age Number of Share of Wallet Size Number of Active Complaints per Outbound Communication Products days 3.00 Product Relationship Krista Johnson Risk and Fraud NAME: Johnson Segment STREET ADDRESS: 4701 Jim Rosa Lane Social FIRST NAME: Kriata Socio-Demo TELEPHONE NUMBER: NGDATA.com

8 MAKE MICRO-TARGETING WORK FOR YOU NGDATA s Lily Enterprise and its Customer DNA enables you to know the traits, behaviors and preferences of individual customers on an ongoing basis, allowing your company to run and profit from more effective campaigns to micro-targeted customer segments. As you get to know your customers better over time, you can even move from micro-targeting to individual-level marketing. You ll be continuously learning about your customers, and enhancing your ability to understand and meet their needs. It s all possible with the proven micro-targeting precision delivered by Lily. Visit for more information. Copyright 2016 NGDATA, Inc.