Targeting Tips in Digital Marketing
- Tuesday, October 15, 2019
In digital marketing one can target very narrow set of customers. How Segmentation Targeting and Positioning can be applied to Digital Marketing. Philip Kotler define segmentation as, a market segment consists of a group of customers who share a similar set of Need & Wants.
There is a saying in traditional marketing “half of advertising is waste, but we don’t know which half”. But thankfully in digital there is no wastage because you can preciously reach only those who you want to target.
What is Segmentation?
It is dividing heterogeneous population in smaller homogeneous groups which are similar in characteristic. The targeted segment basically should respond better to marketing activity compared to general population as the marketing mix will be more customize to the chosen segment.
Although there’re multiple variables for segmenting customers, but we can broadly classify them in Geographic, Demographic, Psychographic and behavioral. Identifying each of these segments in a digital market place is very different from conventional marketing. For example, the location of the customer can be accurately collected by the IP Address or GPS location of the handheld device used by the customer.
Demographic details of the customer are provided by the customer himself when he signs-up for getting weekly updates or offers from the company. Social media platform can be a source of finding customers in different Psychographic clusters. For an online market purchase history or latest search keywords typed by the customer can be used to identify the behavioral segment.
If we look at each of these four clusters in more detail, we have geographic where in we can do radius targeting. If you are a hyper local business, you can target people who are in the vicinity of say one mile or two-mile radius. You can even target people based of pin code. This can help in increase in footfalls to your store.
Another important variable for segmentation is Demographic. Here you can have variables like age, gender, job title etc. Job Title is in fact one of the most sort after segmentation variable. So weather you are at mid-management position or senior level or founder or owner of the company.
Psychographic is largely based on interest profiling, based on user conduct and behavior on the web. So what kind of groups the user follows or join, kind of pages user likes, what type of video the users watches. What sort of content the user engages with. A Psychographic profile is developed.
Behavioral segmentation are based on what actions users are performing online, what queries they are searching in search engines, which websites they are browsing, so cookies are dropped when they visit a website. These cookies keep a trail of their online behavior.
If you are able to integrate your CRM targeting data with the cookie data you can do a lot of cross-sell or up-sell. You already have their email/phone and these users are online you can target them with cross sell and up sell.
Developing a Look-a-like Modeling
Basically, it’s targeting people who have similar characteristic of the people who have already shown interest to your business. This will help to expand your target market. Your CRM targeting shows purchase behavior of your best customers, so either they purchased from you or interacted with your website. Look-a-like modeling is more accurate in predicting people who are more likely to purchase because you are modelling them based on your best customers. You can customize the messaging and positioning you want to portray.