Understanding human behaviour and what drives consumers to engage with a brand is a goal all marketers share. However, according to a 2016 survey conducted by Econsultancy, while 76% of marketers were implementing basic segmentation, only 15% of marketers were using behavioural targeting. (This data is based on web activity.) This suggests that the majority of marketers have a ways to go before they are optimally targeting their customers.
Defining Behavioural Targeting
While the majority of marketers limit their segmentation to customer demographic data such as gender, age, and geography, leading marketers are taking it a step further and demand a more comprehensive, psychographic profile of their customers.
Behavioural targeting advances a marketer’s scope by providing data segmentation based on customer behaviours, giving marketers the ability to organize customers based on variables and preferences related to their previous online activities.
Marketers can leverage this data and establish specific steps of action for different customers. Essentially, data enables marketers to build digital profiles to reach customers more effectively.
Segmentation – Target Audience Profiles
Segmenting that goes beyond basic demographic segmentation–by identifying prevailing psychographic, geographic, demographic, and transactional characteristics within a customer base–enables marketers to identify and target high-value customers. Armed with this information, marketers can focus their messaging on those customers who are most likely to convert and provide the greatest profitability. Conducted longitudinally, behaviour-based segmentation enables marketers to become more efficient with their marketing spend, ultimately increasing their campaign ROI.
Developing Behaviour-based Insights
Studying consumer behaviour helps marketers understand why consumers purchase, share, and interact with their brand. Capturing data using a CRM or email analytics platform, marketers are able to better understand what consumers buy and why they buy it. With this information, we can identify specific trends, learn how to improve future campaign performance, and increase customer engagement.
Predictive modeling–one of the most important parts of marketing automation–drives better targeting and personalization. With predictive analytics, marketers can leverage previous campaign data to anticipate future customer behaviour, thus enabling marketers to develop messaging that resonates with specific customer segments–and with a reasonable degree of certainty, predict the performance of the campaign.
Behavioural targeting arms you with the data and insights to present the correct content at the correct time. This should translate into a greater number of click-throughs, and, as a result, a higher percentage of conversions. Behavioral targeting delivers the tools you need to better understand the intent of your prospects, so you can take appropriate action and turn them into customers.