Finding Your True Audience

Finding Your True Audience  Targeting the Right Customer at the Right Time with the Right Media http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

An online users sees more than  1,800 ads per day, which is an  increase of more than 250%  since 2004. http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

How often do you use the internet to research before you purchase? http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Which type of ads influence you more as a potential buyer? http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

9 Need to Knows  Revenues are still relevant  – Collect information about customers to establish how  much cash money they bring to your table  Happiness is contagious  – Focus on happy customers  Price sensitivity is NOT a good thing  – Don’t make your market position about price  – When Mickey Drexler took over a CEO of J Crew, he was  looking for customers willing to pay more for well‐made  clothing and increased revenue 170% in the first 5 years http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

9 Need to Knows  The bigger the problems the better  – The bigger the problem your brand can solve, the bigger  the market response  – In the early days of the internet, AOL went after people  interested in getting online but not willing to do it alone  – As a result, 30 million people signed up and they became  4th on the list of events that shaped the first 25 years of  the web  Be on the lookout for something new  – Introducing new products and services can generate  organic growth companies crave  – Focus on your customers that are most interested in new  innovations from your brand to generate bottom line  growth http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

9 Need to Knows  Out there advocating for your brand  – The greater the level of influence a buyer has among their  social networks and word of mouth marketing, the more a  brand’s marketing ROI will benefit  A hub with lots of spokes  – The more active and engaged a customer is with different  social media, the more valuable they can be to your brand  – Ford Motor Co. picked out 100 twenty‐something YouTube  storytellers who’d developed a fan community of their  own and gave them a Fiesta for 6 months  – Each month they share their experiences with their  communities via YouTube, Facebook, twitter and Flickr  – Ford received 50,000 requests for information and sold  10,000 units in the first 6 days of sales http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

9 Need to Knows  Distinctive needs and wants  – The more similar and predictable a target group’s needs  and wants, the easier it is to develop compelling  positioning and messaging  Meaningful to traditional and digital decision makers  – Get a sense of how high‐value customers use traditional,  digital and social media communications throughout the  pre‐ and post‐purchase process  – Understand how the like to interact with a brand within  different communications channels http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

What Is Equity?  Building Customer Equity http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

What is Customer Equity?  A firm is only as good as its customers think it will be the next  time they do business with them  Customer Equity is made up of 3 parts  – Value Equity – a customer’s objective evaluation of the  brand’s offering   – Brand Equity – a customer’s subjective view of the brand  and its offerings  – Retention Equity – a customer’s view of the strength of  the relationship between them and the brand  http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Value Equity  A customer’s objective assessment of the utility of a brand  based on perceptions of what is given up for what is received  What drives value equity for the customer?  – Quality – What is the value of the brand offerings?   – Price – How attractive is the price?   – Convenience – How easy is it to do business with the  brand?  http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Brand Equity  The customer’s subjective and intangible assessment of the  intangible, above and beyond its objectively perceived value  – This is determined by the brand’s marketing strategy,  tactics and influence over the customer through life  experiences and associations with the brand  What drives brand equity?  – Building awareness and attractive customers  – Building emotional connections with customers  – Reminds customers to repurchase  http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Retention Equity  The tendency of the customer to stick with a brand above and  beyond the customer’s objective and subjective assessments  of the brand  – Focuses on the relationship between the customer and  brand, based on actions taken by the brand and the  customer to establish, build and maintain a relationship  What drives retention equity?  – Loyalty programs (frequent purchases/rewards programs)  – Special recognition and treatment programs  – Affinity (emotional connection programs)  – Community programs  – Knowledge‐building programs (workshops and seminars) http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Audience targeting can identify the best  consumers for a specific ad or campaign  and can be used to effectively reach  sales, acquisition and branding goals. http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

The Ingredients of Targeting  What are people looking for  – Search Engine information  Interests  – Content of articles viewed  Where They Go  – Pages, Sections, Sites  What They Say About Themselves  – Income ranges, Gender, City  Tools They Use  – Calculators, Configurations,  Comparisons  Offline Data  – Transactional, Affinity,  Psychographics http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Audience Targeting  Targeting: The process of identifying segments of similar users, and  incorporating them into the ad delivery decision  Behavioral Targeting: The process of identifying patterns of user  interactions, and incorporating them into the ad delivery decision  Interaction Recency Frequencyhttp://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

What is Behavioral Targeting?  A method used by online advertisers to increase the  effectiveness of a campaign  Uses information collected about an individual’s web  browsing behavior to select the advertisements to display to  that individual  Allows for the displaying of ads that are more relevant to the  interests of the individual viewing a particular page  Because of this, it is believed that this type of targeting helps  advertisers deliver their messages to the individuals most  likely to be influenced by them http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

How Behavioral Targeting Works  Tag  Segmentation  Behavioral Targeting http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Why Does It Work?  Reach and identify qualified audiences based on their  behaviors, interests and habits  Target relevant ads to engaged consumers throughout their  purchasing cycle  Improve online advertising performance, reduce waste and  increase ROI http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

At emagine, we work with 2  internationally respected firms  for audience segmentation. http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

VisualDNA http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

The VisualDNA Customer Profile http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

AudienceScience http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

The AudienceScience Customer Profile http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Understanding Market Segmentation  Learning How to Break Down Your Customer’s Into Groups http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Market segmentation is the process that  companies use to divide large markets into  small markets that can be reached more  efficiently and effectively with products and  services that match their unique needs http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Market Segmentation http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Market Segmentation Divides the market  Divides the market into different  into groups based on geographical units  variables such as such as nations,  age, gender, family regions, states,  Geographic  Demographic  size, income, counties, or cities  segmentation  segmentation  occupation and  education Divides buyers into  Divides buyers into different groups  Psychographic  Behavioral  groups based on based on social class,  segmentation  segmentation  their knowledge, lifestyle, or  attitudes, uses, or personality traits  responses to a  product http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

How Do We Market To These Segments? http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Marketing Segmentation  New vs.   4 Key  8 Major  16 Visitor  All  Returning  Products  Markets  Personas 100% of visitors  100% of visitors  1 segment = all   16 segments = all  http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Market Targeting  Mass  Segmented  Niche  Local/Individual Undifferentiated  Differentiated  Concentrated  MicroMarketing  Marketing  Marketing  Marketing Targets the  Targets several  Targets a small  Practice of whole market  different market  share of a large  tailoring with one offer  segments and  market  products and  designs separate  marketing Mass marketing  offers for each to  Limited company  programs to suit  achieve higher  resources  the tastes of Focuses on  sales and  specific common needs  stronger position  Knowledge of  individuals and rather than  the market  locations what’s different  More effective  and efficient http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Mapping our Data to Sellable Segments  View content  Interest  View product information  Life‐stage  View ad  Lifestyle  Click on ad  Intent  Purchase something  Behavior  Search for something  Demography  Attend an event  Provide information about themselves http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Mapping our Data to Sellable Segments  Interest  Life‐stage  Active Travelers  Lifestyle  Intent  Affluents  Behavior  Demography http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Understanding How Targeting Works  General Testing   Segment Testing   Targeting  Profile Targeting http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Results from Mass Marketing  Price  Direct Sales  Fill by ad networks  Volume http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Results from Market Segmentation  Price  Direct Sales  Audience‐based selling  New Revenue  Fill by ad networks  Volume http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Results from Audience Targeting  Price  Direct Sales  Audience‐based selling  New  Revenue  Fill by ad networks  Volume http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Know Your Customer Types http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

The Resistant Customer   Mindset: Hates your company and  holds deep resentment for your brand   Behavior:  – Will spread negative word of  mouth wherever possible  – Took their experience with your  brand personally and is looking for  revenge  – Will defect to your competitor first  chance they get   Loyalty: Zero   Possibility of Defection: Extremely High  (you can’t save this group) http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

The Indifferent Customer   Mindset: Sees your company/product/ service as nothing more than a  commodity   Behavior  – Will always try to get lower prices  to the point of near zero margin  – They will promise volume or future  business, but see little unique  value in your offering  – Always willing to walk away from  the sale because they have other  options available   Loyalty: One   Possibility for Defection: Very High http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

The Acceptant Customer   Mindset: Expects your customer to  provide the maximum of what’s asked  and nothing more   Behavior:  – Doesn’t think of your brand until  absolutely necessary  – Comes to you because you have  become a habit or more  convenient choice  – Maybe aware of other, better  options, but simply hasn’t made  the effort to pursue them   Loyalty: Two   Possibility for Defection: High  – Customer expectations can  outpace what you provide http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

The Preferential Customer   Mindset: Has grown to like your brand  and tends to understand the unique  value that you provide   Behavior:  – Most of us make the mistake of  making this customer type the top  of our customer pyramid  – When given a choice, they will  probably continue to use your  brand  – Very aware of industry trends and  can surprise by defecting if you  have not given them benefits or  raised the bar on service or  innovation   Loyalty: Three   Possibility for Defection: Somewhat  High http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

The Evangelist    Mindset: The pinnacle of the customer  relationship and would buy anything  you offer   Behavior:  – They tell everyone they know  about your company  – Mentions how satisfied they are  even in casual conversations  – Your brand has become part of  their life  – Finds personal meaning with your  brand  – Worth their weight in gold because  they do more to grow your  business than any ad campaign   Loyalty: Four   Possibility for Defection: None http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Calculating Customer Lifetime Value  What is a customer worth? http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Customer Lifetime Value?  Customer Lifetime Value (CLV) is how we determine what a  customer/client is worth over the lifetime of their relationship  with the brand  This is difficult to calculate for consumer goods, but very easy  for service based and financial services brands  What we are looking to understand is which customers are  worth keeping as clients and which should be let go to  increase profitability  This may seem like a dirty way to determine how much work  you do to maintain client relationships but it is a requirement http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

New Customer Valuation http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled 

Finding Your True Audience

by emagine group on Mar 14, 2011

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Finding Your True Audience Presentation Transcript