Do you have a strategic plan for reaching your third quarter goals? If you are trying to grow your business or optimize your marketing efforts, precision targeting can help you achieve results. Instead of advertising to a general audience, precision targeting chooses which households to target. It’s an intentional approach to advertising, focusing on the best prospects for your business.
What happens when you use precision targeting?
Response Rates Increase
Precision targeting is all about identifying the people who are most likely to buy your product or service. When you advertise to the people who are interested in what you have to offer, you will see an increase in response rates.
Shorter Marketing Lists
Part of precision targeting is highlighting the households who are least likely to respond. Businesses can trim anywhere from 30% to 60% of their target audience. With a shorter marketing list, they can drastically reduce their advertising waste and narrow their focus to key households.
More Touches
When you have a precise marketing list, one of two results occur. Some businesses opt to keep their savings and generate the same campaign results for less marketing spend. Others will use those savings to purchase more marketing touches. Some companies will even add additional marketing channels, so they can surround their targets with their offer. By investing in more marketing touches and channels, they are able to increase their response rates.
Increase in Sales and ROI
Precision targeting can increase sales because you are getting your message in front of the right people. By focusing on the households who are most likely to do business with you, you optimize your marketing efforts and will see a higher return on your investment.
Lower Response Rates
Sometimes, businesses will see a decrease in their response rates. While at first this seems alarming, it is actually good news. In these cases, businesses typically saw high response rates to offers but were not able to complete many transactions due to unqualified leads.
Precision targeting helps them cut through the volume of responses and receive higher quality leads. Not only are they able to operate more efficiently, but they also see greater sales figures.
How Does Precision Targeting Work?
Gather the Data
First, you need to gather all of your customer and transaction data. If you don’t have any data, create a system for collecting customer information. Ask people to fill out forms on your website, sign up for your newsletter, or participate in your rewards program. Most importantly, capture their data at the close of sale.
Enhance the Data
Thousands of data variables exist, and you can use these data points to identify the best prospects for your business. You might know your customers are females between the ages of 45-60, but which ones should you go after? Enhance your data by working with a data provider to add additional variables to your marketing list.
Identify Those Most Likely
Analyze the data and see what correlations exist among your top customers. Do your customers love gardening, reading, or wine? Perhaps they are sports fanatics or big into home improvement projects. These additional data points can help you build out your customer profiles and identify those in your marketing universe that are the most likely to buy from you.
Score Your Prospect Universe
You might have thousands or millions of records in your target audience. How do you choose which ones to advertise to? Your marketing budget will only go so far, and you want to maximize its results. With precision targeting, you know what the ideal prospects look like, and you can score and rank each person in your marketing universe against that profile.
Select the Best
You don’t need to take a random sample from your marketing universe and hope for the best. Select the highest scoring households for your campaign. If you want to use a tiered marketing approach, precision targeting highlights clear break points for which records should be in each tier.
Precision targeting requires more work on the front end, but the results it generates are worth it. You can select the best records and focus your time and efforts on those most likely to buy from you.
If you want to know more about how you can use precision targeting to increase your results, let’s connect.