Finding Your True Audience

http://emagine‐group.com ExperienceFocused,SociallyActive,DigitallyEnabled

FindingYourTrueAudienceTargetingtheRightCustomerattheRightTimewiththeRightMedia


Anonlineusersseesmorethan1,800adsperday,whichisanincreaseofmorethan250%since2004.


Howoftendoyouusetheinternettoresearchbeforeyoupurchase?


Whichtypeofadsinfluenceyoumoreasapotentialbuyer?


9NeedtoKnows Revenuesarestillrelevant

– Collectinformationaboutcustomerstoestablishhowmuchcashmoneytheybringtoyourtable

Happinessiscontagious– Focusonhappycustomers

PricesensitivityisNOTagoodthing– Don’tmakeyourmarketpositionaboutprice– WhenMickeyDrexlertookoveraCEOofJCrew,hewaslookingforcustomerswillingtopaymoreforwell‐madeclothingandincreasedrevenue170%inthefirst5years


9NeedtoKnows Thebiggertheproblemsthebetter

– Thebiggertheproblemyourbrandcansolve,thebiggerthemarketresponse

– Intheearlydaysoftheinternet,AOLwentafterpeopleinterestedingettingonlinebutnotwillingtodoitalone

– Asaresult,30millionpeoplesignedupandtheybecame4thonthelistofeventsthatshapedthefirst25yearsoftheweb

Beonthelookoutforsomethingnew– Introducingnewproductsandservicescangenerateorganicgrowthcompaniescrave

– Focusonyourcustomersthataremostinterestedinnewinnovationsfromyourbrandtogeneratebottomlinegrowth


9NeedtoKnows Outthereadvocatingforyourbrand

– Thegreaterthelevelofinfluenceabuyerhasamongtheirsocialnetworksandwordofmouthmarketing,themoreabrand’smarketingROIwillbenefit

Ahubwithlotsofspokes– Themoreactiveandengagedacustomeriswithdifferentsocialmedia,themorevaluabletheycanbetoyourbrand

– FordMotorCo.pickedout100twenty‐somethingYouTubestorytellerswho’ddevelopedafancommunityoftheirownandgavethemaFiestafor6months

– EachmonththeysharetheirexperienceswiththeircommunitiesviaYouTube,Facebook,twitterandFlickr

– Fordreceived50,000requestsforinformationandsold10,000unitsinthefirst6daysofsales


9NeedtoKnows Distinctiveneedsandwants

– Themoresimilarandpredictableatargetgroup’sneedsandwants,theeasieritistodevelopcompellingpositioningandmessaging

Meaningfultotraditionalanddigitaldecisionmakers– Getasenseofhowhigh‐valuecustomersusetraditional,digitalandsocialmediacommunicationsthroughoutthepre‐andpost‐purchaseprocess

– Understandhowtheliketointeractwithabrandwithindifferentcommunicationschannels


WhatIsEquity?BuildingCustomerEquity


WhatisCustomerEquity? Afirmisonlyasgoodasitscustomersthinkitwillbethenext

timetheydobusinesswiththem CustomerEquityismadeupof3parts

– ValueEquity–acustomer’sobjectiveevaluationofthebrand’soffering

– BrandEquity–acustomer’ssubjectiveviewofthebrandanditsofferings

– RetentionEquity–acustomer’sviewofthestrengthoftherelationshipbetweenthemandthebrand


ValueEquity Acustomer’sobjectiveassessmentoftheutilityofabrand

basedonperceptionsofwhatisgivenupforwhatisreceived Whatdrivesvalueequityforthecustomer?

– Quality–Whatisthevalueofthebrandofferings?– Price–Howattractiveistheprice?– Convenience–Howeasyisittodobusinesswiththebrand?


BrandEquity Thecustomer’ssubjectiveandintangibleassessmentofthe

intangible,aboveandbeyonditsobjectivelyperceivedvalue– Thisisdeterminedbythebrand’smarketingstrategy,tacticsandinfluenceoverthecustomerthroughlifeexperiencesandassociationswiththebrand

Whatdrivesbrandequity?– Buildingawarenessandattractivecustomers– Buildingemotionalconnectionswithcustomers– Remindscustomerstorepurchase


RetentionEquity Thetendencyofthecustomertostickwithabrandaboveand

beyondthecustomer’sobjectiveandsubjectiveassessmentsofthebrand– Focusesontherelationshipbetweenthecustomerandbrand,basedonactionstakenbythebrandandthecustomertoestablish,buildandmaintainarelationship

Whatdrivesretentionequity?– Loyaltyprograms(frequentpurchases/rewardsprograms)– Specialrecognitionandtreatmentprograms– Affinity(emotionalconnectionprograms)– Communityprograms– Knowledge‐buildingprograms(workshopsandseminars)


Audiencetargetingcanidentifythebestconsumersforaspecificadorcampaignandcanbeusedtoeffectivelyreachsales,acquisitionandbrandinggoals.


TheIngredientsofTargeting Whatarepeoplelookingfor

– SearchEngineinformation Interests

– Contentofarticlesviewed WhereTheyGo

– Pages,Sections,Sites WhatTheySayAboutThemselves

– Incomeranges,Gender,City ToolsTheyUse

– Calculators,Configurations,Comparisons

OfflineData– Transactional,Affinity,Psychographics


BehavioralTargeting:Theprocessofidentifyingpatternsofuserinteractions,andincorporatingthemintotheaddeliverydecision

Targeting:Theprocessofidentifyingsegmentsofsimilarusers,andincorporatingthemintotheaddeliverydecision

Interaction Recency Frequency

AudienceTargeting


WhatisBehavioralTargeting? Amethodusedbyonlineadvertiserstoincreasethe

effectivenessofacampaign Usesinformationcollectedaboutanindividual’sweb

browsingbehaviortoselecttheadvertisementstodisplaytothatindividual

Allowsforthedisplayingofadsthataremorerelevanttotheinterestsoftheindividualviewingaparticularpage

Becauseofthis,itisbelievedthatthistypeoftargetinghelpsadvertisersdelivertheirmessagestotheindividualsmostlikelytobeinfluencedbythem


HowBehavioralTargetingWorks

Tag Segmentation BehavioralTargeting


WhyDoesItWork? Reachandidentifyqualifiedaudiencesbasedontheir

behaviors,interestsandhabits Targetrelevantadstoengagedconsumersthroughouttheir

purchasingcycle Improveonlineadvertisingperformance,reducewasteand

increaseROI


Atemagine,weworkwith2internationallyrespectedfirmsforaudiencesegmentation.


VisualDNA


TheVisualDNACustomerProfile


AudienceScience


TheAudienceScienceCustomerProfile


UnderstandingMarketSegmentationLearningHowtoBreakDownYourCustomer’sIntoGroups


Marketsegmentationistheprocessthatcompaniesusetodividelargemarketsintosmallmarketsthatcanbereachedmoreefficientlyandeffectivelywithproductsandservicesthatmatchtheiruniqueneeds


MarketSegmentation


MarketSegmentation

Geographicsegmentation

Demographicsegmentation

Psychographicsegmentation

Behavioralsegmentation

Dividesthemarketintodifferentgeographicalunitssuchasnations,regions,states,counties,orcities

Dividesthemarketintogroupsbasedon

variablessuchasage,gender,family

size,income,occupationand

education

Dividesbuyersintogroupsbasedontheirknowledge,attitudes,uses,or

responsestoaproduct

Dividesbuyersintodifferentgroupsbasedonsocialclass,lifestyle,orpersonalitytraits


HowDoWeMarketToTheseSegments?


MarketingSegmentation

100%ofvisitors 100%ofvisitors

1segment=all 16segments=all

All Newvs.Returning

4KeyProducts

8MajorMarkets

16VisitorPersonas


MarketTargeting

UndifferentiatedMarketing

DifferentiatedMarketing

ConcentratedMarketing

MicroMarketing

Mass Segmented Niche Local/Individual

Targetsthewholemarketwithoneoffer

Massmarketing

Focusesoncommonneedsratherthanwhat’sdifferent

Targetsseveraldifferentmarketsegmentsanddesignsseparateoffersforeachtoachievehighersalesandstrongerposition

Targetsasmallshareofalargemarket

Limitedcompanyresources

Knowledgeofthemarket

Moreeffectiveandefficient

Practiceoftailoringproductsandmarketingprogramstosuitthetastesofspecificindividualsandlocations


Viewcontent

Viewproductinformation

Viewad

Clickonad

Purchasesomething

Searchforsomething

Attendanevent

Provideinformationaboutthemselves

Interest

Life‐stage

Lifestyle

Intent

Behavior

Demography

MappingourDatatoSellableSegments


Interest

Life‐stage

Lifestyle

Intent

Behavior

Demography

ActiveTravelers

Affluents

MappingourDatatoSellableSegments


UnderstandingHowTargetingWorks

SegmentTestingGeneralTesting Targeting ProfileTargeting


Price

Volume

DirectSales

Fillbyadnetworks

ResultsfromMassMarketing


Fillbyadnetworks

Price

Volume

DirectSales

NewRevenueAudience‐basedselling

ResultsfromMarketSegmentation


Price

Volume

DirectSales

Fillbyadnetworks

NewRevenue

Audience‐basedselling

ResultsfromAudienceTargeting


KnowYourCustomerTypes


TheResistantCustomer Mindset:Hatesyourcompanyandholdsdeepresentmentforyourbrand

Behavior:– Willspreadnegativewordofmouthwhereverpossible

– Tooktheirexperiencewithyourbrandpersonallyandislookingforrevenge

– Willdefecttoyourcompetitorfirstchancetheyget

Loyalty:Zero PossibilityofDefection:ExtremelyHigh(youcan’tsavethisgroup)


TheIndifferentCustomer Mindset:Seesyourcompany/product/serviceasnothingmorethanacommodity

Behavior– Willalwaystrytogetlowerpricestothepointofnearzeromargin

– Theywillpromisevolumeorfuturebusiness,butseelittleuniquevalueinyouroffering

– Alwayswillingtowalkawayfromthesalebecausetheyhaveotheroptionsavailable

Loyalty:One PossibilityforDefection:VeryHigh


TheAcceptantCustomer Mindset:Expectsyourcustomertoprovidethemaximumofwhat’saskedandnothingmore

Behavior:– Doesn’tthinkofyourbranduntilabsolutelynecessary

– Comestoyoubecauseyouhavebecomeahabitormoreconvenientchoice

– Maybeawareofother,betteroptions,butsimplyhasn’tmadetheefforttopursuethem

Loyalty:Two PossibilityforDefection:High

– Customerexpectationscanoutpacewhatyouprovide


ThePreferentialCustomer Mindset:Hasgrowntolikeyourbrandandtendstounderstandtheuniquevaluethatyouprovide

Behavior:– Mostofusmakethemistakeofmakingthiscustomertypethetopofourcustomerpyramid

– Whengivenachoice,theywillprobablycontinuetouseyourbrand

– Veryawareofindustrytrendsandcansurprisebydefectingifyouhavenotgiventhembenefitsorraisedthebaronserviceorinnovation

Loyalty:Three PossibilityforDefection:SomewhatHigh


TheEvangelist Mindset:Thepinnacleofthecustomerrelationshipandwouldbuyanythingyouoffer

Behavior:– Theytelleveryonetheyknowaboutyourcompany

– Mentionshowsatisfiedtheyareevenincasualconversations

– Yourbrandhasbecomepartoftheirlife

– Findspersonalmeaningwithyourbrand

– Worththeirweightingoldbecausetheydomoretogrowyourbusinessthananyadcampaign

Loyalty:Four PossibilityforDefection:None


CalculatingCustomerLifetimeValueWhatisacustomerworth?


CustomerLifetimeValue? CustomerLifetimeValue(CLV)ishowwedeterminewhata

customer/clientisworthoverthelifetimeoftheirrelationshipwiththebrand

Thisisdifficulttocalculateforconsumergoods,butveryeasyforservicebasedandfinancialservicesbrands

Whatwearelookingtounderstandiswhichcustomersareworthkeepingasclientsandwhichshouldbeletgotoincreaseprofitability

Thismayseemlikeadirtywaytodeterminehowmuchworkyoudotomaintainclientrelationshipsbutitisarequirement


NewCustomerValuation

Finding Your True Audience

Business

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