The Elements of Effective Targeted Marketing, Part 2 on bigdataexchange.com

The Elements of Effective Targeted Marketing, Part 2

The indicators that your ideal customer is actually ready to buy

In part one of this series, we discussed ways to identify your ideal customer. That’s the first, basic step in targeted marketing.

This is insufficient to refine a campaign, however – not by a long shot. True, highly-targeted marketing is all about reaching out to individuals who are actually ready to buy. And there are two subsequent steps in the process to achieve this: using predictive analytics and then real-time indicators that point to an imminent purchase.

Predictive analytics are last-gen targeted marketing – but still useful

The last generation of targeted marketing relied heavily (almost solely) on predictive analytics – which looks at data to spot behaviors, milestones, and demographics that are correlated with a purchase decision.

For example, as we described in a previous post:

The data will let you know that “Craig Smith” is about to finish paying off his car loan. A predictive analysis suggests that he might be interested in buying a new car. However, Craig may be just as likely to keep it in order to avoid making car payments. What if there are 10 million Craig Smiths out there? Not many of those individuals will shop for a new car. In fact, statistics might indicate that only about 10% of them will do so.

Predictive analytics takes the data describing your ideal customer – which may be, say, 50 million people for a national business – and refines it down to those who may be looking to buy based on historical data; in the above case, the 10 million individuals who just paid off their car loan.

Predictive analytics can use a variety of factors for different decisions. As another example, an individual who just moved and forwarded their mail may be in the market for new furniture for a new home. Individuals who bought a tablet computer five years ago could be ready for an upgrade. Consumers who completed the minimum contract for cell phone service might be interested in another provider with a lower rate. Perhaps someone recently had a baby. They would need diapers, clothing, baby supplies, and even furniture, such as cribs or changing tables.

These predictors are very useful and represented a massive step forward for targeted marketing. But they are still inefficient when used in isolation.

Predictive analytics narrowed down the above example list of 50 million to 10 million potential car shoppers – but how many of the latter group will actually buy?

If that number is really only one million, nine out of ten marketing dollars are wasted if you reach out to the whole group. This is why predictive analytics must be combined with real-time data that features actual indicators someone is shopping for a new car.

This is where targeted marketing gets real.

What signals that a customer is actively looking to purchase something?

Indicator #1: Online activity

One of the easiest ways to know whether someone is in the market for a product is through their online activity. Whether the person has visited cars.com, realtor.com, or a site that offers free diaper delivery, these indicators can be tracked and collected as real-time data.

Indicator #2: Visited a physical location

Technology can tell us when a customer has visited a physical location, such as a car dealership or a retail clothing store. It’s done via geofencing, a location-based service that uses GPS, Wi-Fi, and cellular data to track where people go within a certain radius. You can even collect data based on point-of-service (POS) systems to find out what customers bought if anything.

The complete targeted marketing process with BDEX

You’ll start the targeting process by defining your customers, and BDEX can help you refine this definition with data. From there, we fuse predictive analytics with the real-time indicators of people who are looking to buy right now. Based on these parameters, we provide you with an actionable list of your best customers as they are actively shopping for your product or service.

In the above example that could represent a nationwide auto dealer, the process moved a list from 50 million to 10 million – and finally down to the one million individuals who are really looking to buy a car.

But that’s just a generic example. The data is often specific enough – in terms of industry, product or service, and behaviors – to narrow down weekly lists to merely a few dozen individuals, in some cases. This means you get a recurring, narrow, and highly-actionable list of potential customers.

When this list is fused with our Data Exchange Platform (DXP) and Device Graph, it includes contact information as well as the different devices that prospects use in their daily lives.

This gives you the power to reach out to individuals who are specifically looking for your products and services, as well as the means to reach out to them where they are likely to see your message.

Marketing doesn’t get any more targeted than that.

Reach out to us today to learn more.

BDEX features the first-ever Data Exchange Platform (DXP). The BDEX DXP and DAAS platforms enable companies to acquire impartial, quality-scored, third-party data reaching the right people at the right time like never before. We offer cross-device matching, auto dealership services, DAAS, real-time targeting, and custom segment building that is ideal for any industry, including auto dealers, retailers, brands, agencies, out-of-home, and franchises.

Data-Driven Direct Marketing for Auto Dealers on bigdataexchange.com

Data-Driven Direct Marketing for Auto Dealers

How modern car buying habits can be used to create highly-targeted marketing

Just as with nearly every aspect of our lives, technology has transformed the way people search for a new car. That same technology is also helpful in collecting data that marketers can use to very specifically target potential buyers.

Of course, having the right information is essential. In the past, the data has told marketers that “Alan Smith’s” truck loan will be paid off soon, but it can’t tell if he’s actually searching for a new truck. Until now.

BDEX uses real-time data to more precisely target those who are actively in the market for a new vehicle. How is this done? First, let’s discuss modern search habits when it comes time to buy a new vehicle.

Search habits of the modern automotive customer

Car buying has gone digital in a very big way. A majority of customers now begin the buying process by doing a tremendous amount of online research, from looking for types of vehicles and reviews to maintenance costs and depreciation of the major car brands. They also use a mixture of different devices for research, including smartphones, tablets, and computers.

Look at these stats from an AutoTrader.com/Kelly Blue Book study:

  • Car buyers spend 59% of their time researching online
  • 46% of car buyers used multiple devices in online searches

•  83% used a computer (desktop/laptop); 46% used a smartphone; 41% used a tablet

•  14% only used mobile devices

  • Only 30% of car buyers knew the exact make/model they wanted before they started researching
  • Third-party sites are the most-used of any online resource, with 78% of car buyers visiting at least one of them
  • Car buyers spent 60% of their time on third-party sites
  • The top 5 online activities of car buyers:

•  Researching car prices

•  Finding actual vehicles listed for sale

•  Comparing different models

•  Finding the current worth of a car

•  Locating a dealer/getting dealer info

More evidence of modern automotive buying habits, including the use of social media, from a study by JD Power & Associates:

  • Internet shoppers visit an average of 10 automotive websites in their shopping process
  • The three most frequently visited third-party sites are: Consumer Reports, Edmunds, and Kelley Blue Book
  • 22% of new-vehicle shoppers use social media sites as a shopping source

Once digital research is complete, the majority of shoppers still visit an auto dealership in person

Walking into the dealership is still the most common initial point of contact for car buyers, according to JD Power and Associates. 56% walked into a dealership, compared to 25% who used the phone, 14% who sent an email, and 3% who participated in an online chat.

How BDEX uses the modern search habits of car buyers to create targeted lists of data

BDEX uses real-time targeting to compile data from connected devices that marketers can use to offer relevant products related to current online (and even offline) buying activity. For instance, the data can tell marketers that a potential buyer has visited a site like cars.com, downloaded an app, or signed up for a newsletter. Unique identifiers are fed into a database and cross-referenced with other databases to help identify consumer behaviors, devices, and patterns.

Marketers can learn when users have been researching cars online, which sites were visited, and the specific device that accessed them.

Precise data that targets offline habits

People do still need to visit dealerships in person, either to test drive a number of different vehicles or purchase a specific one. So, it’s also important to be able to track this kind of activity.

BDEX leverages “geofencing,” a technology in which GPS, radio frequency identifiers (RFID), Wi-Fi, and cellular data are utilized to see information about the places people go, including a local car dealership. This makes it possible to identify prospects who have visited competitors in your area – which lets you know that you also need to get their attention.

Data that allows you to target modern car buyers (or any other product)

BDEX uses the shopping habits of modern consumers to provide data that goes beyond guesswork – is this prospect actually looking to buy a car? This enables you to vastly increase the efficiency of every marketing dollar compared to traditional direct marketing methods. We have over 700 million device ID connections, as well as more than 900 billion data signals available through our proprietary Data Exchange Platform.

To learn more about BDEX and what this data can do for your automotive marketing, contact us.

Is That Data You’re Buying Any Good? on bigdataexchange.com

Is That Data You’re Buying Any Good?

3 big problems with common, overused data resources

The sale of data is big business. Data is of course used by businesses to target consumers who are likely to be interested in their products. Media companies use this same information to sell advertising packages for everything from TV and radio spots to direct mail services and digital ads on websites. And many organizations use data to inform market research that drives strategic decisions.

Unfortunately, there are three big problems with much of the stuff that is being sold and used: data that is too vague, massive overuse of the same third-party data, and flat-out incorrect information.

Problem #1 – Data that is too broad

The data that is being sold by most companies tends to be very broad and much of its use is based on predictive analysis rather than solid information. For instance, the predictive analysis projects that 10 million people might be looking to buy a new car, based on third-party data that shows these individuals are about to pay off their car loan. However, statistics might indicate that only about 1 million of those people will be actively looking to purchase a new car.

Marketers who rely on traditional data and predictive analytics are forced to market to all 10 million – wasting nine out of every 10 ad dollars on people who will never turn into customers. The numbers get even worse, of course, when factoring in the different response rates for different marketing vehicles.

And certain marketing firms looking to sell a business a direct mail campaign or an online ad buy, for examples, aren’t always interested in having a client reaching an exactly relevant audience. It’s in their best interest for the marketing vehicle to work, of course – but it’s also in some of their interest to upsell campaigns to 10 or 20 or 30 million potential targets, necessitating more impressions or pieces of mail.

Problem #2 – Massive overuse of third-party data

Another common problem is third-party data overuse. Basically, everyone is using the same playbook. Or the same databases, in this case.

If football teams followed this strategy, games would be a lot less competitive. The problem with overuse is that most platforms sell much of the same info to everyone, and the information they do sell is not very narrowly targeted. This doesn’t provide much of a competitive edge, in addition to the inefficiencies involved.

Problem #3 – Incorrect data

If you buy data from a company, you probably assume the information is correct. In many cases, this assumption is wrong. There are often mistakes in lists. The data could identify a consumer as a 35-year-old male when that person is actually a 35-year-old female. An individual could have moved from a previous address four years ago, but if the data is not sufficiently cross-referenced with other sources to verify it is current, more marketing dollars are wasted.

It’s crucial to authenticate data, and not all platforms have the capacity to do this effectively – either because they don’t have the right algorithms or they don’t have access to a wide enough range of sources.

How BDEX solves these problems

BDEX collects data in real time based on known behaviors of consumers. For instance, our data tracks when someone has searched online for a car or any other product or service, such as appliances, flights, and even diapers.

We also use the technology called “geofencing” that allows you to see the physical locations people have visited, whether that’s a car dealership, an IT services provider, or an appliance store. This gives you better quality data that includes your true target audience – only the individuals who are actively looking to buy your product, rather than the 10 million or so who are just maybe, possibly, likely to buy.

We also double, triple, and quadruple check information from multiple sources, to authenticate our data and ensure that it is current and correct.

Read more about how BDEX gathers its data.

BDEX features the first-ever Data Exchange Platform (DXP). The BDEX DXP and DAAS platforms enable companies to acquire impartial, quality-scored, third-party data reaching the right people at the right time like never before. We offer cross-device matching, auto dealership services, DAAS, real-time targeting, and custom segment building that is ideal for any industry, including auto dealers, retailers, brands, agencies, out-of-home, and franchises. Contact us today to get your customized marketing data.

Get the Data You Need at One Price

When choosing a data service, businesses may consider factors including the amount and variety of data a provider offers. But the most important question always comes down to money: How much will this cost?

One Data Solution, One Price

DMPs are notorious for their steep monthly service fees, and while there are hundreds of online advertising platforms, most of them handle pricing based on a CPM, or cost per thousand, basis. And as we mentioned in one of our latest posts, it can be difficult to determine if the right consumers are noticing your ads.

With BDEX’s DaaS solution, businesses can access BDEX’s marketplace and obtain data services for a fixed, low monthly cost. No longer wonder if your impressions will turn into conversions—know your target customer.

Shop Our Marketplace

Whether your company needs email, mobile, or cookie-based data, BDEX has the tools to target consumers across all channels. And with over 780 billion data points and 5,500 categories, businesses of all kinds can find relevant data in our DXP.

Go Ahead, Hit Refresh

BDEX has an abundance of traditional audience and real-time data available. And unlike most online marketing services, BDEX separates the cost of the data from the ad. In other words, if your company buys data from us, it’s yours to keep. Use it once or multiple times without paying every time you publish a new campaign.

BDEX is helping businesses of all sizes, including franchises and dealerships, target and serve their customers. We offer a variety of services, from shopping cart retargeting to geofencing, to DaaS solutions. Learn more on our website or email us at info@bdex.com.

Image via Flickr/401kcalculator.org

Why You Should Consider DaaS

You’ve probably heard the term SaaS. SaaS, or Software as a Service, combines the services of a software provider with a self-service approach. For a monthly or yearly subscription fee, customers can utilize software themselves, no hardware required. As the Internet became faster and as virtualization and big data tools developed, SaaS became more available, setting a precedent for other user-friendly tech products and services.

One of the byproducts of SaaS is DaaS, or Data as a Service. “In the last few years many businesses have sprung up offering cloud-based Big Data services to help other companies and organizations solve their data dilemmas,” says Big Data expert and writer Bernard Marr. And with more and more businesses utilizing data, it only makes sense that companies are offering “data on demand.”

But not all DaaS services are created equal. With BDEX’s data services, businesses can get the combined benefits of a data marketplace and data services without the upfront cost. For a fixed monthly fee, retailers, brands, and marketers can receive services like:

  • Email Retargeting

This service gives businesses the ability to automatically email users that have visited their website, even if a visitor leaves and never registers with the site. It is an opportunity to reach an otherwise completely lost website visitor.

  • Access to In-Market and Real-Time Data

Companies receive up-to-the-minute, real-time data about consumers looking for a product or service. This data can enhance current marketing and lead generation efforts.

  • Geofencing

Businesses can better target prospective buyers within a pre-defined geographic area.

  • Direct Mail Targeting

While digital marketing tends to be the primary focus in the use of online data, combining digital with more traditional forms of advertising, like direct mail targeting, is now possible.

With over 5,500 data categories, including finance and retail, the BDEX DXP has data for businesses big and small. Email us at info@bdex.com to learn more.

Image via Pixabay

Understanding Your Target Consumer: The Case for Utilizing Traditional and Non-Traditional Data

Any digital marketer’s ultimate goal is to increase sales for a particular brand or retailer, but targeting the right consumer can be a difficult task. Traditional demographics, like gender, age and marital status, are not enough to properly assess a person’s buying potential. Consumers are diverse, their lifestyle and behavior not necessarily linked to their age or gender. And with a wealth of online and brick-and-mortar retailers to choose from, they demand more for their money and more from customer service. Vying for a customer’s business, however, becomes a lot easier when your marketing material is geared toward the right audience. By taking the time to analyze consumers’ behaviors and personalities, marketers can target consumers more effectively and efficiently.

Out with the Old… But Not Completely

It goes without saying that traditional demographics still have a role to play in contemporary marketing. After all, people who live near the beach will be in need of beach supplies whether or not their personality is similar to that of their neighbors. But not all demographics are as black and white as location. John Forsyth, partner at Forsythe Insights LLC, demonstrates the problem with traditional analytics by citing the obvious personality differences between Prince Charles and Ozzy Osbourne. Both men are British and the same age, but marketing to them in the same way is an obvious mistake, as one is the heir to the British throne and the other a rock star. In other words, their distinctive personalities and behavior alone are reason enough to target them separately.

In with the New

A consumer’s behavior can provide marketers a wealth of information, from shopping habits to favorite restaurants, but that’s only the tip of the iceberg. Data companies can offer marketers a wealth of information learned from multiple platforms, including social media, mobile, email, direct mail, and apps. By the year 2020, experts estimate “about 1.7 megabytes of new information will be created every second for every human being on the planet.” And while 2020 may be four years away, there is still an incredible breadth of data that can be tapped at this very moment.

A customer’s personality and values drive their economic decisions, and when marketers take the time to truly understand their audience, they can identify specific needs and locate look-alike audiences with similar characteristics. Advertisers and retailers can also give their respective brands informed suggestions about what products and services to offer their customers next.

The Next Phase in Targeting

”With many companies struggling with online – and offline, for that matter – conversion rates,” says writer Jessica Carter, “It’s crucial that they start to understand better what makes consumers tick (or click, as the case may be).” When marketers know what makes a customer “tick,” they can approach consumers from a variety of angles, from customized social media ads to personalized emails with coupons for a specific item.

When you add real-time targeting to the equation, the data becomes even more valuable. Brands can find consumers shopping for their products and services moments after they begin to browse online. But that’s only the half of it; marketers learn not only what consumers want at a specific moment, but they can influence where and when their audience gets the product or service.

While marketers may feel overwhelmed by the amount of data available, taking advantage of the newest innovations in consumer identification while incorporating the best of traditional targeting is key to creating exciting campaigns that will keep customer interest—and revenue—on the up and up.

BDEX provides brands, retailers, and agencies with extensive, quality data from a variety of sources in a true marketplace environment. With over 20 billion data points tied to mobile IDs and every channel added to the marketplace each month, buyers can understand consumers like never before and create compelling campaigns that return real results. Email us to learn more.

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