Micro-targeting is only possible when you can gain an understanding of your customers across a broad range of behaviors, preferences and context. To do that, you need to gain a full understanding of each customer based on all your interactions with them: product preferences, transactions, channel use, purchases, payments, website interaction, social behavior, and more.
In all likelihood, you are already amassing much of this data in multiple internal silos, but are you able to bring all of this data together and use it to interact effectively with your customers? Within this trove of information are nuggets of insights to drive greater customer centricity.
NGDATA’s AI-powered CDP provides the means for effective micro-targeting. Here’s how:
1) Define the Opportunity: As with any major project in an organization, you must first define the problem/opportunity you want to address. Some appropriate potential opportunities for micro-targeting include:
- Increase current customer retention through cross- and upselling.
- Increase returns/revenues of a certain product or service – finding the appropriate customers/visitors to target.
- Decrease marketing spend or costs on current segmentation-based programs.
- Increase marketing precision on current campaigns.
- Decrease load on certain areas of the company through targeted outbound information campaigns.
- Deliver more targeted advertising to your base, increasing advertiser revenues from partner marketing programs.
2) Set Goals: How will you determine if you’ve been successful? By setting specific goals – for example, increasing the response rate of micro-campaigns by 300% or uplifting a program by three to four times – you can gauge your program’s success. Remember to be specific.
3) Ingest the Data: Select all the data sources you need, regardless of their origin, location, type and volume. Start with currently available data sources and easily add more as you enhance your targeting abilities.
4) Build the Customer DNA: Use your data to create living Customer DNA profiles based on a multitude of metrics, gaining the ability to understand customers in depth and to segment them into very granular micro-segments. Customer DNA will be continuously updated based on actions and interactions of the customer with your brand.
5) Identify Micro-Segments: As you build the Customer DNA, sets, or dynamic micro-segments of customers, will begin to emerge.
6) Allocate Targets to Micro-Segments Continuously: Define micro-segments by configuring sets based on DNA metrics. Triggers can be created that calculate who should be a member of which set. Sets continuously allocate and reallocate customers to micro-segments as behaviors, holdings and other metrics change. For the most effective campaigns, these sets will be continuously updated in real-time.
7) Define Campaigns for Identified Sets: Next, you need to determine which micro-segments should receive which offers via which channel. Looking at the Customer DNA, you can quickly understand the most appropriate targets for each offer and the best channels to increase campaign results. Additionally, you can match existing actions to the micro-segments using historical response behavior on the individuals of that set. When developing new actions, you can benefit from preference learning to determine what kind of action features a particular micro-segment.
8) Define the Campaign Contents and Go Into Production: You’re now ready to create the marketing campaign with the knowledge learned through the set DNA in the NGDATA CDP! With its open integration to execution systems, the CDP can load in the data on the set to implement an outbound program, for example.
9) Measure Campaign Performance: Once the program runs, the NGDATA CDP collects the response data in real-time, updating each Customer DNA profile, adding to the trending information on each individual customer.
10) Update Offers/Micro-Segmentation: What’s the next immediate step for each customer? You can answer that question quickly and easily based on real-time program results. With our CDP, alerts and triggers can be created and delivered to any kind of marketing and customer interaction execution system, to continue enhancing the relationship between your brand and the individual customer. Based on the performance of the micro-campaign, further and more targeted campaigns can be easily and quickly created – taking timely actions on signals, trends, exceptions and values. All of this happens without the need for added data integration and preparation, meaning there is no need to rebuild the data environment for each subsequent channel activity or program.