Tuesday, December 12, 2017

Big Data and Customer Targeting

Facebook, LinkedIn and other social media and networking websites coupled with smartphone GPS, AI and big data analytics allows the marketer to target customers in a way that was never possible before. 

Not only can the marketer target based on demographics, psychographics and physical location but also on intangibles such as highly correlated behaviors, purchases, web searches, affiliations, etc. 

So first, through factor analysis, cluster analysis and other big data analytics, you need to discover what correlates most closely with the purchase of your brand. Once you have discovered this, then you need to find ways to target people with those attributes. This allows for hyper-efficient targeting that makes old fashioned media planning seem quaint. 

Sometimes it is as easy as using the Facebook platform to run a highly targeted ad. At other times, you have to be creative about how to reach people with certain attributes.  

The beauty of this approach is that you can send very specific messages to each target group or segment. Each message will focus on the angle that will most appeal to people in that group or segment. 

Microtargeting is a related concept. it is the use by political parties and election campaigns of direct marketing datamining techniques that involve predictive market segmentation (aka cluster analysis). It is used by United States Republican and Democratic political parties and candidates to track individual voters and identify potential supporters. The term "microtargeting" was coined in 2002 by political consultant Alexander P. Gage.

When you combine prospect location with targeted messages on mobile phones you are entering the realm of geo-fencing and geo-targeting. Because I know A and B about you and because I know that correlates with an interest in my product and brand and because I know you are in a physical location proximate to where my brand is available for purchase, I will send you a highly personalized alert using the most compelling message for you indicating that I will give you an incentive to purchase my brand now. For an example of this, click here.

While brands need to be managed at a global level, increasingly they need to be marketed at an individual level. With today's tools, that is becoming more and more possible. 


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