It was only a few years ago that businesses were suddenly overwhelmed with the opportunities their sophisticated CRM systems unlocked: retail transactions and loyalty
programs presented clear, real-time snapshots of their audiences, and it was the dawn of a new day for marketing effectiveness.
Then online data burst into
the mix and really took centre stage -- cue the programmatic "boom" and the consequential ad-blocking furor we have seen lately.
Using data to identify
people in the online world has fallen short of expectations, however, as usually advertisers are not marketing to real people (what we call “people-based” marketing), but rather to
cookies. These do not paint a true picture of a consumer’s digital activities, not least because cookies are not supported on mobile devices, but also because they represent a “best
guess” at who a consumer is rather than offering certainty. Despite this fatal flaw, cookies are the metric that a vast number of brands use for targeting and measurement, resulting in a much
less individual engagement strategy.
Let’s take an example of how advertisers could use our offline purchase intent signals to make smarter advertising
decisions.
Naturally, in the run-up to the summer period, I have picked up various holiday items in some of my favourite shops -- and although I might not
have booked a holiday yet, I could be in the market for one very soon. In fact, I wouldn’t mind being targeted with a few deals online to give me some inspiration for when I do decide to book.
Despite this, every time I log on, I see the ad for the same pair of shoes I bought two weeks ago. In a perfect world, advertisers wouldn’t rely on my old cookies anymore, but be able to deduce
my intentions using my offline intent signals.
Moreover, device proliferation has totally altered the way consumers engage with the world -- when I go
online, it’s likely to be on a mobile device rather than on desktop. With an average of 8.3 devices per household in the UK, mobile usage is skyrocketing, and
for marketers that presents a significant opportunity to interact meaningfully with consumers.
Specialised companies that manage data through wider
partnerships in vertical sectors -- such as retail, automotive and finance -- can help businesses to maximise the scale of their first-party data, or even supply it in the instance that first-party
data is minimal or not accessible.
People-based marketing works at its best when a wealth of “real-world” data is integrated into the
audience-building process, allowing advertisers to match offline characteristics to online personas. If a car manufacturer is able to access customer data through a partnership with a data provider
like the breakdown and insurance service RAC, for example, it can identify all the individuals who own a particular make or model of car, then cross-reference this audience with customers whose car is
three or more years old (the typical product life cycle for re-purchase of new vehicles).In this instance, the manufacturer can then target specific
audiences that are likely to be in market for a new vehicle, and successfully market to them with products that will suit their needs.
In a world where
consumers are fatigued by digital media and are even "switching off" to detox from
digital, there is more of an imperative to make sure messages are made relevant and convenient each person behind a device.
The more meaningfully
a brand speaks directly to a consumer, the more likely the consumer will be to join the conversation -- and ultimately, this conversation will only be developed through an understanding of each
person’s unique online and offline personas.