Last updated on June 14th, 2016
You wouldn’t advertise toys to someone with no children, would you? Or a lawn mower to someone who lives in a highrise? What about a dog collar to someone who doesn’t own a dog? Probably not. So why do we see this so often online? Online retailers are notorious for casting a wide net hoping to find a buyer that fits their products. But this is often doing more harm than good. In fact, 74% of online consumers get frustrated when content (e.g., offers, ads, promotions, etc.) has nothing to do with their interests.
The transition from demographic to behaviors has launched a new way of thinking about marketing. A person’s location and gender may be nice to know, but they certainly do not give you accurate insights into their likes, dislikes or desires. So what exactly is behavioral marketing? And how can you implement it? Great questions.
Demographic vs. Behavioral Marketing
Demographic marketing includes targeting your customers based on data like age, income, region, gender etc… This wave of marketing peaked in the early 2000s. Originally, it was a great way of understanding where your buyers are located and why type of person they may be. But there were, and still are, unmanageable gaps in this data. You may know you have a 35yr old female customer in Atlanta, but what does this have to do with what types of products she cares about?
Sending an email to a demographically segmented list might catch the attention of some, but behavioral marketing is a far more effective avenue. And the stats say it all > behavior-triggered campaigns performed five times better than traditional batch campaigns!
Behavioral marketing analyzes things like:
- How often a customer buys
- What influences them to make a purchase
- How much they spend when they make a purchase
- What content they are reading
- How often they have viewed a particular item
Using this data, email marketers are able to craft compelling, highly customized campaigns to catch the attention of the right consumers. With the guessing game removed, you can get more return for your time and resources.
Using Behavioral Marketing in Your Email Campaigns
Behavior marketing can be overwhelming, especially when you are just getting started. How do you create triggers and how do you know which event or behavior is most important to act on? Whether you are a beginner or looking for more advanced triggers, take a look at the tips we found to be most effective.
Behavior Marketing Triggers:
- Cart Reminders – Establish automated cart recovery triggers as soon as someone leaves something behind. Send the first within a few hours of the customer leaving, then create triggers based on future actions. Send follow ups or create a personalized pop-up offer to continue with check out when they return to the store.
- Promotions – Offer coupons and rewards based on the products or brands your customer typically buys. Reward your most loyal customers by analyzing who has spent the most or shops on your site most frequently. 7 in 10 people say they made use of a coupon or discount from a marketing email in the prior week!
- Retention – Send an email to customers who have not shopped on your site lately. Use a rules engine (like in Kevy) to segment by RFM data. Then use these rules to trigger emails, pop-up offers or site optimization. If someone has not been to your site lately, send a “We miss you email” to encourage them to return.
Why Use Behavior Marketing?
Need more convincing to take the behavior marketing plunge? Take a look at these statistics:
- Campaigns that use behavioral targeting have 57% higher open rates
- Behavioral marketing campaigns result in 59% better click-to-open rates
- Event driven campaigns have a whopping 147% higher overall click rate
- 77% of marketers said purchase history had a very high impact on ROI
Email relevancy means retention and revenue for your business. Start collecting and analyzing your customer’s behavioral data now to see the difference for yourself.