Why Black Friday is ideal platform for programmatic Part 2 of 2)
April 26, 2015 No Response
As we take a closer look at lessons learnt from Black Friday, we find that using data technology to evaluate and define customer’s purchasing patterns that occurred during and after last November’s Black Friday would highlight those customers which marketers could define as ‘best fit’. These are the customers they would want to establish a relationship with and retarget.
Taking this kind of granular data would not just enable them to engage more meaningfully with these customers, it would increase their positive sales percentage by ensuring these particular customers’ shopping behaviours were their ideal match. Furthermore it would enable them to identify new customers who fit this same profile and who may offer value beyond sales, such as potential influencers.
Integrating this kind of smart programmatic modeling and then filtering the customer base into a hierarchical structure of behavioural-demographic segments would ensure the targeting is kept dynamic as well as relevant. In effect this could be applied to any regular event from targeting habitual football gamblers on the eve of every big game, to Christmas shoppers and lovers on the 14th of February.
If, say, John Lewis were to apply this strategy by gathering and studying their customer’s post-purchase behavioural data and filtering it to segment their customers accordingly, the messaging would also become more personalised. From the customers’ perspective, they would feel the greater relevance of the brand’s communication with them, resulting in increased satisfaction, brand loyalty and word-of-mouth referrals.
Furthermore, by defining specific trends such as those customers who make the least returns, those who make the most repeat purchases through to those whose data show little to no activity, marketers would be able to take very specific marketing actions accordingly, either to re-activate them, steer them towards more relevant products or let them go.
This approach would mean shifting away from guerilla-style marketing which centers around fueling a pricing frenzy, and leveraging instead the rich data available to better engage with the customer and reduce brand damage, not to mention reduce returns and complaints.
Focusing on the historical data which will indicate how a customer may act in the future will also enable a brand to be increasingly predictive in anticipating future customer needs.
Although it may seem like flipping the application on its head, there is a real case for applying a model which filters customers to ensure their tailored behavioural and demographic profiling actually fits the brand’s requirements.
As it turns out, despite all the bad media, Black Friday could in effect be an ideal platform to demonstrate the power of using effective customer modeling to increase the impact of targeted programmatic advertising.
Those days when a consumer looked at a pair of sunglasses online only to be followed across the internet with ads for varying sunglasses are now deemed quite normal. We should now be looking at new ways of applying this clever technology to ensure brands are engaging more meaningfully and not stabbing away in the dark.