Looking for maximum return on investment? Develop a precision marketing strategy
Today, consumer brand interactions are more like a pinball machine bouncing across multi-channel touchpoints than the traditional model of linear motion through a funnel. This complicates marketers’ age-old goal of getting the right message to the right customer at the right time, from high-profile brand awareness ads to those that drive real-time sales.
With tight budgets and the imperative for CMOs to accelerate growth, it’s important to ensure consumers are viewing relevant, high-performing content every time they reach the decision point. Leveraging precision marketing to optimize decision-stage ad performance can dramatically accelerate time-to-purchase, while lowering cost per acquisition.
What is Precision Marketing?
The precision marketing model uses market segmentation to drive real-time sales through personalized, action-oriented content that is constantly tested and iterated against data. This allows you to create a winning content bank in the market to build loyalty, cross-sell and up-sell to existing and new customers.
Precision marketing is based on a plan of continuous testing and iteration, called a learning agenda. It starts with an assumption about the potential effectiveness of the content presented to a clearly defined market segment.
For example, imagine you are a food delivery brand assuming that a specific demographic, ages 18-35, may prefer ordering from a fast food chain over a local restaurant. You can test A/B ads that feature these two restaurants. Then, once you’ve identified the best performer, you can further optimize ads by testing other variations, such as messaging, theme, product images, colors, or call-to-call size. stock.
Today, consumer brand interactions are more like a pinball machine bouncing across multi-channel touchpoints than the traditional model of linear motion through a funnel.
Similarly, a CPG brand launching a new gender-neutral skincare product might hypothesize that the product will appeal equally to people of all genders between the ages of 20 and 40, in all national markets. A first step can be to test images of people representing different age and gender groups in all markets to determine if they are skewed. Real-time data will indicate where to focus next-step efforts.
But effective precision marketing goes beyond finding and analyzing data for micro-targeting purposes. It engages consumers across multiple channels by applying channel-appropriate creatives and messaging that address every stage of the buying journey. What consumers want to hear when gathering information can be very different from what they want to hear when they have made their decision and are ready to buy.
Often, creative teams drive campaign messaging strategy within a silo. Instead, precision marketing yields the best results when data, creative, and production teams work together, from strategy to ideation and from creative production to iterative execution.
Start with a strategy for better results
You will have limited ability to grow a thriving precision marketing ecosystem without a solid strategy – an obvious but often overlooked factor in content optimization and sales growth.
An opportunity assessment is fundamental to developing an effective strategy, starting with analyzing the data to establish a baseline. This allows you to identify growth opportunities, set goals, and measure future content performance.
What to Look for in a Creative Production Partner
The key qualities of a creative production partner will determine the speed and effectiveness of ad performance optimization efforts. Remember: Precision marketing requires a high volume of assets that allow you to implement changes quickly.
Look for a partner who has the expertise to interpret data and produce information-driven release management at scale, across all channels, to leverage and optimize an advertising test environment.
Additionally, choose a partner that has effective technology and automation, which will make frequent content iterations profitable. Pre-built templates can help speed up ad changes while adhering to brand standards and, where applicable, meeting industry regulations, allowing you to do more with less.
In Tag’s precision marketing creative production work for a client, we tested a variation of a banner ad that reduced cost per acquisition by 78% compared to the campaign average. This data allowed us to further refine the creation, bringing the client closer to his objectives.
It’s the type of opportunity for improvement that comes from building your precision marketing model with a solid strategy and an experienced creative production partner with expertise in digital strategy, creative ideation, and production.
Precision marketing drives customer loyalty and retention
Even better, precision marketing delivers returns beyond converting new customers. It allows you to better influence every step of the buyer’s journey, all the way to customer loyalty and retention. With continuous versioning, you can further optimize ads that retain, cross-sell and upsell existing customers, delivering a hyper-personalized experience that increases consumer satisfaction. And that’s the goal: satisfied and loyal customers.