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BC4.1.19BehavioralMktgCh1-6.pptxBehavioral Marketing Dave Walter
Overview of Chapters 1 – 6
4.1.19
Living in a ‘Customer Revolution’ era
Brands used to control the story, message & access to inventory
Digital channels has changed that, consumers now have:
unlimited info about product, user reviews, best places to buy
omni access (brick ‘n mortar, ecommerce, purchase using any device, pick-up choices, etc.)
omni options: retailers, product availability (model, color, size, speed of delivery, new vs open-box vs used)
Price competition is now in the hands of the customer
Power of meta-searches – searches all online sources for real-time price of a specific product
Social media gives consumers a powerful voice to inform others if dissatisfied
A single consumer voice (or video) can harm a large brand via social channels
How brands succeed in this new era
Understand that the customer is king and treat them as such.
Keep our marketing thought & intelligence human-managed, not machine-managed
Machine-learning data platforms must be constructed & interpreted by humans to be an asset
Common sense & human logic still prevail over data & technology
Increase the personalization of message & timing
No longer a one-size-fits-all solution/email blasts don’t work
Our world is getting more fragmented and marketing needs to be more personally relevant in how we engage with each customer based on their needs and past behaviors.
Never stop learning, testing and optimizing
Behavior past and present informs future ALWAYS
Follow this rule and you will succeed more than fail
Behavioral Marketing
Ever-evolving discipline
Customer behaviors inform:
WHERE – we reach our target
WHAT – message & call-to-action based on where that customer is in consideration process or customer journey
WHEN – at one point in journey at what day/time/season
Customer behaviors enable:
LOOK-A-LIKES - prospect modeling based on looking at current customer behavior profiles
POST PURCHASE – strategies to improve loyalty/retention and cross-sell/upsell
Is behavioral marketing fully leveraged today?
Not as much as one would expect
Paralysis by shear volume of data is biggest culprit.
Which data should I focus on?
Where does the actionable insights live/from what source(s)?
Access to rich, third-party data can be costly
Long-term initiative with heavy upfront investment and gradual ROI
Most CMOs are not risk takers
Wait while others perfect the approach
Wait until approach is success-proven
Pressure to meet short-term/quarterly performance results
CMO Life Span Reality
Biggest challenge with lots of data sources:
Customer Interactions
data is silo’ed and tools are fragmented
Why marketers need behavioral marketing?
It’s evidence-based data.
ID’s patterns of real behaviors at scale
Purchase
Search history
Content consumption
Greatly enhances how we target a audiences
Better/deeper segmentation than demographic specs
Allows you to factor in their historical actions when exposed to messages:
A product
A message
An offer
It increases a brand’s orientation toward the customer.
It forces brands to think critically about the relevance and trust that each marketing interaction conveys.
The more we can create devices and methods that enable marketers to see life through the eyes of their customers, the more personalized, relevant and effective your communications will become.
Audience personas (segment by behavior vs. demo or psychographics)
Customer journey mapping
Examples of basic behavioral marketing
Remarketing via cart abandonment (put something in your shopping cart online and leave site before buying……brands ‘tag’ that user and re-market to the same individual with specific items from the cart)
Personalized follow-up message with specific products you put in cart
Opportunity to add incentive to purchase now (e.g. free 2-day shipping or free gift)
Reinforces prior interest/behavior to push over the edge to purchase
Car brand and dealerships sync service records, ownership duration and loaner car history with their marketing platform
Emails & DM with trade-in values and suggested model based on most recent loaner vehicle driven and/or current model owned.
TripAdvisor sends you a notification after you’ve been reading reviews, searching prices, etc. “Have you taken a trip somewhere (to Costa Rica) recently? Tell us about it.”
With a sub-message, “if not, plan one today on TripAdvisor”
Who is leveraging behavioral marketing to its fullest extent?
Relevance trumps privacy but that is changing quickly….
More data access = more chance for privacy infringement and abuse.
The younger the audience, the more acceptable they are of allowing access to their behavior data in order for content to be more relevant to them.
Legislature continues to evolve that is designed to protect consumer privacy related to data access:
HIPPA (Health Insurance Portability Protection Act)
COPPA (Children’s Online Privacy Protection Act)
European Union is farther along in data regulations than U.S.
GDPR (General Data Privacy Regulations) = comprehensive data regulations policy took effect 5/28/18 across European Union
Established zero tolerance/steep fines or imprisonment for abuse
US has yet to establish a similar, sweeping data regulatory rule book
How Cambridge Analytica bent the data privacy rules…to influence the U.S. Presidential election
Accessed personal data from Facebook
Legal
Claimed it was for academic purposes – but lied, as it was for commercial purpose
Illegal
Re-sold data to others (Russia, other orgs who wanted to influence U.S. voters)
Illegal
Creates election bias for those targeted
Targeted and messaged select Facebook audiences based on cross-segmenting with political party affiliations
Facebook has banned CA from using their data – ever again.
FBI is actively investigating & monitoring social media and data privacy related to Nov 2016 and all future elections
How do brands evolve their behavioral marketing prowess? Not overnight…
Nudges vs. Revolution
Small steps, consistent integration of more data, slow & steady but with a long-term plan mapped out
Tackle communication channels one-at-a-time.
Understand and perfect the best way to utilize Facebook, measure it’s data/response, and optimize….before moving onto the next platform.
Embrace technology and let it work FOR YOU
CRM programs today can link all channels and all forms of behavioral data in an automated manner to perform real-time improvements/optimizations
Shift the way they think about analytics and communication programs
The first question should be, “what action are we trying to elicit?” followed by “how will be measure that action?”
Customer Engagement Framework
The Customer Journey is Changing
50-80%
of the buying process is done before you speak to your buyer
remains preferred channel of most consumers
Mobile and
social engagement are up
Online
traffic and sales are increasing
Customers are now clearly in control
IBM Marketing Cloud Channel Integration Model: Behavior-Fueled Platform
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Mobile Apps
Forms
Video
File
Downloads
Site/Page
Visits
Blog Visits
Support
History
PopIn
(Trade Show or
Remote Data Collection)
Messaging
Social
Mobile \ Geo
Business Data
Web Analytics
Social
Listening
Web
CRM
Check
In’s
Push to Mobile Apps
Behavior-based Micro-segment Personas – drive targeting & messaging based on past and present behaviors & mindset
