Rewriting the Marketing Rules in 2019
Some would say we’re living in the golden age of marketing. It’s never been easier to reach individual consumers in specific ways that mass marketing never could. And that’s true, of course – in theory.
But in the real world, many companies are struggling with truly understanding how to find their best customers – and how to convince them to buy.
That’s why Claritas has evolved its business to help our clients find new ways to optimize their marketing strategy across multiple channels. The goal? To allow our customers to get the most out of their marketing dollars in 2019.
Here are some key challenges Claritas customers are asking us to help them address:
- Successful CMOs want to eliminate fuzzy math. You’ve probably heard the famous quote by marketing guru John Wanamaker, “Half the money I spend on advertising is wasted; the trouble is I don't know which half.” Well, that quote is about a century old, but unfortunately, it still rings true. According to industry experts, marketers today estimate they still waste nearly 30% of their marketing budget due to fraud, poor planning or focusing on the wrong channels. In fact, advertisers lost nearly $7 billion in 2017 on ads that no human ever saw thanks to fraud.
In today’s world, marketers have more data on customer buying behavior available than ever before. But as the number of sales channels increases, accurately measuring the effectiveness of those channels is becoming increasingly difficult.
Consider this real-world scenario: A company sends out a direct mail campaign and gets a 2% conversion rate. But that conversion rate doesn’t tell the whole story. Because when you further analyze the IP addresses linked to the households that received the mailer, it turns out that 6% of those households used their online devices to either research or purchase from that brand.
So in reality, the percentage of customers who engaged after receiving the mailer was three times higher than the response linked directly to that mailer.
To maximize your marketing dollar, you have to truly understand what is driving sales across channels – and stop building your marketing strategy based on fuzzy math.
With the acquisition of AcquireWeb and Barometric, Claritas can provide its clients with never-before-available insights into the buying behavior of both existing and potential customers across all channels, whether they use a mobile device, a desktop or go in-store. And Claritas can help clients then use that knowledge to create and implement highly effective and profitable cross-channel marketing strategies.
- Forward-thinking companies are tracking both tried-and-true and new channels. Not only do you need to understand what is driving sales across your existing channels, you also need tracking tools that can adapt to new marketing channels. Like augmented reality, where global advertising revenues are expected to jump to $2.6 billion by 2022, up from $428 million in 2018, according to eMarketer. Or voice assistants, which eMarketer estimates are already used once a month by an around 91 million U.S. consumers.
Meanwhile, some older marketing channels such as podcasts are gaining new traction. In fact, podcast followers listen to about seven shows a week – which is up 40% since 2017, according to The MarTech Blog.
In this multichannel buying world, consumers engage with you whenever and wherever they choose. The brands that engage in multiple ways at the right times with the right customers are the ones that succeed. And to do that, companies need one, integrated tool that can help them track and measure a customer’s buying behavior across multiple channels – both old and new.
Companies also need the ability to track data not just by media (i.e. television versus online display ads) and channel but also by partner and placement – something that Claritas’s technology allows them to do. This is the only way to truly understand how a customer’s experience on one channel might lead to an actual purchase on another.
- Marketing leaders are shaking up their siloed departments. If your company’s marketing department is structured like most, then your teams are probably as siloed as your marketing channels used to be (or may still be today). Perhaps they’re spilt based on media buys versus marketing spend. Or maybe they’re divided even further, where the direct mail team is separate from the email or the social media marketing team.
And chances are your teams are compensated based on the number of sales they drive. But as mentioned earlier, those sales numbers may be based on fuzzy math. So your search team, for instance, may be getting more credit for sales than they actually deserve. And that can result in costly in-fighting.
If that sounds familiar, it’s time to take a good, hard look at the structure of your marketing department. Because if you’re trying to integrate your marketing strategy and build campaigns that actually maximize your effectiveness across channels, it makes sense to align your marketing team and its compensation structure to best support that strategy. And to do that, you need to know exactly how and why your customers are buying.
- Marketers are taking steps to understand the changing face of the American consumer. Today more than 131.8 million Americans – or 37.5% of the U.S. population – can be classified as “multicultural,” according to the Claritas report, The Growth Majority: Understanding the New American Mainstream. And their contribution to consumer spending continues to grow.
In fact, Asian and Hispanic American households will outspend Anglo-American households by $1.2 million and $500,000 over their lifetimes, respectively. Asian households, in particular, have impressive buying power, with an average household income of $116,319 – 36% greater than overall U.S. household income.
Increasingly, Claritas clients are asking for help in appending multicultural data into their existing customer relationship management (CRM) databases so that they can more effectively create messages that resonate with those audiences – and deliver these messages via their preferred buying channels.
And the results speak for themselves. One food producer wanted to increase sales for a product line designed to appeal to U.S. Hispanic and Asian communities. It turned to Geoscape, a Claritas company, for data that would help its retailers efficiently target these markets and optimize their inventory based on which specific multicultural communities shopped at each store. The result? Sales grew 300% in just one year.
- Companies are getting to know their anonymous customers. One of the biggest challenges that every marketer faces today is how to identify all customers, not just the ones that register to receive CRM communications. Consider the anonymous CRM segments that commonly exist today:
o Anonymous website traffic (90% of overall website traffic on average)
o Customers who have shopped at a brick and mortar store and paid cash
o Customers who have shopped at a brick and mortar store and not bought anything, simply browsed
o Online customers who purchased a product or service and chose not to join your CRM
o Prospect audiences who fit the attributes of your best customers but have not engaged with you
o Past customers whom you’ve lost track of. Have they purchased recently or not?
That’s why many Claritas clients are connecting the dots across both online behavior and offline data to gain a more comprehensive identity and purchasing profile of their ideal customer.
In fact, with its acquisition of AcquireWeb, Claritas has assembled one of the industry’s most robust identity graphs encompassing a proprietary data set of 95 million households and reaching more than 900 million devices daily in the U.S. The Claritas graph uses a combination of digital signatures – including mobile ID, IP address, cookies, emails and other digital signals – to identify and reach the largest audience in the market, all using a privacy-by-design approach.
Together, Claritas and AcquireWeb are making it possible for companies to build a more complete demographic and cross-channel buying profile of their ideal customers – both current and potential – than ever before.
- Today’s analytics teams are optimizing results while the game is still being played. Historically, marketers might implement a marketing strategy and not analyze the results until weeks or months later. But if you found out in January that the $2 million you spent on holiday media buys didn’t deliver the results you were expecting, how does that really help you? Or if you sent multiple buyers email or Facebook ads selling them something they already bought, that’s a huge wasted opportunity.
Forget the Monday-morning quarterbacking. You can no longer afford to wait weeks or months to see if your marketing campaign was actually effective. You need to be analyzing your marketing plan while you are executing it. So you need to work with a vendor that gives you access to data – or can help you analyze it – immediately after customers interact with your brand or buy your products.
That’s why Claritas acquired Barometric’s state-of-the-art analysis tools, which give customers insight into the effectiveness of their marketing campaigns as they’re running. This allows Claritas clients to improve the effectiveness of campaigns before it’s too late – and thus get the most out of their marketing dollars.
The Right Formula for Success in 2019: Identify. Deliver. Optimize. (Then Repeat.)
As the marketing world continues to evolve, successful marketers are transforming how they identify and sell to their ideal customers. And they’re turning to Claritas to help them accomplish just that – and build a truly integrated marketing strategy. Because it’s no longer enough to have a siloed marketing strategy that doesn’t truly tell you how consumers are engaging and buying across the multiple channels available today.
To succeed in today’s world, it’s still important to identify the right audience. But that’s only the first step. Next, you have to deliver the right message to those customers via the right channels.
Then, as soon as customers start buying, you need to analyze your data to determine which channels and messages are most effective and adjust accordingly. Finally, you repeat that process all over again. It’s the only way to truly optimize the effectiveness of each marketing dollar you spend.