It’s pointless trying to sell a product to someone who’ll never want
it. For marketers, one of the greatest challenges is finding out which
of the millions of potential consumers out there will most desire a
particular commodity.
Information can help – but with so much of it now available in the
form of Big Data, the problem is filtering out what’s most useful to the
task. That’s what micro-targeting looks to address.
#1. What is Micro-targeting?
Micro-targeting (also known as microtargeting, micro-niche targeting,
or nanotargeting) is a marketing method that uses demographic and
customer data to identify the preferences and interests of specific
individuals or small, like-minded groups.
#2. What’s It For?
Once the person or group preferences have been established,
micro-targeting is used to direct marketing messages that are
specifically tailored to influence their thoughts and actions. Analysis
of the customer data can also establish their preferred methods of
communication, so advertising and promotion can be sent via channels
they’re sure to use.
The “customer” in this case doesn’t have to be a buyer. Micro-targeting is used in political campaigning and awareness creation.
#3. Why Does It Matter?
For businesses, extending the reach of products and services to the
widest possible market is always a goal – preferably, while keeping
costs to a minimum. By targeting certain types of promotions at
analytically defined groups or customers (rather than everyone, all at
once), marketing budgets can be maintained at reasonable levels.
#4. How’s It Done?
Information management systems are
used to analyse data reflecting a target consumer’s past and current
buying practices. The findings are interpreted and projected, to give a
prediction of the customer’s behaviour and attitudes, in the face of
different types of incentive to use or buy.
Numerous data streams are studied, and the results are gathered and
used to separate potential customers out according to their likely “fit”
for certain products, services, or advertising strategies.
#5. Where Does It Happen?
For marketers, the biggest reach is through online channels. That means email and social media.
Smaller businesses can gather customer data using email marketing
software. The simplest method is to distribute a poll or questionnaire.
The answers sent back can be used to build up a clearer picture of
customer preferences, demographics and behaviour that become the basis
for predicting their future activities, and for targeting promotional
material at those most likely to be receptive to it.
Facebook Ads and Retargeting Ads are a well-known instance of
micro-targeting at work. Demographics and users’ past behaviour (clicks,
Likes, Shares, etc.) on the social media platform are used to determine
which types of advertisement they see in their newsfeed.
Groups on LinkedIn can be used to the same effect. Knowing the
special interests favoured by members of each group you belong to can
help to micro-target certain memberships for specific marketing
campaigns.
#6. Is There a Plan?
Begin the process by asking some basic questions, like:
Which kind of person or group is interested in buying our goods, or using our services?
Establish some clear objectives
for the information and insight you want to gain from your customers.
Look for patterns in buyer behaviour, web activity, demographics, and
preferences that haven’t been observed before, or recorded using
existing methods of data collection and analysis.
Why would someone want to buy products from us?
This is where your existing customer base can give valuable insight.
The people who have bought products or services from you before will
have opinions and attitudes to your offerings that can shed light on
what is and isn’t working for you. Focus on the positive aspects, and
use these to target advertising at prospective buyers who fit the same
demographic and/or behavioural profile as customers already on your
books.
How much do our consumers really want to hear from us?
This is key to how you’ll be collecting the feedback from your
customer base that’s needed for micro-targeting. For a poll or survey,
try to keep the number of questions down to five or less. If you include
too many, people will be inclined to think it’s a chore, and not bother
responding. For each respondent who completes the questionnaire, get
their name and their email address.
Armed with specific names and email addresses, your next set of
communications can be more personalised. Consumers will naturally be
drawn to messages bearing their names, and this can be the start of a
conversation that you can use to gain more information from them.
Keep the messages short, and give the consumer an incentive to keep
reading them. You might include a free download of an interesting
whitepaper, for example, or links to a web resource or video.
#7. How Much Time?
Micro-targeting is an ongoing process, with messages being refined
and customised as more and more data is gathered through interaction
with the target populations. And the return on marketing investments
through the likes of Facebook Ads won’t be instantaneous.
With a degree of patience and some diligent application of the
results of data analysis, micro-targeting can be an effective strategy
for the long term.
Do you use micro-targeting for any of your campaigns? Let us know in the comments below.
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