What is individual-based marketing and why do brands need it?
Odds are you’ve probably heard about “people-based marketing,” the marketing technology phenomenon that, over the past few years, has helped brands activate their offline customer data online. Yet, despite the success brands have achieved using people-based marketing, it still leaves room for error. Individual-based marketing is different. It focuses on connecting brands with each individual customer, not people in a household, so that campaigns can be truly relevant.
Individual-based marketing is 100% deterministic, not probabilistic. Whereas people-based marketing can utilize a combination of deterministic matching and probabilistic algorithms to onboard customers for brands, individual-based marketing only uses 1 to 1 matching. This means that brands can confidently and accurately display personalized online advertisements to their customers at the individual level across multiple devices. Working with an individual-based data onboarding company, brands can connect their offline CRM (first-party) data with online identities to precisely target the right person, on the right device, at the right time.
Still not convinced? Here are the top 5 reasons why brands should incorporate individual-based marketing into their strategy for 2017:
1. Effective Use Of CRM Data – Individual-based marketing is fueled by first-party data, one of the most powerful yet underutilized tools in a brand’s marketing arsenal. Since the data is information aggregated from a brand’s direct interaction with its customers, it provides the greatest amount of insight and knowledge necessary to help make effective marketing decisions. Sadly, many brands misjudge the value of their first party data, often settling for probabilistic, household level, people-based marketing approaches.
2. Optimized Targeting – Consumers now more than ever demand more customized online shopping experiences. Individual-based marketing provides the ability to go beyond basic demographic breakouts (gender, income, age etc.) so that brands can take the guesswork out of content personalization and are not limited by generic marketing strategies. The last thing you want to do as a brand is unknowingly deter your audience because of a broad scale marketing campaign that lacks relevance.
3. Reduction Of Marketing Waste – With individual-based marketing, you can pinpoint the individuals most likely to purchase certain products or services and avoid the rest. This leads to higher conversion rates and improved ROI. The alternative? Continue playing display ad roulette with your marketing spend and hope your boss doesn’t mind.
4. Understand Each Customer’s Journey – Using customer insights (cross-channel/device habits) and closed-loop analysis (purchase behaviors) from individual-based marketing campaigns, brands can gain a true understanding of their customers and create products/services tailored to fit their needs.
5. People-Based Cookies Are No Longer King – Brands that continue to solely rely on the technology of people-based cookie targeting will be plagued with a list of issues. These issues can include poor personalization, lower ROI, inconsistent performance within mobile browsers, and inability to keep up with the progression of technology.
Individual-based marketing is revolutionizing the way that brands connect with their individual customers. It’s proven ability to connect marketers with real individuals has allowed for optimized targeting, the reduction of marketing waste, and a true understanding of each customer’s journey. Without it, brands will struggle to resonate with their customers and effectively reach their marketing goals.
Download the full resource paper here.