Targeted marketing – is it valuable or pushing customers away?

Have you ever had a conversation about something and then it suddenly appears in your emails or on your social media feeds? I recently had a conversation about car insurance (which was quite specific to one provider and their multi car policy). I’ve never searched for this provider or had any interaction with them prior to this, so I was pretty surprised when I saw an advert on social media with a deal on their multi car policy - coincidence? Unlikely.

In a world full of smart technologies it’s no surprise when you scroll through your Facebook feed and see adverts that look strangely familiar. In-between posts of your friends’ holidays and pictures of their pets, you may find an advert for the car you’ve talked about buying or you may receive an email with a recommendation of accessories because the retailer knows you just love buying shoes to go with the outfit you’ve just bought (just look in my wardrobe!). The reality is that targeted and personalised marketing is everywhere, but is it valuable?

Targeted marketing comes from various sources ranging from things we’ve ‘liked’ on social media, websites we’ve visited or conversations we may have had that our smart devices have picked up on. Our digital footprint is huge and the data businesses hold on us, such as purchase history is extensive. It feels like there’s not much companies don’t know about us, a bit like big brother. Making sure the right data is used helps keep the message relevant which ultimately helps drive customer acquisition and retention. The more relevant the ad, the more valuable it will be to both the business and the consumer. It always makes me smile when I receive an offer based on my frequent purchases or, better still, logging into my Netflix account and seeing all the recommendations I can sit and binge watch for a few days…absolute perfection. It’s the little things that make the difference when making customers feel understood and valued.

As a population I think we’re used to seeing personalised and targeted ads, and 45% of us actually don’t mind them if we feel they’re useful or relevant. (i.) But how many of them really are relevant? The key is in the data. There are so many benefits for targeted marketing activity, mainly targeted ads & marketing encourages us to spend which, given the way we are currently spending, is key for profitable growth.

Consumer spending is at its lowest since 2012 and businesses need to find new ways to engage with customers and retain their existing customers. 75.6% of online baskets were abandoned in 2017 (ii.) This could be down to anything from delivery costs, price comparison, user experience or just that the total cost was simply too high. Targeted ads are a great way for companies to remind you that they’re there, remind you to complete your purchase and possibly even give you an offer to entice you to go back to complete the purchase.

With the masses of data companies hold it should – in theory – be simple to target customers and send them what they really want which will lead to growth. If you know that every 6 weeks I buy a new pair of shoes, are you going to send me marketing for an offer on shoes or an offer on coats? By keeping messages relevant, response rates and ROI will improve, but so will customer experience and satisfaction. Maybe the 55% who do not like targeted ads might start to find value in them? This is a big opportunity to really give customers what they want and, even better, an opportunity to show customers what they want before they know they want it. I know that if my favourite retailers offer me things I didn’t know I needed I’d triple my bag and shoe collection by Christmas – what a dream! Of course I’m part of the 45% who value targeted marketing but maybe this could engage the 55% who don’t see the value in targeting.

Targeting needs to benefit both the business and the consumer though, otherwise the investment is wasted and customers may even switch off from the brand. The right message, at the right time, to the right customer is so important when running campaigns. Want to stay relevant to your audience? Dig in to your data and be sure your messages are targeted. Get to know who your customers are, their likes and dislikes, favourite brands, bands, foods, destinations and everything in between will help you stay relevant with them. With GDPR fast approaching, you’re more likely to find more customers opting in to marketing if the messages are relevant, if not, they could be lost.

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