Download Using online demographics to focus marketing activity

Using online demographics
to focus marketing activity
Understanding the online audience
An Experian Marketing Services White Paper | February 2015
People are different – population trends
People change. People are different. Social trends are constantly developing as
the way we live our lives evolve due to changing economic, cultural and
technological climate.
The average person leads a very different life today, professionally and personally,
compared to 10 years ago.
Technology has been one of the biggest drivers following the absorption of the
online world into every aspect of day-to-day life – from banking, to shopping and
entertainment. Social media has been a huge driving force of that change, allowing
people to live their social lives online – chatting with friends, keeping in touch with
relatives and sharing media.
The rise of smart mobile technology means it is possible to access the internet 24/7,
regardless of where or when. This brings into play all sorts of interesting locationbased factors. All this activity creates data. Modern people, due to the level of
technological activity, create more data than ever before.
How people behave online is of interest to brands because understanding of a
customer is key to informing how brands can market to them.
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What customer behaviour and propensity means for brands
Understanding the behaviour of certain customers allows brands to understand how
best to communicate with them. Some will prefer email, others social media.
Behaviour shows where people are and when they are there. Certain types of people
may have a propensity to visit a certain type of website or shop at a particular genre
or type of ecommerce store. Likewise, people who buy a certain type of car or earn a
certain wage may be more likely to go on holiday to a certain place.
An individual’s propensity to behave in a certain way depending on their history and
circumstance is an important factor for marketers. Based on what certain people are
more likely to do, brands can anticipate behaviour and maximise marketing efforts.
However, all of this depends on having a thorough and accurate understanding of
customer segments and knowledge of who the customers are in order to focus the
right marketing on the right people.
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Online behaviour
With changing population trends it becomes more and more important to understand
who people are in order to know how to market to them.
What follows is two examples of customer groups and some of the insights available to
their potential behaviours.
Fortunately, due to the sophisticated segmentation tools, consumer analysis processes
and online intelligence platforms now available, it’s possible to categorise individuals
into groups based on location, financial situation and behaviour. Using such advanced
techniques it’s then a straightforward step to highlight customers’ propensity to behave
in certain ways to inform marketing strategies.
We have chosen two groups which, at first glance, are fairly similar in order to
demonstrate the need for detailed analysis and segmentation. It is fairly clear that
below the surface both groups are quite different in terms of propensity and behaviour.
Evidently, straightforward age or demographic based marketing would not be able to
operate at as detailed a level.
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Bank of Mum and Dad
The first customer group is called Bank of Mum and Dad and consists of relatively
well-off families in upmarket suburban homes with grown up children continuing
to benefit from financial support.
TWICE
Key features:
•Married couples aged 50-65
•Adult children at home
•High salaries from senior positions
•Quality 4 bed detached homes
•Mortgage nearly paid off
•Use technology practically
18%
more likely to visit websites about skiing
It’s clear that this group are more likely to go on skiing
and snowboarding holidays. This is a potentially
huge insight for travel companies able to tailor
communications to put an emphasis on deals for snow
sports holidays. Likewise, advertising on skiing websites
or retargeting ski gear adverts may pay dividends.
29%
30%
more likely than the average user to visit shopping
sites selling books
Members of this group are evidently more likely to be keen readers
which should be of interest to book retailers. It would also be possible
to investigate what genres they prefer in order to tailor offers and
communications further.
more likely to check weather reports online
An interesting fact for brands who would like to reach this group is
that they are more likely to be found on weather websites checking
the state of the weather. This could mean placing adverts on weather
websites or doing deals with weather companies to reach a higher
proportion of the right customers.
Members of this group are more likely to be golf fans. This could
influence where a brand places its adverts but it could also be a
useful insight to incorporate into content generation. Content with a
golfing flavour or relevant to golf could be appropriate.
70% and snowboarding
Insights on likely behaviour
Digging deeper into the data it is possible to pull a number of insights which could
prove exceptionally informative for brands formulating marketing strategies.
as likely to visit golf websites
39%
more likely to visit websites about the performing arts
This would indicate that this group are potentially a good
audience for sellers of theatre tickets or high end entertainment.
more likely to visit sports yachting and
boating websites
This slightly more affluent group is more likely to be interested in
yachting and boating. Holiday companies which sell sailing packages
or sellers of boats and yachts may be interested in reaching them.
Of course, these insights need to be cross-referenced to reach maximum potential. For
instance Bank of Mum and Dad have an interest in both skiing and yachting. Therefore
it would be sensible for a travel company to market skiing holidays in the run up to peak
booking times but then switch it to sailing or golfing trips depending on the time of year.
Examples created using Experian’s Mosaic segmentation tool combined with online intelligence platform, Hitwise.
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Boomerang Boarders
Boomerang Boarders, a name coined for long term couples with middle range
incomes whose adult children have returned to live with them, is the
second example.
20%
more likely to visit travel agencies
34%
more likely to visit fishing websites
26%
more likely to send e-greetings
Key features:
•Adult children living with parents
Respectable incomes
•Own mid-range semis or
detached homes
•Older suburbs
•Search electricals online while
in store
•Adult kids learning to drive
Insights on likely behaviour
Members of this group are more likely to visit travel agents rather than
book holidays on their own. Travel agents would be sensible to focus
their attention on groups like this as they are likely to get less traction
from other groups less inclined to use travel agents. Similarly, brands
wishing to reach this group should consider advertising on travel
agent websites.
People within this classification are a third more likely to visit
fishing websites – indicating an interest in fishing as a pastime. This
insight could prove useful to brands trying to reach them (on fishing
websites for instance). People within this group may also react
positively to content related to fishing. Likewise, travel companies
may wish to offer this group deals and offers on fishing trips.
Digging deeper into the data it is possible to pull a number of insights which could
prove exceptionally informative for brands formulating marketing strategies.
20%
more likely than the average web user to use
web-based email services
Understanding that this group are more likely to access their email
online, or that they check their email more frequently than others,
should help inform email marketing strategies. Online email services
differ from desktop email providers so tailoring emails to more suit
web-based email services would be sensible for brands wishing to
reach this group.
Members of the Boomerang Boarders group are more likely
to send e-greetings so this is potentially a valid channel of
communication to investigate. E-greeting companies should
consider reaching out to these people where they can as they are
potentially valuable customers.
Examples created using Experian’s Mosaic segmentation tool combined with online intelligence platform, Hitwise.
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What does this mean for brands and businesses?
Different people have different preferences and a propensity to behave in different
ways. Understanding what certain groups are more likely to do and where they’re more
likely to do it is imperative for brands wanting to take a sophisticated approach to
interacting with specific groups and customer types.
Customer experience is crucial in modern marketing, for many it’s the key
battleground, and understanding more about your customers’ wants, needs and
desires is crucial in order to provide them with the service most suited to them.
Good customer experience fosters brand loyalty, retention and advocacy. Providing
the modern customer, who is extremely demanding, with the best possible experience
should be one of the main aims of every brand’s marketing strategy.
A full understanding of population trends and the forces behind those trends brings
opportunities for commercial organisation to make positive changes to their activity.
The location of outlets, product ranges and services best suited to a geographic
area and the best people and locations to market to, all depend on a thorough
understanding of customers and the ability to decipher different customer types.
This is why it’s important to have the most up to date data and know who your
customers are and how they behave across channels. Brands need to ensure
segmentation and analysis tools for online and offline are sophisticated enough to
keep abreast of changes and trends and need to use these tools to inform marketing
strategies in order to make marketing as effective and efficient as possible.
Key takeaways
• Understand who your customer are
• Focus on the quality and conversion of the traffic being driven to
your site
• Invest in the right segmentation and online intelligence tools
• Use insights to better focus marketing efforts to increase
efficiency and effectiveness
• Tailor marketing to suit customer preference
• Keep abreast of changes and trends in population
Experian Marketing Services is a leading global provider of consumer insights, targeting,
data quality and cross-channel marketing. We help organisations intelligently interact
with today’s empowered and hyper-connected consumers. By helping marketers identify
their best customers, find more of them, and then coordinate seamless and intelligent
interactions across the most appropriate channels, Experian Marketing Services’ clients
can deepen customer loyalty, strengthen brand advocacy and maximise profits.
For further information please contact us:
0845 234 0391
[email protected]
www.experian.co.uk/marketingservices
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