In today’s world, marketers are using big data to buy very personal information about their customers. Companies are tracking your online activity and buying habits to get to know you, almost better that you know yourself. They know your interests, lifestyles, beliefs and what you like to buy, where you
like to shop, and even whether you like to use cash, debit, or credit. This information is used for “hyper-targeting” ads and offers that are personalized and customized just for you. But have marketers gone too far?
The logic behind hyper-targeting consumers is based on sound reasoning. Every company’s success relies on their vital few, the roughly 20 percent of customers that generate 80 percent of their business. Therefore, the vital few are your most loyal repeat customers. If you can attract more customers that look like these people, you will grow your business faster than you would if you cast a wide net. Think along the lines of those people who identify themselves as a Chevy person, a Coke drinker, or even an art lover.
Consequently, with hyper-targeting, a company can focus specifically on those people who define themselves by the products they use, the things they do, and their interests. A marketer can address a buyer’s specific emotional needs, other brands they identify with, and their demographics. Moreover,
hyper-targeting allows you to differentiate between individuals at every stage of the customer life-cycle (target, prospect, lead, and existing customer) and craft personalized marketing specific to those people. That said, consider the problem with Facebook and “fake news.” Originally, Facebook’s news feed showed you all your friend’s posts in chronological order. Over time, the social media platform has developed algorithms that learned your interests, what you want to see, who you most interact with, and which posts you are most likely to engage. Today, your news feed is weighted to reflect your beliefs, interests, and lifestyle. It has created a bubble in which different points of view don’t often get in. Fake news was able to take hold because Facebook amplifies our own preconceived notions and ideology.
Why is this revelation important to hyper-targeting and your marketing? When you target only the perfect customer, there is a potential for ignoring the wider pool of potential customers. If you target only those who are absolutely in the market for your products and services, no one else is discovering your business. Essentially, your marketing will make you invisible. While it is true that marketing works better if you target those most likely to buy, a crucial element is creating the right ad mix to ensure greater brand reach and recognition. Video can make that happen.
Consider for a moment Budweiser’s long history of successful Super Bowl commercials. Anheuser-Busch could spend all their time and effort creating advertising specifically targeting the ideal beer drinker. Instead, they create video commercials that have been fun, funny, entertaining, emotional, and
inspiring. Every Monday after the Super Bowl, everyone is talking about Budweiser’s 30-second commercials. The net effect is that Budweiser has brand appeal and recognition well beyond their ideal consumer.
What haven’t we covered yet that is important to you? If you would like to talk about the problem with hyper-targeting customers, or other related topics, please contact us.