Micromarketing

4 Key excerpts on "Micromarketing"

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  eBook - ePub

  HBR's 10 Must Reads for Sales and Marketing Collection (5 Books)

  • Harvard Business Review(Author)
  • 2020(Publication Date)
  • Harvard Business Review Press

    (Publisher)

  Consider the case of an Asian telecommunications company that found through a micromarket analysis that 20% of its marketing budget was being squandered in markets with the lowest lifetime customer value. The firm shifted these funds to its most lucrative markets, where two-thirds of the opportunity lay. Marketing then partnered with sales to reset customer-acquisition goals at the micromarket level, on the basis of each market’s potential; previously, the goals had been uniform across markets. In the past, when marketing opaquely set targets, sales would treat them skeptically and try to lower them; but under the new micromarket strategy, marketing collaborated with sales to set targets in a transparent way. Far from pushing back on targets, sales sought quotas 10% higher than those of the previous year—and met them.

  Using Big Data to Target Individual Prospects

  MICROMARKET ANALYSES ARE POWERFUL TOOLS for identifying granular growth opportunities and promising sales areas overlooked by competitors, but knowing which accounts within each micromarket are the best prospects turns a broad target into a narrow bull’s-eye.

  To tailor offers, communications, and pricing, companies must seek data on potential customers’ specific characteristics, such as purchase history and service experience, satisfaction with offerings, and actual use patterns. For example, an agricultural equipment manufacturer that had divided its sales regions into micromarkets realized that its sales teams had relatively little insight into individual end users’ needs other than what they gleaned from focus groups, which often included “friendly” customers. The sales teams set out to collect and combine large data sets from partners about the ordering patterns of individuals and groups of customers and their geographies and then developed hypotheses about purchasing behavior for each peer group.

  Building on its success in exploiting purchasing data, the company piloted a more audacious initiative that used remote sensing data to determine individual farmers’ activities. This provided the insights for sales programs tailored for individual farmers according to the types of crops they had under cultivation. This required sophisticated analytics, but the payoff was significant.

  Some B2B firms use social media analytics to create highly targeted lead lists. One tech company, for example, identified keywords or search terms that signaled sales opportunities (for example, queries about how to use specific products or applications). Data scientists tracked IT managers using the keywords on Twitter, Quora, LinkedIn, and Facebook in real time and determined their location (using either IP address or public mobile phone location data). The location data was matched with internal data to place the people at specific companies. Those leads were then sent to the reps with a simplified set of sales insights related to the specific questions posted on social media. Sales reps converted these solid leads almost 80% of the time.

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  eBook - ePub

  Marketing that Moves People

  How real estate agents can build a brand, find fans, land leads, and communicate convincingly

  • Shelley Zavitz(Author)
  • 2022(Publication Date)
  • Harriman House

    (Publisher)

  The devil is in the detail, as they say. If the phrase ‘one size fits all’ was actually true, the phone lines of Amazon wouldn’t be flooded with complaints, Nike wouldn’t have 1,500 design departments dedicated to each sport, and I wouldn’t own 14 awkwardly-fitting baseball caps.

  You would be hard-pressed to find any high-functioning company that offers a service that appeals to every single person in the world perfectly. It’s impossible. What’s true of the human race is that the heaven of one is hell to another.

  Micro marketing means to concentrate your resources and marketing on reaching a select group of people. You’ve probably heard the term ‘niche marketing’. It’s one of the most important things to understand and implement in your marketing strategy so let’s spend some time on it.

  Niche marketing means to choose a group of like-minded, like-habited, sometimes geographically-linked people, and deliver a service or product based on their wants and needs. (An overly simplified explanation, perhaps, but that is generally what it is.)

  It’s the secret to constructing a sustainable campaign. Committing to one segment or group of people will help you thrive in future years. The reasons you want to start niche marketing are to:

  1. Create deeper engagements. Deeper means more committed and ready to buy or sell.
  2. Receive real feedback that enables you to refine your systems.
  3. Receive real information that offers insight on how to prepare for the future.
  4. Get results based on your budget.
  5. Create high-value clients.
  6. Create a personalized experience.
  7. Receive praise from clients who feel seen by you and thereby refer you.

  This is why defining the target market was so important first. Now, not only are you going to know the wants and needs of your market, you are going to become the pro of all things related to it.

  The goal is to have your brand become synonymous with the solution of their wants and needs.

  Spend some time defining your macro and micro markets. Answer these questions:

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  Consumption Economics

  The New Rules of Tech

  • J. B. Wood, Todd Hewlin, Thomas Lah(Authors)
  • 2011(Publication Date)
  • Point B Inc

    (Publisher)

  We have already covered the key enablers of this capability in previous chapters. Micro-marketing is now possible because we can see what end users are doing and we can learn from it. We can learn how our products are being used by banks and how that differs from how they are being used by hospitals. And within a single bank, how does the CIO want the end users to use the product? What modules are most important? What functions are most important? And within individual job roles, what are the power users doing that is different from what the weaker users are doing? How do we elevate everyone to that higher level of adoption and value?

  Getting to this level of understanding about our product’s journey to high levels of consumption and value is going to become a new, central, and defining capability of tech marketing organizations. It will establish new rules, not just for the next generation of marketing, but also for sales and support.

  The second enabler of micro-marketing is our new ability to make offers to end customers inside the actual use of the product, or In-Product Upsell. When you search for a book on Amazon, they not only give you the information you asked for, they also say, “Customers who bought this item also bought _________.” This is called “offer management” and is powered by intelligent, real-time recommendation engines. As we said in Chapter Six , your R&D team has to build these and other advanced Consumption Innovation capabilities into your products. While the ability to do this online is relatively new, the basic idea has been around consumer marketing for years. Since the early 1990s, there has been academic research guiding grocery retailers on where to place products on the shelves.

  1

  Walmart has conducted research using technology that follows the movements of a shopper’s eye. They report that most shoppers fail to look at one-third to one-half of the brands on the shelf; shoppers look mostly at the products in the center of the shelf. In fact, shoppers look at the brands positioned in the center of the shelf nine times more than those placed in the corners.2

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  Tech Trends in Practice

  The 25 Technologies that are Driving the 4th Industrial Revolution

  • Bernard Marr(Author)
  • 2020(Publication Date)
  • Wiley

    (Publisher)

  TREND 23 Mass Personalization and Micro-Moments

  The One-Sentence Definition

  Mass personalization is about offering products and services at scale, but each uniquely tailored to our needs; micro-moments are the opportunities to respond to customer needs at an exact time when they need them.

  What Are Mass Personalization and Micro-Moments?

  Mass Personalization

  Targeted mass marketing was developed by direct mail businesses in the 1960s and 1970s, to enable customers to be segmented by age, geography, or income and offered products they are more likely to be interested in.

  Today, due to the internet, social media, and our always-connected society, more information is generated about who we are and what we do than ever before (see also Trend 4 on big data) – and all of this can be captured and analyzed by marketers and trend spotters.

  This means they can offer us products and services uniquely tailored to meet our individual needs in increasingly individual ways. From personalized email marketing to setting tariffs based on our level or volume of consumption, mass personalization is now used to drive higher sales, increased customer satisfaction, and, hopefully, improved retention.

  Online, data-driven mass personalization started out with determining a user’s geographical location from their IP address and directing them to a landing page serving their particular region. As the variety and volume of the data collected increase, so does the granularity with which customers can be segmented by age, interests, occupation, or many other factors that can be determined. This means that the picture the marketer has of each customer group becomes increasingly personal.

  The desire for personalization has become increasingly important to marketers as we consumers have become increasingly resilient towards, and resentful of, poorly targeted mass communications from people trying to sell us things. This is shown in research by Deloitte that states that 69% of us have unfollowed a brand on social media, closed an account, or cancelled a subscription due to annoying or irrelevant advertising.1

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