Dave Campbell, Vice President of Conversion Strategy, Bounce Exchange, explored behavioral marketing and its impact on today’s businesses during a Thought Leadership Spotlight to Argyle’s CMO membership at the 2016 Chief Marketing Officer Leadership Forum: Spotlight on Retail and Consumer Goods & Services in New York on April 13. In his presentation, “Advanced Behavioral Marketing,” Campbell examined how CMOs can leverage behavioral marketing to gain a competitive advantage over their rivals.
Advanced behavioral marketing is “vital” for today’s CMOs, according to Campbell. It could become ubiquitous over the next few years, particularly as CMOs and other business leaders explore ways to bolster their customer interactions.
Campbell pointed out there are two ways that many CMOs try to drive more business:
- Searching for innovative tools to help bring more traffic to their websites.
- Examining ways to increase the revenue per web session.
Today, there is a big disparity in marketing spend. The majority of marketers are committing significant resources to driving traffic to their websites. Comparatively, few marketers are focused on conversions, which can be problematic.
“If you’re going to spend money, you have to make sure that money is being spent intelligently,” Campbell noted. “If you’re going to put even a dollar toward conversion rate optimization … you need to make sure that dollar is going to perform for you. And without a blueprint, this is a meticulous process.”
Adding knowledgeable specialists who possess the skills and know-how to drive performance can help a business boost its conversion rates. In addition, these specialists can empower a company to learn about its customers and build a long-term strategy to boost its conversions.
So what is the blueprint for behavioral marketing? Campbell pointed out aggressive retargeting and triggered emails are frequently used to connect with consumers.
Aggressive retargeting involves promoting products and services that a consumer may have added to his or her online shopping cart. Meanwhile, triggered emails further promote offerings that an online shopper may have added to his or her cart but failed to purchase.
“If you’re going to put even a dollar toward conversion rate optimization … you need to make sure that dollar is going to perform for you. And without a blueprint, this is a meticulous process.”
Although these marketing techniques enable businesses to promote their products and services to customers who may have been interested in them in the past, they offer limited value for today’s CMOs. And in some cases, repeatedly promoting the same products and services that a consumer has already viewed may lead a shopper to tune out these messages altogether, damaging a brand’s reputation.
On the other hand, advanced behavioral marketing empowers a business to make the most of the customer data at its disposal. It requires a company to go beyond basic insights from a customer and work with its clients to ensure they receive consistent support.
Looking at metrics such as bounce rate and time on site enables a company to better understand its customers’ behaviors. But in some cases, these metrics provide only a limited glimpse into consumers’ thoughts and feelings about a company.
Behavioral marketing tools empower a business to make more informed decisions based on real-time data from its customers. As a result, a company can use these tools to optimize its marketing spend consistently.
“If you’re thinking about growing your business, you need to think about where your money is being spent,” Campbell said.
Although many companies focus on bounce rate, this figure can be misleading at times.
“If you’re thinking about growing your business, you need to think about where your money is being spent.”
As such, Campbell suggested that businesses “let it go” when it comes to committing substantial resources to improve its bounce rate.
“For the bounce rate, we say let these people go,” he said. “There is very low probability that they are going to convert, and actively spending money and optimizing initiatives for them is not going to move the needle.”
People who are spending less than 2 minutes on a website remain “relatively unproductive” as well, Campbell said. And like frequent bouncers, he recommended that CMOs focus their attention on customers who are spending extended periods of time on their websites.
“The focus with behavioral marketing should be on the traffic that should be buying,” Campbell noted. “And for this other traffic, let’s consolidate spend.”
Ultimately, behavioral marketing requires a business to focus on customers who spend more than just a few minutes on its website. These customers deliver actionable data that a company can use to tailor its marketing efforts and optimize its client interactions.
And lastly, CMOs should prioritize the customers who are actively connecting with their businesses when they evaluate their behavioral marketing investments.
Rather than dedicate substantial time and funds to market products and services to consumers who fail to stay on a website for more than a few minutes, a business should explore ways to further its partnerships with those who show clear interest in its offerings. By doing so, a business can connect with interested consumers, use their feedback to find ways to improve its brand reputation and optimize its marketing spend as well.
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