When working on a national campaign for a major retailer, it’s important not to lose sight of how valuable localizing that campaign is. A product can appeal to a host of different audiences for a variety of reasons, and both of these factors can change dramatically based on where the potential customers live.
Advances in AI, targeting capabilities and location data from mobile devices allow marketers to target in a whole new way, opening up new possibilities to get hyper specific. Location data allows marketers to target not only to where a user lives, but also where they’ve recently visited, where they’re currently traveling, and even their exact location in the moment.
Citrus Magic, a natural air freshener company, approached my team (at KPItarge) looking to increase brand recognition, drive foot traffic and boost in-store sales. By leveraging innovative data analytic techniques, we were able to increase brand exposure and provide an in-store sales lift. While it’s not a one-size-fits-all approach, we believe that other companies looking to achieve similar goals can learn from our tactics.
The first step to hyper-targeting several distinct audiences was identifying the three strongest personas. We went well beyond the typical demographics of age and gender to gain a deeper understanding of exactly who our core audience and potential customer was, and how likely they were to purchase an air freshener from our client.
The three strongest personas we identified were: tech-savvy food and travel enthusiasts (who were 24x more likely to convert); working moms who shop for home goods (17x more likely to convert); and pet-owning females (16x more likely to convert).
We did a deep dive to explore the primary attributes of all three personas in order to identify opportunities to expose the client to these key groups in a way that resonated with them.
Once these personas were identified, we hyper-targeted them through programmatic advertising and by leveraging app data. We got even more granular by adding a geolocation layer. This allowed us to target each persona in a precise area, specifically when they were within half a mile of a store that sells our client’s product.
Using geolocation technology allowed us to put our client’s ads in front of the exact audiences we wanted to target, while they were in stores that sold the product, during times where they were likely to be making purchasing decisions.
With a focus on data and exhaustive research, we were able to clearly identify personas, and deliver the right message to the right persona at the right time, furthering brand awareness and the consumer’s ability to make a purchasing decision.
AI and machine learning allowed us to see what areas of the country were converting better and allocate more of the ad spend in those places to increase the ROI on every dollar spent, in real-time. This made each dollar spent extremely deliberate and increased the opportunity to convert a consumer successfully.
By being extremely strategic and employing several different targeting methods, we were able to achieve a 50% decline in CPA and a 39% increase in conversions for our client. This resulted in serving up over 39 million impressions during the first four months of the campaign, all of which were for customers within a mile of each retail location.
Being able to get our client’s CPA under $10 is something that we are incredibly proud of and shows how vital using multiple, highly-specific techniques are to building business and increasing brand awareness.
While this strategy can absolutely benefit other brands, it’s a tactic that must be specifically tailored. Every brand is going to be different for a number of reasons (who their target audience is, what their price point is), so you need to be prepared to put in the work and understand deeply who you want to go after and what you want to accomplish.
Although technology directly contributed to the success of this particular campaign, it’s not something you can just set and forget. This approach requires constant attention and nurturing in order to achieve your goal.
Despite not personally pulling levers or actively comparing the success of one store to another, you need to be very active in monitoring and supporting the technology in order to achieve the desired effect.
Mike Rowan is the Founder of KPItarget, an agency that helps brands meet their objectives through personalized data & marketing strategies.
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