Finding Your True Audience

Finding Your True Audience 
Targeting the Right Customer at the Right Time with the Right Media 

http://emagine‐group.com  Experience Focused, Socially Active, Digitally Enabled

An online users sees more than 
1,800 ads per day, which is an 
increase of more than 250% 
since 2004. 


How often do you use the internet to research before you purchase? 


Which type of ads influence you more as a potential buyer? 


9 Need to Knows 
 Revenues are still relevant 
– Collect information about customers to establish how 
much cash money they bring to your table 
 Happiness is contagious 
– Focus on happy customers 
 Price sensitivity is NOT a good thing 
– Don’t make your market position about price 
– When Mickey Drexler took over a CEO of J Crew, he was 
looking for customers willing to pay more for well‐made 
clothing and increased revenue 170% in the first 5 years 


 The bigger the problems the better 
– The bigger the problem your brand can solve, the bigger 
the market response 
– In the early days of the internet, AOL went after people 
interested in getting online but not willing to do it alone 
– As a result, 30 million people signed up and they became 
4th on the list of events that shaped the first 25 years of 
the web 
 Be on the lookout for something new 
– Introducing new products and services can generate 
organic growth companies crave 
– Focus on your customers that are most interested in new 
innovations from your brand to generate bottom line 
growth 


 Out there advocating for your brand 
– The greater the level of influence a buyer has among their 
social networks and word of mouth marketing, the more a 
brand’s marketing ROI will benefit 
 A hub with lots of spokes 
– The more active and engaged a customer is with different 
social media, the more valuable they can be to your brand 
– Ford Motor Co. picked out 100 twenty‐something YouTube 
storytellers who’d developed a fan community of their 
own and gave them a Fiesta for 6 months 
– Each month they share their experiences with their 
communities via YouTube, Facebook, twitter and Flickr 
– Ford received 50,000 requests for information and sold 
10,000 units in the first 6 days of sales 


 Distinctive needs and wants 
– The more similar and predictable a target group’s needs 
and wants, the easier it is to develop compelling 
positioning and messaging 
 Meaningful to traditional and digital decision makers 
– Get a sense of how high‐value customers use traditional, 
digital and social media communications throughout the 
pre‐ and post‐purchase process 
– Understand how the like to interact with a brand within 
different communications channels 


What Is Equity? 
Building Customer Equity 


What is Customer Equity? 
 A firm is only as good as its customers think it will be the next 
time they do business with them 
 Customer Equity is made up of 3 parts 
– Value Equity – a customer’s objective evaluation of the 
brand’s offering  
– Brand Equity – a customer’s subjective view of the brand 
and its offerings 
– Retention Equity – a customer’s view of the strength of 
the relationship between them and the brand  


Value Equity 
 A customer’s objective assessment of the utility of a brand 
based on perceptions of what is given up for what is received 
 What drives value equity for the customer? 
– Quality – What is the value of the brand offerings?  
– Price – How attractive is the price?  
– Convenience – How easy is it to do business with the 
brand?  


Brand Equity 
 The customer’s subjective and intangible assessment of the 
intangible, above and beyond its objectively perceived value 
– This is determined by the brand’s marketing strategy, 
tactics and influence over the customer through life 
experiences and associations with the brand 
 What drives brand equity? 
– Building awareness and attractive customers 
– Building emotional connections with customers 
– Reminds customers to repurchase  


Retention Equity 
 The tendency of the customer to stick with a brand above and 
beyond the customer’s objective and subjective assessments 
of the brand 
– Focuses on the relationship between the customer and 
brand, based on actions taken by the brand and the 
customer to establish, build and maintain a relationship 
 What drives retention equity? 
– Loyalty programs (frequent purchases/rewards programs) 
– Special recognition and treatment programs 
– Affinity (emotional connection programs) 
– Community programs 
– Knowledge‐building programs (workshops and seminars) 


Audience targeting can identify the best 
consumers for a specific ad or campaign 
and can be used to effectively reach 
sales, acquisition and branding goals. 


The Ingredients of Targeting 
 What are people looking for 
– Search Engine information 
 Interests 
– Content of articles viewed 
 Where They Go 
– Pages, Sections, Sites 
 What They Say About Themselves 
– Income ranges, Gender, City 
 Tools They Use 
– Calculators, Configurations, 
Comparisons 
 Offline Data 
– Transactional, Affinity, 
Psychographics 


Audience Targeting 
Targeting: The process of identifying segments of similar users, and 
incorporating them into the ad delivery decision 

Behavioral Targeting: The process of identifying patterns of user 
interactions, and incorporating them into the ad delivery decision 

Interaction Recency Frequency


What is Behavioral Targeting? 
 A method used by online advertisers to increase the 
effectiveness of a campaign 
 Uses information collected about an individual’s web 
browsing behavior to select the advertisements to display to 
that individual 
 Allows for the displaying of ads that are more relevant to the 
interests of the individual viewing a particular page 
 Because of this, it is believed that this type of targeting helps 
advertisers deliver their messages to the individuals most 
likely to be influenced by them 


How Behavioral Targeting Works 
Tag  Segmentation  Behavioral Targeting 


Why Does It Work? 
 Reach and identify qualified audiences based on their 
behaviors, interests and habits 
 Target relevant ads to engaged consumers throughout their 
purchasing cycle 
 Improve online advertising performance, reduce waste and 
increase ROI 


At emagine, we work with 2 
internationally respected firms 
for audience segmentation. 


VisualDNA 


The VisualDNA Customer Profile 


AudienceScience 


The AudienceScience Customer Profile 


Understanding Market Segmentation 
Learning How to Break Down Your Customer’s Into Groups 


Market segmentation is the process that 
companies use to divide large markets into 
small markets that can be reached more 
efficiently and effectively with products and 
services that match their unique needs 


Market Segmentation 


Market Segmentation 
Divides the market  Divides the market 
into different  into groups based on 
geographical units  variables such as 
such as nations,  age, gender, family 
regions, states,  Geographic  Demographic  size, income, 
counties, or cities  segmentation  segmentation  occupation and 
education 

Divides buyers into  Divides buyers into 
different groups  Psychographic  Behavioral  groups based on 
based on social class,  segmentation  segmentation  their knowledge, 
lifestyle, or  attitudes, uses, or 
personality traits  responses to a 
product 


How Do We Market To These Segments? 


Marketing Segmentation 
New vs.   4 Key  8 Major  16 Visitor 
All 
Returning  Products  Markets  Personas 

100% of visitors  100% of visitors 

1 segment = all   16 segments = all  


Market Targeting 
Mass  Segmented  Niche  Local/Individual 

Undifferentiated  Differentiated  Concentrated 
MicroMarketing 
Marketing  Marketing  Marketing 

Targets the  Targets several  Targets a small  Practice of 
whole market  different market  share of a large  tailoring 
with one offer  segments and  market  products and 
designs separate  marketing 
Mass marketing  offers for each to  Limited company  programs to suit 
achieve higher  resources  the tastes of 
Focuses on  sales and  specific 
common needs  stronger position  Knowledge of  individuals and 
rather than  the market  locations 
what’s different 
More effective 
and efficient 


Mapping our Data to Sellable Segments 

View content 
Interest 
View product information 
Life‐stage 
View ad 
Lifestyle 
Click on ad 
Intent 
Purchase something 
Behavior 
Search for something 
Demography 
Attend an event 
Provide information about themselves 


Mapping our Data to Sellable Segments 

Interest 
Life‐stage 
Active Travelers 
Lifestyle 
Intent 
Affluents 
Behavior 
Demography 


Understanding How Targeting Works 
General Testing   Segment Testing   Targeting  Profile Targeting 


Results from Mass Marketing 
Price 

Direct Sales 

Fill by ad networks 

Volume 


Results from Market Segmentation 
Price 

Direct Sales 

Audience‐based selling 
New Revenue 


Volume 


Results from Audience Targeting 
Price 

Direct Sales 

Audience‐based selling 

New 
Revenue 

Volume 


Know Your Customer Types 


The Resistant Customer 
 Mindset: Hates your company and 
holds deep resentment for your brand 
 Behavior: 
– Will spread negative word of 
mouth wherever possible 
– Took their experience with your 
brand personally and is looking for 
revenge 
– Will defect to your competitor first 
chance they get 
 Loyalty: Zero 
 Possibility of Defection: Extremely High 
(you can’t save this group) 


The Indifferent Customer 
 Mindset: Sees your company/product/
service as nothing more than a 
commodity 
 Behavior 
– Will always try to get lower prices 
to the point of near zero margin 
– They will promise volume or future 
business, but see little unique 
value in your offering 
– Always willing to walk away from 
the sale because they have other 
options available 
 Loyalty: One 
 Possibility for Defection: Very High 


The Acceptant Customer 
 Mindset: Expects your customer to 
provide the maximum of what’s asked 
and nothing more 
 Behavior: 
– Doesn’t think of your brand until 
absolutely necessary 
– Comes to you because you have 
become a habit or more 
convenient choice 
– Maybe aware of other, better 
options, but simply hasn’t made 
the effort to pursue them 
 Loyalty: Two 
 Possibility for Defection: High 
– Customer expectations can 
outpace what you provide 


The Preferential Customer 
 Mindset: Has grown to like your brand 
and tends to understand the unique 
value that you provide 
 Behavior: 
– Most of us make the mistake of 
making this customer type the top 
of our customer pyramid 
– When given a choice, they will 
probably continue to use your 
brand 
– Very aware of industry trends and 
can surprise by defecting if you 
have not given them benefits or 
raised the bar on service or 
innovation 
 Loyalty: Three 
 Possibility for Defection: Somewhat 
High 


The Evangelist  
 Mindset: The pinnacle of the customer 
relationship and would buy anything 
you offer 
 Behavior: 
– They tell everyone they know 
about your company 
– Mentions how satisfied they are 
even in casual conversations 
– Your brand has become part of 
their life 
– Finds personal meaning with your 
brand 
– Worth their weight in gold because 
they do more to grow your 
business than any ad campaign 
 Loyalty: Four 
 Possibility for Defection: None 


Calculating Customer Lifetime Value 
What is a customer worth? 


Customer Lifetime Value? 
 Customer Lifetime Value (CLV) is how we determine what a 
customer/client is worth over the lifetime of their relationship 
with the brand 
 This is difficult to calculate for consumer goods, but very easy 
for service based and financial services brands 
 What we are looking to understand is which customers are 
worth keeping as clients and which should be let go to 
increase profitability 
 This may seem like a dirty way to determine how much work 
you do to maintain client relationships but it is a requirement 


New Customer Valuation 


Finding Your True Audience

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