How Your Company Can Target Like the Online World But Earn Much Higher Response Rates
Does your company run ads on TV? Viewers can skip them with DVR (or the old-fashioned clicker).
Do you run direct mail? A good response rate is 2%. The rest get tossed in the garbage.
Do you run online ads? Assuming people don’t block your ads which is becoming easier every day, the response rates online are getting worse. Especially from an ROI perspective because the technology to support it gets increasingly complex the more you try to do.
This isn’t to say you shouldn’t utilize those forms of media for your advertising. Each has its share of advantages.
But wouldn’t you prefer to just have it all?
What if you could? What if it were possible to target like the online world, get in their faces like direct mail, and be impossible to turn away from like a good TV ad – all at the same time? Wouldn’t you want that?
You can have it with the rooftop targeting capabilities combined with next level front door marketing.
Take a moment by reading this and surprise yourself with how technology has made it possible for front door marketing to target just as well as the online world, while delivering far higher response rates.
Audience Targeting Capabilities of Front Door Marketing
The goal of audience targeting is simple: Get data-enriched recommendations for which block groups in which neighborhoods in which cities to target, and possibly even which homes are more likely to buy your product or service. Then, create a targeted front door marketing campaign.
Front door hangers get seen. They don’t get blocked, tossed, or skipped. And with hyper-targeting of the sort you’re about to see, the right people will be seeing them. That means far higher response rates and greater ROI. Let’s get into the details. It begins with consumer data.
Front door marketers like Power Direct get consumer data from many different sources. Here are the three largest:
- Census data
- Consumer buying power data
- Previous and current customer data
What’s possible today in terms of audience targeting goes way beyond zip codes and drawing circles around your stores. Compared to what’s possible today, that’s only a shade above stone axes and grunting.
Here are a few things you can do with the consumer data now available.
1) Create customized maps and models showing where your most likely customers live
Combined with Power Direct’s proprietary software, MapInfo allows you to map out specific homes and streets based on demographic data obtained from other sources.
MapInfo allows you to visualize, analyze, edit, interpret, and understand the data to search for patterns and trends.
Rather than spending precious ad dollars sending content to every street and every home in a neighborhood whether they will have any interest in your product or not, you only invest in marketing to homes that meet your customized criteria.
2) Identify the block group boundaries with higher percentages of consumers more likely to buy your product or service
Using census and other targeting data, combined with MapInfo and Post Locate, you can narrow cities down to neighborhoods, and neighborhoods down to ‘block groups.’
A block group consists of about 450 households. You can choose which ones to market to based on the percentages of features you’re looking to capitalize on, such as percentage of serviceable homes (critical for telecom), active customers you already have, and those using services like internet and home security, including the average amount they spend per month.
You can even determine which block groups are more likely to upgrade, and which are more likely to cancel service, what we call the ‘churn index.’
3) Competitive analysis of your own stores or your competitors’ stores
Once you’ve identified neighborhoods and block groups, you can find out which ones have more customers with your ideal demographics who are buying from your competitors who may be just as likely to buy from you.
You can then create an effective front door campaign to win their business, since you also have a store within a reasonable distance.
And you can also prevent your own stores from stealing customers from your other stores using the same kind of data.
4) Demographic targeting like nothing you’ve seen
You can target homes narrowed down with over 4000 variables. Yes, four thousand.
Other than the obvious ones like ethnicity and income levels, some examples include:
- 11 marital status categories (like males never married, females widowed, etc)
- 9 categories of educational attainment
- Number of vehicles owned
- 7 types of employment (self-employed, state government, nonprofit, etc)
- 7 modes of transportation they use to get to work
- 15 ranges of home values
- 22 types of occupations
- Travel time to work
There are a lot more, but you’re starting to get the idea.
One of the consumer data services we use, called PRIZM, categorizes people in groups with similar traits that help you develop targeted messaging, within the categories above.
Some examples are ‘young and wireless’, ‘suburban spenders’, ‘offline seniors’, and ‘early adopting elite’.
Put all this together, and you’re just beginning to see the potential.
For example, you can target offline seniors with home values above $400,000 who own two vehicles, spend $100 per month on cable, $80 on power, and are still married.
How do zip codes and circles on your map look now? Grunt, grunt.
Applying Household Audience Targeting to Campaign Creation
Picture two national pizza chains, and both want to spend the same amount of money based on their understanding of front door marketing.
One chain buys 500,000 paper flyers and hangs them on doorknobs across big cities in America. The other chain buys 250,000 front door hangers of the more attention-getting variety but does hyper-audience targeting using the full range of demographic, customer, and geo-coded location data that’s available now.
If the first pizza chain gets a 5% response, they’ll feel pretty good about themselves, considering that 2% conversion rates are good in direct mail. 5% of 500,000 is 25,000 buyers. That’s pretty good.
But because the second pizza chain can target households of specific demographics who spend over $50 per month on pizza, rather than just any random home, their higher quality door hangers only get placed on homes far more likely to buy.
Their door hanger campaign gets a 20% response rate, which equates to 50,000 buyers.
They spent the same amount on their campaigns, but the audience targeting produced a larger ROI even though they delivered door hangers to fewer consumers.
Even more remarkable, when you add your own customer buying profile data into this mix, the potential for explosive competitive analysis, creation of lookalike audiences (just like online!), new store marketing, and holiday campaigns go through the roof – including the roofs you can see on your model from MapInfo.
The Glue That Makes Ultra Audience Targeting Possible
PRIZM, MapInfo, census data, your own customer data – it’s all great stuff. But it’s also all in different places.
To bring all this data together takes something extra special. And that’s why Power Direct wrote our own proprietary software to do just that. Our software streamlines data processing from these and other sources to help create the most customized target audience possible for your front door media campaign.
And, our software makes it possible to do in just a couple hours what would normally take days or even weeks.
Want to leverage the power of online targeting, but use it in a far more effective front door media campaign?
Click the button below to talk to a front door marketing specialist.