Behavioral Marketing Strategy – How to Get People Clicking
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The other day I was grocery shopping at the WholeFoods. Headphones one, collecting my avocado and blueberry stash when my Enjoy the Ride from Morcheeba was interrupted by YouTube commercial from WholeFoods. Their Pinto beans were on discount and myself in quite of shock because – Pinto beans sound like a good idea for a meal that I’m gonna cook later that week.
The dark magic of behavioral marketing caught me in my real life using my Google location and my history search on their website. While its a bit scary how much marketers know of us, it is one of the finest (and most accurate) examples that I’ve seen in a while. Let’s dig in the science of behavioral marketing – what it is, numbers behind it, how to implement it and best behavioral marketing examples on the market.
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What is Behavioral Marketing?
Personalized or behavioral marketing, most simply explained, is marketing based on the actual behaviors of your targeted audience on the web sites. Instead of throwing a bunch of ads, e-mails and messages to all of your consumers simultaneously (and spending twice as much of your budget), you target precisely those who are interested in buying exactly what you sell. Furthermore, behavioral marketing is going beyond the platform and placement and following user behavior.
Behavioral marketing ads target consumers sorted in predefined segments and categories, compiled from clickstream data and IP information.
What is Contextual Marketing?
Delivery of a relevant message based on a context (platform and content), regardless of the media form is what makes the core of contextual marketing. Behavioral marketers, therefore, serve ads based on the Web page’s content, to the specifically targeted audience with high chance to convert.
Ads delivered through Google’s AdSense or Overture’s Content Match are great examples of contextual marketing at work! They both place text ads on contextually relevant Web pages.
Behavioral Marketing Statistics
According to Invesp, 53% of online shoppers think personalization is valuable, 45% prefer shopping with stores that give personalized recommendations, and 57% wouldn’t mind giving their personal info if they benefited from it.
Online marketing allows you to track and measure what your visitors are doing from the moment they landed on your website to the point of purchase. Using analytics, user recordings, heatmaps, and other helpful tools, you can reveal much of the actual behaviors of your consumers. When put in the right perspective, the vast amount of information can easily be turned into most effective marketing campaigns.
Picture 1. Online Shopping Personalization – Statistics and Trends
What Behaviors to Track?
Keep in mind that not all the data is valuable and equal in the analytics hierarchy to track. Often, marketers stuck in the analysis of too many parameters, re-thinking the micro-behaviors and missing the bigger picture.
Here is the list of the most common behaviors marketers take as parameters:
- Past purchases: Increase loyalty and improve the user experience of your customers by providing them with better product recommendations. Send them a discount using e-mail retargeting and remind them that they still have products waiting in their cart.
- Device: Not all content is consumed equally on every device. Depending on your niche, target audience and your content, you can adapt your marketing materials (video, e-books, guides, blogs, landing pages) for specific devices or groups of it.
- Clicks: Create specific, accurate and relevant messages to reach your targeted audiences and give them what they want exactly when they want it. As a part of the omnichannel experience, mixed and matched with collected data, you can track where your clicks are coming from, where on-site people are spending more time and what CTAs worked best for them.
- IP and location: Location of your users can easily transfer their digital habits to ads that follow them around the city.
Behavioral Marketing Examples and Strategy
E-mail Retargeting Campaigns
E-commerce companies that struggle with shopping cart abandonment rate, which for online retailers varies between 60% and 80% with an average of 67.91%, are the first to benefit from targeted e-mail campaigns for their online shoppers.
In this scenario, using a discount as an extra push towards the shopping decision of your consumers is likely to work.
According to AdRoll, retargeting emails with specific messages have an average open rate of 60% and a click-through rate of 15%. To put it in the bigger e-mail marketing perspective, that is 3.5x better than the average open rate for the e-commerce industry in the US, and 6x times better than the average click-through rate.
Picture 2. Hubspot e-mail retargeting campaign
Set up a retention e-mail campaign to users who have been inactive for a long time of your e-commerce site or for the users who have unsubscribed from your service.
Picture 3. Birchbox retention e-mail campaign
Increase your Sales with Suggested Products
According to an Infosys report, 74% of customers feel frustrated when brands don’t provide them with individualized website content. With 63% of worldwide consumers being annoyed by seeing generic advertising messages repeatedly, it’s easy to connect the marketing strategy dots.
Consumers want personalized content and with all the tools marketers have at disposal, it is becoming an essential marketing strategy for brands that want to perform better and improve user experience. Personalized shopping experience provided by JD Sports resulted in a 10% increase in the conversion rate.
They recommended products based on the intent and preferences of each visitor showing the most relevant recommendation type and products in real time. JD Sports gained this info from the page types their customers visited and the product categories they interacted with the most. They used three types of personalizations:
- “What customers ultimately buy” recommendation
- Rule-based cross-sell personalized recommendation
- Auto-generated product recommendations
Picture 4. JD Sports Increased conversion rate for 10%
Customize messaging by location
Another great example of personalized marketing was done by lifecycle engagement platform Appboy. Knowing that their audience is mobile first, they Appboy partnered with location data company PlaceIQ to increase mobile engagement for retail brand Urban Outfitters.
The idea behind the campaign was to help Urban Outfitters better contextualize its marketing messaging. They used real-world behavior to support smarter delivery of in-app messages which brought the Urban Outfitters boost of customer conversions by 75% and increased related revenue by 146%
Picture 5. Urban Outfitters increased mobile engagement using behavior marketing
Behavior Marketing Delivers Content People Want to Click
Consumers are being more and more demanding over time, brands have to dig deep into data and use their backend insights to learn more about their behaviors. From optimizing the on-site user experience and applying the right set of metrics to better understand what customers behavior samples are, personalized marketing is essential for brands that want to stand out of the crowd.
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