Companies that do not target their marketing efforts to individual customers and their behaviors are missing out in a big way, new research has found.
Businesses that have been able to target customers based on customer behavior report a number of benefits, including higher return on investment and increased revenues. Business-to-consumer businesses attribute 26 percent of their revenues to behavioral marketing programs, the researchers found.
Additionally, the researchers found that customers were more loyal when marketers target them with specific actions that are linked to their behaviors. However, despite those benefits, 45 percent of companies are actively collecting and organizing data for marketing use.
"While marketers have come a long way in automating their efforts, not all are using marketing automation at its full potential and incorporating buyer behavior into their campaigns in order to deliver the most personal and engaging customer experiences possible," said Bryan Brown, director of product strategy Silverpop, which commissioned the research. "Data is the fuel that powers today's digital marketing campaigns and no insight is more valuable than what buyers tell you based on the actions they take. By capturing and then quickly acting on this behavioral data, marketers can form very rewarding individual relationships that lead to revenue and a deep sense of loyalty that can last a lifetime."
Lori Wizdo, a principal analyst at Forrester Research, which conducted the research, says the best way for companies to reach customers with personalized messages is to automate their marketing efforts.
"Marketing automation captures buyer behavior – the greatest untapped asset that marketers have," Wizdo said in an October 2012 blog post. "Marketing automation lets us know which specific content buyers are consuming. Marketing automation tells us where customers are finding our content. Marketing automation tells us what they do next. With this data, and the knowledge it drives, marketers can provide targeted content and offers, which serve to both improve buyer engagement and increase conversion rates."
The research was based on the responses of 157 marketing professionals in the United States.