This is a paraphrased report, quotes indicate what was actually said.
Over half of U.S. businesses spend over $1,000 without any predefined customer acquisition goals. Platform providers, agencies and advertisers can be part of the solution, according to AdMall CEO C. Lee Smith who spoke today at BIA/Kelsey NATIONAL.
Franchises, according to BIA/Kelsey, spend 27 percent more than other SMBs. It’s better to reach people who count than to count how many people you reach. This kind of targeting is possible with digital marketing. So, define your audience to get started in ad improvements.
Franchise marketers should consider using Purchase Intent as a defining criteria for audiences. Not everyone is going to buy — one may not read a boating magazine because the want to buy a boat. For example, in furniture, audiences often are looking for inspiration, which doesn’t have to be the cheapest furniture. Thirty-seven percent of furniture buyers have Pinterest accounts. Two-thirds have a particular store in mind before they start surfing — so branding is critical.
61 percent of shoppers showroom when shopping at furniture stores, looking for a better price.
Another type of buying intent: Heavy Frequency Purchasers spend 5x more on fast-food. Their digital use revolves around convenient sharing with friends and finding new things to try. Frequent fast-food eaters are 3.5x more likely to use FourSquare, 88 percent more likely to take action on a promotional email, and 37 percent will try new things they discover through social. They are enrolled in 23 percent more loyalty programs as the typical American.
Purchase Intent: Personal Goals — or “aspirational.” Example: People ready to move. They click to call 74 percent more often and 50 percent to look for repair services online. They are 82 percent more likely to have used HomeAdvisor.
Other critical purchase intent: B2B planned purchases and dissatisfied customers (cable customers top this list).
How would you redefine your audience based on purchase intent, then drill in and learn everything about them? Do a few things well, be the go-to source on your chosen topics/targets. Aim for where your target audience is, don’t reach everywhere.
You don’t need big data, you need big insight. Connect your brand to the customer’s hears and minds, it’s not all about reach.
Don’t let your franchisees’ fights with local competitors interfere with your national brand goals. Tell franchisees why they need to aim above the fray they think they are fighting.
“New doesn’t always mean better.” Use existing media where it works.
Now to Q&A:
Rick Ducey of BIA/Kelsey: You described fast-food users as active, but are they brand loyal?
Smith: It could be a bit of both. If they are in many loyalty programs, they will choose, but they will choose based on communication from those brands.
Ducey: On the moving marketing, there is clustering data to exploit in selling related services.
Smith: When you reserve a U-Haul truck, you could also pay for a repairman to fix a hole in the house you are leaving, so it’s a great opportunity to grow the customer relationships.