Types of marketing. Part 4
Neuromarketing
Neuromarketing is a complex of methods for studying the behavior of customers, the impact on it and emotional and behavioral reactions to this impact, using developments in the fields of marketing, cognitive psychology and neurophysiology.
The purpose of neuromarketing is to find ways to objectively determine consumer preferences without using subjective methods of obtaining information about them, as well as the formation of advertising messages in such a way as to persuade the consumer to buy before he realized them and developed his position.
Our thoughts, feelings, and actions are just the result of neural activity in the brain. Marketers reduce uncertainty in customer relationships using knowledge from neuroscience, because guessing the desires of consumers is based on assumptions.
Thanks to neuroscience, it is possible to predict the behavior of buyers and even manipulate their decisions. Previously, neuromarketing was considered a non-standard approach in marketing, but in recent years, neurobiological research has demonstrated the potential for marketers to work. For example, users rely on intuition when it comes to making risky decisions (such as buying from an unreliable online store), and banner ads in social networks attract more attention than in blogs.
Neuromarketing methods that are worth trying
Rejection of losses
For a person, the pain of loss is stronger than the pleasure of acquisition. Recall “Black Friday”: consumers are eager to make a purchase not only because of large discounts on goods, an important role is played by the idea that they will miss a bargain. The same neuromarketing method is used by Amazon when it lists products that will soon run out of stock.
Decision-making paralysis
It is difficult for consumers to make a purchase decision. The theory of paralysis explains this as follows: when we have a large selection of goods in front of us, the brain actively analyzes them and eventually freezes in inaction, afraid to make the wrong choice.
Usually employees provide services with a long list, and buyers get lost in front of the assortment. If you divide the list into groups that are easier to perceive, the result will surprise you.
Scientific approach in marketing
Let’s turn to statistics. Creative agency Fabrik provides the following data:
90% of purchase decisions are made by consumers subconsciously;
humans process visual effects 60,000 times faster than text;
marketers spend up to 70% of their time on attracting customers’ attention.
There is a study proving that advertising with people is more effective than advertising without them. Pay attention to the packaging of the Lay’s potato chips brand or Kinder Chocolate milk chocolate. The former often depict famous personalities, the latter — children.
We offer four ways to use neuroscience on the Internet:
1. Effective marketing requires emotions. When a brand evokes a certain emotional response from the audience, people will subconsciously remember you as soon as the right trigger is triggered. Visual neuroscience will be a useful assistant here.
2. Pay attention to the prices. Have you ever wondered why the prices for many products are of the type 299.99 or 399.90 rubles, and not 300 or 400? Our brain, on a subconscious level, sees such numbers not close in meaning, but completely different. And the lower the price seems, the better consumers treat it.
3. Motivate customers to share their impressions of cooperation with you. This way you will get new customers who already trust the brand thanks to the advice of loved ones. Positive reviews, reviews and word of mouth will tell more about the product than any advertising.
4. Different people choose different things. It’s convenient to think of consumers as one big community, but different people react differently to the same service or product. Each person chooses what suits his interests and brings maximum benefit. Think about how to benefit from the preferences, emotions and moods of different consumers in a marketing strategy.
How to Use Neuroscience when Creating Content
You will work with the client at a deeper level if, when developing a content marketing strategy, take into account the psychological characteristics of buyers.
First, pay attention to the internal needs of people. Do you know at least one person who does not want to be satisfied and happy? Content that evokes positive emotions in consumers is a great success.
Secondly, become an old acquaintance for buyers. When we see something familiar and endearing, the brain produces dopamine, causing pleasure. Therefore, use colors, fonts and graphics in the content that remind you of a pleasant acquaintance.
Third, give up the difficulties. The content should be understandable. Everything that the brain considers difficult turns into an unpleasant task. Simplify your text with subheadings, markers, and lists. As a result, it will be convenient to read and will be better absorbed by the visual part of the brain.
Fourth, surprise the reader. Keep in mind the novelty when developing content. Do not turn the same words and phrases in a new way. Add images to articles and experiment with formats.
According to HubSpot, more than 92% of marketers consider video an important part of their marketing strategy. This is the highest figure since 2015.
Resume
Neuromarketing has come a long way over the past 15 years. Neuroscience research has proven to be a powerful tool in understanding the brain and human behavior. We have given examples of how to use visual neuroscience to increase brand awareness and emotions to awaken the brain. Track the latest research in the field of neurobiological marketing and put it into practice.
Personalized Marketing
Personalized marketing, also known as personalized marketing or customized marketing, is a marketing strategy by which companies use data analysis and digital technology to deliver customized messages and product offerings. current or potential customers. Advances in data collection methods, analytics, digital electronics and the digital economy have allowed marketers to use more effective real-time and customer experience extension personalization tactics.
Technologies
Personalized marketing depends on many different types of technologies for data collection , data classification , data analysis , data transfer , and data scalability . The technology allows marketing specialists to collect their own data, such as gender, age group, location and income, and link them with third-party data, such as CTR on the Internet banner advertising and participation in social networks.
Data Management Platforms : A Data Management Platform (DMP) is a centralized computing system for collecting, integrating and managing large sets of structured and unstructured data from disparate sources. Personalized marketing, supported by DMP, is sold to advertisers in order for consumers to receive relevant, timely, interesting and personalized messages and advertisements that meet their unique needs and desires. An ever-growing number of DMP software options are available, including Adobe Systems Audience Manager and Core Audience (Marketing Cloud ) to the acquired Oracle BlueKai, Sitecore Experience Platform and X+1
Customer Relationship Management Platforms: Customer Relationship Management (CRM) is used by companies to manage and analyze customer interactions and data throughout the customer lifecycle to improve business relationships. with customers, helps to retain customers and stimulate sales growth. CRM systems are designed to collect information about customers through various channels (points of contact between the client and the company), which may include a website, operational support, direct mail. , marketing materials and social networks. CRM systems can also provide customer service personnel with detailed information about customers’ personal information, purchase history, preferences and purchase problems. The most popular corporate CRM applications are Salesforce.com , Microsoft Dynamics CRM, NetSuite and Oracle Eloqua.
Beacon Technology: The beacon technology is powered by Bluetooth low-power (BLE), which is used by a low-frequency chip that is used in devices such as mobile phones. These chips exchange data with several Beacon devices to form a network and are used by marketers to better personalize messaging and mobile advertising depending on the proximity of the customer to their retail outlet.
Strategies
One-to-one marketing refers to marketing strategies applied directly to a specific consumer. Knowledge of consumer preferences allows us to offer each consumer specific products and promotions. Individual marketing is based on four main steps to achieve its goals: identification, differentiation, interaction and customization.
Identify: At this stage, the main task is to get to know the company’s customers, to collect reliable data about their preferences and ways to best meet their needs.
Differentiate: Distinguish customers in terms of their vital value to the company, recognize them by their priorities in terms of their needs and segment them into narrower groups.
Interaction: At this stage, you need to know which communication channel and by what means it is best to establish contact with the client. It is necessary to attract the client’s attention by interacting with him/her in ways that are known as the ones he/she likes the most.
Customize: You need to personalize the product or service for the customer individually. The knowledge that the company has about the client must be put into practice, and the available information must be taken into account in order to be able to give the client exactly what he/she wants.
Costs and benefits
Personalized marketing is used by businesses for individual pricing, which is a form of price discrimination. Personalized marketing in one form or another is being implemented by many different companies because of the benefits it brings to both businesses and their customers.
Businesses
Before the advent of the Internet , it was difficult for companies to measure the success of their marketing campaigns . The campaign will be launched, and even if there is a change in revenue, it is almost impossible to determine what impact the campaign will have on this change. Personalized marketing allows companies to learn more about customers based on demographic, contextual and behavioral data. This behavioral data, as well as the ability to track consumer habits, allows companies to better determine which advertising campaigns and marketing efforts attract customers and which demographic groups they influence. This allows firms to abandon inefficient efforts, as well as invest more money in methods that attract customers.
Some personalized marketing can also be automated, increasing the effectiveness of the marketing strategy of the business. For example, an automated email may be sent to the user shortly after placing an order, offering similar products or accessories that can help the buyer make better use of the product they ordered, or a mobile application may send a notification of relevant transactions to the buyer when he or she is near the store.
Customers
Consumers are faced with a huge variety and volume of products and services available for purchase. One retail website can offer thousands of different products, and few have the time or the desire to make the effort to view everything that retailers offer. At the same time, customers expect ease and convenience when shopping. In a recent survey, 74% of consumers said they are disappointed when websites have content, offers, advertisements and promotions that have nothing to do with them. Many have even stated that they will leave the site if the marketing on the site is contrary to their tastes, for example, an offer to donate to a political party that they do not like, or an advertisement for a dating service when a visitor to the site is married. In addition, there are two main reasons why customers refuse to subscribe to marketing mailing lists : 1) they receive too many emails and 2) the content of the emails has nothing to do with them.
Personalized marketing helps to bridge the gap between the vastness of what is available and the needs of customers to optimize the shopping process. By providing customers with an individual approach, you can avoid disappointment when choosing a purchase. Customers can find what they are looking for faster and not waste time looking at irrelevant content and products. Consumers have come to expect this kind of user experience that suits their interests, and companies that have created cutting-edge digital experiences, such as Amazon and Netflix
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The Future of Personalized Marketing
Personalized marketing is gaining momentum and has become the subject of universal interest with the advent of relevant and supportive technologies such as DMP, geotargeting and various forms of social networks. Now many people believe that this is an inevitable basis for future marketing strategy and future business success in competitive markets.
Adaptation to technology: For personalized marketing to work as its advocates say, companies will have to adapt to the appropriate technologies. They will have to get acquainted with new and popular forms of social networks, data collection platforms and other technologies that not all current employees and businesses may be familiar with or can afford.
Restructuring of existing business models: The introduction of a new marketing system adapted to the most relevant technologies will require time and resources. Successful implementation of personalized marketing will require organized planning, communication and restructuring within enterprises. Some companies will have to accept that their current business and marketing models will change radically, and probably often. They will have to rethink how to distribute data and customer information inside the company and possibly outside it. Company databases will be filled with extensive personal information — a person’s geographical location, past purchases of potential buyers, etc., and difficulties may arise as to how this information is collected, distributed inside and outside the company and used to increase profits.
Legal Information Obligations: To solve problems related to the collection and use of confidential information without the explicit consent of the consumer, it is necessary to establish and ensure compliance with legal obligations. Privacy is always a problem, in some countries more than in others, so companies have to overcome any legal hurdles before personalized marketing can be implemented.
Consumers are more likely to make a purchase from brands that know their name, purchase history and provide customized offers according to these data.
Performance marketing
Every marketer wonders how effective advertising works. A couple of decades ago, it was difficult to calculate how much money each dollar invested in advertising brings. Today, not only large corporations, but also small/medium-sized businesses can afford it.
Performance marketing (performance-based marketing) is marketing aimed at achieving specific, measurable business results.
Features of Performance Marketing:
- measurability of the effectiveness of the channels used;
- assessment of business indicators (CPA, ROI);
- the ability to influence the indicators in real time;
- synchronization of SEO, SMM, email marketing, display advertising to achieve maximum results.
Campaign performance indicators are measured and tracked using referral links, coupon codes, and individual phone numbers. This method requires a long setup and careful testing. In addition, we need an effective strategy and a convenient, fast platform. But in the end, all efforts pay off with a high ROI and the simplicity of determining the success of the campaign.
Learn more about each component of performance marketing:
End-to-end analytics
This is an analysis of qualitative and quantitative business data that allows you to improve interaction with existing and potential customers on the Internet and solve marketing tasks.
In performance marketing, end-to-end analytics is present at all stages of work: from the initial analysis for setting goals and objectives of the performance strategy to analytics at each stage of the sales funnel for each advertising channel of the strategy.
Setting goals
The starting point in developing a successful advertising campaign is setting goals based on the SMART concept. Performance marketing works directly on sales and indirectly on image goals. Based on digital analytics, based on business goals, specialists select Internet marketing tools, form a unified strategy, determine the timing of implementation, budget and KPI of the campaign, and the results are measured in the margin profit received.
Building a comprehensive strategy
This is the selection of the most effective advertising tools for each specific business and website. With their help, users are attracted to a web resource, each visitor is guided through the entire sales funnel, as well as retention and return to the conversion stage — to re — purchase, to the status of a regular customer of the company.
A comprehensive strategy is based on data from deep web analytics of the site, all current online advertising activities, analysis of a specific business and the specifics of the industry as a whole. It works for the goals set for a specific business, calculated in money. Each complex strategy is an individual product that excludes template, universal solutions. The components of the strategy work closely together, based on and under the control of digital analytics, providing a synergistic effect.
Implementation of a comprehensive strategy
Management (tracking of results and correction) of advertising channels at all stages of the sales funnel; occurs continuously and simultaneously at all conditional stages of the funnel:
Reach and engagement
The goal of the stage is to notify as many users as possible about the offer and get as much targeted traffic to the site as possible, where these visitors will be converted into buyers. For this purpose , they work most effectively:
Conversion
The goal of the stage is to retain and involve the target visitor in interacting with the site in order to bring them to the target actions: leaving a lead, ordering, and then selling a product or service. The main tool of an Internet marketer at this stage is the usability (convenience) of the site, it can work both for instant sales and for deferred demand.
At the conversion stage, the role of complex analytics increases, allowing through various ways of personalization of the client to track and link into a single system his online activity and direct communications with the company (calls and personal visits to the office, emails, etc.), the source of which was the website and / or Internet advertising. Based on this data, decisions are made on the implementation of the strategy: connecting, disconnecting, adjusting advertising channels. Such analytics is called end-to-end, as it tracks the full path of the client from viewing ads to buying, passing through all stages of the sales funnel.
Return
Most companies strive to increase the “customer lifetime” — the period during which a person or business is a client of the company. Accordingly, the lifetime value of the customer (Eng. Customer Lifetime Value, SLV) increases — the total volume of sales or the total profit that the customer brings for all the time working with the company.
Work on returning customers to the site is carried out not only after the sale, but also at the previous stages of the funnel. To find and return potential and established customers from the Internet allows a periodic reminder of the brand using various advertising channels and tools:
Measuring efficiency
Acting in close relation to business goals, performance marketing offers to measure the effectiveness of advertising in such indicators as:
ROI (Return On Investment) — return on investment (whether the money invested in advertising has returned, and how much these investments have allowed to earn). Calculated as (income — the cost of a product or service)/total amount spent on advertising (total investment amount) *100%;
ROAS (Return On Advertising Spend) — return on investment relative to advertising costs. It is calculated as the ratio of the total conversion value ( target action on the site, usually a purchase) to the cost of advertising.
ROMI (Return On Marketing Investment) — return on investment relative to advertising costs. It is calculated as the ratio of the cost of an advertising campaign to the Cost of it. Calculated as (advertising revenue — advertising costs)/advertising costs * 100%;
CLV (Customer Lifetime Value) — the profit received from the buyer for the entire time of his stay in the status of the company’s client;
CRV (Customer Referral Value) — the material benefit that the current client brings by recommending the brand to other people.
All these indicators are expressed in tangible, economically significant units for business — money. In addition to the KPIs set for the strategy as a whole, the effectiveness of each advertising channel is evaluated — the payback factor that affects the distribution of the advertising budget is monitored.
Conclusion
Types of marketing are numerous and diverse, but without knowledge of the characteristics of the target audience, it will not be possible to achieve an effect with any of them. Today we have finished our reviews of popular types of marketing, but this does not mean that other types do not work and are not as effective. For each business request, you need to choose a certain type of marketing and, most importantly, measure the effectiveness of the work done.