One of the strategies is to personalize the marketing materials to the targeted consumers instead of blasting generally targeted ads. The company needs to first identify the consumers who are most profitable. The company should create a multi-dimensional profile of their customers and not just looking at what they are buying, but also what they may be thinking of buying and how they are behaving online. As the growth of e-commerce and social media continues, information about consumer habits outside of the traditional brick-and-mortar store is increasingly more valuable to marketers. This information, analyzed correctly, could help companies get to know their consumers and personalize ad campaigns to create more sales and customer loyalty.
This may seem simple but the biggest challenge for a company is to know who its customers are and what their needs are. Without the correct information about their customers, a company’s ad campaign could easily miss its intended audience. It’s a known fact that about 20% of a company’s customer base brings the greatest profit and about half are only marginally profitable. The challenge is for the advertising effort to reach out to those customers who are most likely to drive in the maximum value to a company. Another strategy is to look into consumer behaviors beyond the past store purchases. This is referred to as a multi-dimensional consumer profile. Online behavior and past purchases could help to determine buying patterns more than just purchase history alone. With increasing number of people engaging in online activity and social media, it is important for marketers to not rely on one facet only to predict consumer behavior. When these information are processed correctly, consumers gets the benefit from being offered goods and services that they are looking for and companies profit from advertising dollars well spent.