CI&T’s Business Value Insights survey of executives of large corporations found that 8 of 10 respondents not only recognize the relevance of digital transformation, but also see it as an impact factor in their markets.
This digital transformation, as well as the technological innovations resulting from it, has given consumers a new power, and the adoption of precision marketing approaches can help companies align themselves with both this new era and the new consumer.
Nowadays, prior to making a purchase, an individual has the opportunity to conduct extensive research, comparing product prices and qualities, analyzing customer evaluations of functionality, service and the manufacturer itself, and more. In many cases, the purchase of the product or service can be made from home.
This situation has intensified the importance of maintaining an ever closer relationship with the consumer.
In light of these challenges, precision marketing seeks to increase business opportunities for companies and generate benefits for the consumer.
So what is Precision Marketing?
Precision marketing is a marketing approach geared toward those who are already customers of the brand. It seeks to consolidate customer loyalty by encouraging purchases not through advertising, but from promotions, special offers, and company actions that ensure brand loyalty by identifying value added and providing a differentiated shopping experience. Precision marketing employs time-tested strategies, such as relationship marketing, one-to-one marketing, and direct marketing.
Precision marketing, therefore, aims to work with current customers to encourage brand loyalty and stimulate the behavior of buying. It depends less on creating persuasive ads and more on creating compelling offers, offers that appeal to existing customers.
For this to be possible, precision marketing relies heavily on well-crafted market segmentation to identify smaller, more specific niches of customers with unique needs.
The strategy that will be adopted in precision marketing is directly related to customer data gathered and analyzed through the segmentation. The choice will be determined by an analysis of the value attributed by the customer, depending on the latter’s profile and response to that strategy. Some examples of offers and promotions are:
- Loyalty cards entitling a customer to a free pizza after purchasing ten;
- Coupons or vouchers for discounts;
- The company’s own branded credit card allowing the customer to make discounted purchases and/or in interest-free installments;
- Points programs that entitles the customer to a discount or a voucher upon acquiring a certain amount.
The offers vary greatly, but it is important to note that both the financial advantage gained from the promotion and the rules of the promotion should easy to understand. Otherwise, they may cause the consumer to see the offer as more of a problem than it is worth.
The goal of any offer is to make customers feel valued by having their needs recognized.
If a brand is able to ensure a differentiated and exemplary customer experience with an offer, the likelihood of a customer making a repeat purchase increases considerably.