Marketing automation: respond smartly to customer behavior

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It's great to know who your customer is, but knowing how he or she behaves is, if anything, even more interesting. Customer profiles, demographics and self-reported preferences tell you a lot about what a prospect or customer might be interested in. But behavior shows it directly. Responding to customer behavior using marketing automation is not a pipe dream. You can already put it to practical use today to improve your marketing results.

Active listening: sense & respond

Behavioral data can be very predictive of future behavior and decision patterns. Thus, that data is an indication of future activities on the way to a purchase, the customer buying journey.

Actively responding to customer behavior is called sense and respond. Search, browse and click behavior is directly related to future purchase opportunities, intent and interests. A prerequisite, of course, is that software and systems are ready to combine and unlock all this data in such a way that the marketing data can be deployed "agile."

Sense and respond is actually responding to the implicit information that customer behavior gives us. And that is precisely one of the core functionalities of marketing automation. Four tips for deploying marketing automation and behavioral targeting.

1. Identify customer behavior

Operating and capturing behavior is imperative. In a Web session, for example, you can see what actions a visitor (searching, viewing pages) takes on a site.

To do this, it helps if you can identify the user. A unique id or "digital fingerprint" makes that possible. For example, you can recognize a visitor if they are logged into your site. It can also be done with cookies or with the slightly newer 'device fingerprinting' technique. This technique takes not the user, but the configuration of the computer or device as the recognition point.

2. Respond directly, real-time to customer behavior

A customer takes an action and we respond to it (directly). In other words, strike while the iron is hot. An example can be found on the site of stock photography provider Dreamstime. If you enter a search query there several times, but cannot find what you are looking for, a chat window automatically pops up asking "Can I help you with something?". The visitor's behavior thus determines whether the chat window is displayed.

This is immediately one of the strengths of behavioral targeting: the chance that your visitor does indeed need a little help is high. Visitors will therefore see this action as helpful and considerate rather than "pushy," resulting in a positive customer experience. A nice bonus is that if a customer is indeed helped and finds the right products, he or she will buy them. This is the direct way: the customer exhibits specific behavior and the site responds to it immediately, in real time.

3. Behavior and customer profile: a strong combination

The classic abandoned shopping cart e-mail is another example of sense and respond. That form of triggered messaging also plays directly on behavior. The visitor places a product in the online shopping cart, but does not complete the purchase. By drawing that visitor's attention to the shopping cart via e-mail, the chances of conversion increase.

Statistics from the British company Triggered messaging show that deployment of abandoned shopping cart mails can lead to an average 8 to 10 percent sales increase. Combined with browse abandonment (sending based on search behavior on the site) adds another 2 to 3 percent. While the site visitor was still anonymous in the chat window from point 2, for sending the e-mail it is a prerequisite that you recognize the customer, so you can link the behavior to the e-mail address.

This allows you to immediately use the customer profile, combining the behavior with the other data you know about the recipient. The simplest form of an abandoned shopping cart email is a simple message: 'There is still a product in your shopping cart' with a link to the login page or the shopping cart itself.

A next step is to personalize the 'abandoned shopping cart' email directly and tailor the content to the recipient and their behavior. Personalization options in conjunction with a customer profile include:

  • Displaying an image of the product directly in the email

  • Including contact information of account manager or appropriate service center

  • Displaying the closest branch

  • Progressive profiling: Ask to complete profile

  • Favorite color, size or type of recipient

Go even further, and you're talking about even smarter emails. In fact, you can further supplement your mails with other suggestions based on the customer profile and which segments your customer is part of. For example, your customer may have enough loyalty points or customer value to get the product at a discount or get an upgrade (think airlines). On the other end of the spectrum is the bad, loss-making customer who we'd rather not send a reminder. We can also recognize whether it is a repeat purchase or just a new customer.

As a marketer, you understand that the easiest form of action on customer behavior gives immediate returns. After that, the combination of behavior and profile proves very powerful to further refine the message, content and timing.

4. Make current touch points behaviorally optimized

Customers are actually doing a lot right now that we can capitalize on. If your company uses behavioral marketing broadly, the processes that leads, prospects and current customers go through are the inspiration to discover gaps in communication and quick wins. There are already plenty of processes in the customer journey where we are already interacting, but are not yet optimally set up.

Think of these processes as requesting a quote or product information, placing an order, registering for an event, taking a service call or downloading information from the site. Within those transactional processes, there is often an amazing amount to be gained. Some questions to ask in this regard:

  • What is each process fundamentally for?

  • Can we identify the customer?

  • What stage is the customer in at that moment?

  • How can we make it easier for the customer?

  • Are there ways to surprise the customer?

  • How can we increase the conversion or success rate?

  • What other purposes can we use this contact moment for?

Shaping the right message and segmentation

Not all actions based on customer behavior require immediate action. Sometimes it is precisely the combination of multiple behaviors that brings a pattern to the surface. It helps you shape the right message and segmentation. More on that in a subsequent article.

This article was published on Frankwatching on November 19, 2014.

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