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What is Precision Marketing?

Precision marketing is targeted at existing customers to inspire brand loyalty and buying behavior. Precision marketing relies less on creating compelling ads and more on creating deals, offers, and gimmicks to attract existing customers. Across all industries, consumers have never had so many choices. Whether consumers choose between two similar products or skip stores completely and shop online, they can easily compare products offered by different companies and shopping platforms. Because consumers have so much power, companies must position themselves as necessary in the minds of existing customers. In the U.S., finding new customers costs five to 10 times as much as selling to existing customers, according to the survey. When a customer is already familiar with a company and its products, the company's advertising costs are greatly reduced. Moreover, existing customers will spend 67% more than new customers. This presents unique challenges and opportunities for businesses. Existing customers have lower costs, but they also have higher expectations. The more loyal they are to the company, the more they want it to meet its needs and fulfill its aspirations. Companies must be careful to sell themselves to existing customers, or risk ceding them to other competitors.
What is Precision Marketing?

Precision marketing is targeted at existing customers to inspire brand loyalty and buying behavior. Precision marketing relies less on creating compelling ads and more on creating deals, offers, and gimmicks to attract existing customers. To do this, precision marketing relies heavily on market segmentation: a technology that segments the market into smaller, more specific, unique customer segments. Market segmentation can be very broad, such as for women, or it can be very specific: married women over the age of 30 with children. Market segmentation depends on the data collected about customer behavior. For example, a discount card that gives customers a discount saves money, but also tracks everything they buy and gets their demographics. Online retailers ask customers for details such as location, age, gender and personal preferences when they sign up for an account. All of this data is stored in a huge database and analyzed by marketing departments to better understand who their customers are and what they want. Using this data, companies can develop loyalty programs to attract existing customers, from free goods to special treatment and exclusive products. The goal of any offer is to make customers feel that their business is valuable and that their needs are recognized. If a company is consistently delivering a comfortable customer experience, customers are more likely to visit again.

How is a precision marketing plan developed and implemented?

As the name implies, precision marketing focuses on accuracy and focus. The only way to implement a precision marketing strategy is to follow a detailed and comprehensive plan. Best Western Hotels, for example, is one of the world's largest hotel chains, serving families and business travellers who frequent the hotel. To encourage repeat customers, Western Hotels has developed an industry-leading incentive program to reward customer loyalty. After successfully getting travelers into loyalty programs, Western hotel companies are looking for the best way to increase their membership. The company collects a lot of data about its customers through online activities. After analyzing the data, Western hotel companies decided to use direct mail marketing campaigns to reach their old customers. They worked with a company called InfoPrint to design periodic reports similar to credit card bills or frequent flyer reports. The goal is to make it easier for customers to understand what benefits they've already gained and how they can earn more. Reports provide information in a clear and comprehensive manner to get the most out of your customers. Western hotel companies are also using the report to encourage customers to sign up and use a unique Access Credit Card through clever advertising campaigns. Western hotel companies sent half of their loyal club members a new version of the report with the card printed on it, and sent their old version to the other half. After 8 weeks of trial operation, the new version of the report proved to be very effective, increasing the number of stops by 39% and the length of stay by 34%. In addition, more than 500% of customers signed up for MasterCard after receiving the new version of the report.

Suggested customer retention methods:

- Priority is given to customer service
- Use different communication methods, from Twitter and email to direct mail
- Actively and continuously communicate with customers
- Ask for feedback from customers
- Increase loyalty through reward programs, special offers, and ongoing sales
- Keep competitive prices
- Provide new products and services to meet changing consumer needs
- Train a happy and helpful employee to work with customers
- To provide the highest quality products and services
- Create a pleasant and friendly atmosphere in the workplace

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