Using online demographics to focus marketing activity. Understanding the online audience

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1 Using online demographics to focus marketing activity Understanding the online audience An Experian Marketing Services White Paper February 2015

2 People are different population trends People change. People are different. Social trends are constantly developing as the way we live our lives evolve due to changing economic, cultural and technological climate. The average person leads a very different life today, professionally and personally, compared to 10 years ago. Technology has been one of the biggest drivers following the absorption of the online world into every aspect of day-to-day life from banking, to shopping and entertainment. Social media has been a huge driving force of that change, allowing people to live their social lives online chatting with friends, keeping in touch with relatives and sharing media. The rise of smart mobile technology means it is possible to access the internet 24/7, regardless of where or when. This brings into play all sorts of interesting locationbased factors. All this activity creates data. Modern people, due to the level of technological activity, create more data than ever before. How people behave online is of interest to brands because understanding of a customer is key to informing how brands can market to them. Using online demographics to focus marketing activity 2

3 What customer behaviour and propensity means for brands Understanding the behaviour of certain customers allows brands to understand how best to communicate with them. Some will prefer , others social media. Behaviour shows where people are and when they are there. Certain types of people may have a propensity to visit a certain type of website or shop at a particular genre or type of ecommerce store. Likewise, people who buy a certain type of car or earn a certain wage may be more likely to go on holiday to a certain place. An individual s propensity to behave in a certain way depending on their history and circumstance is an important factor for marketers. Based on what certain people are more likely to do, brands can anticipate behaviour and maximise marketing efforts. However, all of this depends on having a thorough and accurate understanding of customer segments and knowledge of who the customers are in order to focus the right marketing on the right people. Using online demographics to focus marketing activity 3

4 Online behaviour With changing population trends it becomes more and more important to understand who people are in order to know how to market to them. Fortunately, due to the sophisticated segmentation tools, consumer analysis processes and online intelligence platforms now available, it s possible to categorise individuals into groups based on location, financial situation and behaviour. Using such advanced techniques it s then a straightforward step to highlight customers propensity to behave in certain ways to inform marketing strategies. What follows is two examples of customer groups and some of the insights available to their potential behaviours. We have chosen two groups which, at first glance, are fairly similar in order to demonstrate the need for detailed analysis and segmentation. It is fairly clear that below the surface both groups are quite different in terms of propensity and behaviour. Evidently, straightforward age or demographic based marketing would not be able to operate at as detailed a level. Using online demographics to focus marketing activity 4

5 Bank of Mum and Dad The first customer group is called Bank of Mum and Dad and consists of relatively well-off families in upmarket suburban homes with grown up children continuing to benefit from financial support. Key features: TWICE as likely to visit golf websites Members of this group are more likely to be golf fans. This could influence where a brand places its adverts but it could also be a useful insight to incorporate into content generation. Content with a golfing flavour or relevant to golf could be appropriate. Insights on likely behaviour Married couples aged Adult children at home High salaries from senior positions Quality 4 bed detached homes Mortgage nearly paid off Use technology practically Digging deeper into the data it is possible to pull a number of insights which could prove exceptionally informative for brands formulating marketing strategies. 18% more likely than the average user to visit shopping sites selling books Members of this group are evidently more likely to be keen readers which should be of interest to book retailers. It would also be possible to investigate what genres they prefer in order to tailor offers and communications further. 70% 30% 39% more likely to visit websites about skiing and snowboarding It s clear that this group are more likely to go on skiing and snowboarding holidays. This is a potentially huge insight for travel companies able to tailor communications to put an emphasis on deals for snow sports holidays. Likewise, advertising on skiing websites or retargeting ski gear adverts may pay dividends. more likely to visit websites about the performing arts This would indicate that this group are potentially a good audience for sellers of theatre tickets or high end entertainment. more likely to visit sports yachting and boating websites 29% more likely to check weather reports online An interesting fact for brands who would like to reach this group is that they are more likely to be found on weather websites checking the state of the weather. This could mean placing adverts on weather websites or doing deals with weather companies to reach a higher proportion of the right customers. This slightly more affluent group is more likely to be interested in yachting and boating. Holiday companies which sell sailing packages or sellers of boats and yachts may be interested in reaching them. Of course, these insights need to be cross-referenced to reach maximum potential. For instance Bank of Mum and Dad have an interest in both skiing and yachting. Therefore it would be sensible for a travel company to market skiing holidays in the run up to peak booking times but then switch it to sailing or golfing trips depending on the time of year. Examples created using Experian s Mosaic segmentation tool combined with online intelligence platform, Hitwise. Using online demographics to focus marketing activity 5

6 Boomerang Boarders Boomerang Boarders, a name coined for long term couples with middle range incomes whose adult children have returned to live with them, is the second example. Insights on likely behaviour Key features: Adult children living with parents Respectable incomes Own mid-range semis or detached homes Older suburbs Search electricals online while in store Adult kids learning to drive Digging deeper into the data it is possible to pull a number of insights which could prove exceptionally informative for brands formulating marketing strategies. 20% 34% more likely to visit travel agencies Members of this group are more likely to visit travel agents rather than book holidays on their own. Travel agents would be sensible to focus their attention on groups like this as they are likely to get less traction from other groups less inclined to use travel agents. Similarly, brands wishing to reach this group should consider advertising on travel agent websites. more likely to visit fishing websites People within this classification are a third more likely to visit fishing websites indicating an interest in fishing as a pastime. This insight could prove useful to brands trying to reach them (on fishing websites for instance). People within this group may also react positively to content related to fishing. Likewise, travel companies may wish to offer this group deals and offers on fishing trips. 20% more likely than the average web user to use web-based services Understanding that this group are more likely to access their online, or that they check their more frequently than others, should help inform marketing strategies. Online services differ from desktop providers so tailoring s to more suit web-based services would be sensible for brands wishing to reach this group. 26% more likely to send e-greetings Members of the Boomerang Boarders group are more likely to send e-greetings so this is potentially a valid channel of communication to investigate. E-greeting companies should consider reaching out to these people where they can as they are potentially valuable customers. Examples created using Experian s Mosaic segmentation tool combined with online intelligence platform, Hitwise. Using online demographics to focus marketing activity 6

7 What does this mean for brands and businesses? Different people have different preferences and a propensity to behave in different ways. Understanding what certain groups are more likely to do and where they re more likely to do it is imperative for brands wanting to take a sophisticated approach to interacting with specific groups and customer types. Customer experience is crucial in modern marketing, for many it s the key battleground, and understanding more about your customers wants, needs and desires is crucial in order to provide them with the service most suited to them. Good customer experience fosters brand loyalty, retention and advocacy. Providing the modern customer, who is extremely demanding, with the best possible experience should be one of the main aims of every brand s marketing strategy. A full understanding of population trends and the forces behind those trends brings opportunities for commercial organisation to make positive changes to their activity. The location of outlets, product ranges and services best suited to a geographic area and the best people and locations to market to, all depend on a thorough understanding of customers and the ability to decipher different customer types. This is why it s important to have the most up to date data and know who your customers are and how they behave across channels. Brands need to ensure segmentation and analysis tools for online and offline are sophisticated enough to keep abreast of changes and trends and need to use these tools to inform marketing strategies in order to make marketing as effective and efficient as possible. Key takeaways Understand who your customer are Focus on the quality and conversion of the traffic being driven to your site Invest in the right segmentation and online intelligence tools Use insights to better focus marketing efforts to increase efficiency and effectiveness Tailor marketing to suit customer preference Keep abreast of changes and trends in population Experian Marketing Services is a leading global provider of consumer insights, targeting, data quality and cross-channel marketing. We help organisations intelligently interact with today s empowered and hyper-connected consumers. By helping marketers identify their best customers, find more of them, and then coordinate seamless and intelligent interactions across the most appropriate channels, Experian Marketing Services clients can deepen customer loyalty, strengthen brand advocacy and maximise profits. For further information please contact us: Using online demographics to focus marketing activity 7

8 7 Old Town Clapham London SW4 0JT 1 The Heights Brooklands Weybridge Surrey KT13 0NY Embankment House Electric Avenue Nottingham NG80 1RH 160 Dundee Street Edinburgh EH11 1DQ Experian Ltd is authorised and regulated by the Financial Conduct Authority. Experian Ltd is registered in England and Wales under company registration number Registered office address: The Sir John Peace Building, Experian Way, NG2 Business Park, Nottingham, NG80 1ZZ The word EXPERIAN and the graphical device are trade marks of Experian and/or its associated companies and may be registered in the EU, USA and other countries. The graphical device is a registered Community design in the EU. All rights reserved. 02/15

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