In a customer-centric marketing organization, every marketing action or program should be informed by deep knowledge of the customer. The Know stage creates this understanding by aggregating customer data from available data sources (e.g., purchase data, demographic data, marketing behavior data), and analyzing it using a variety of tools and techniques.
One of the customer insights gained in the Know stage is the value of customers acquired from different customer acquisition channels (e.g. social media marketing, search engine marketing, affiliate marketing). In the Find stage, acquisition marketers leverage these insights both on a cross-channel (strategy) level, and on a within-channel (tactical) level.
On a cross-channel level, marketers can identify the channels that are bringing in their highest-value customers, and invest more in these channels. Similarly, they may consider cutting back on investment in channels that are bringing in lower value shoppers.
On a within-channel level, marketers can drill down into channel-level insights such as which SEM keywords and which affiliate partners bring in valuable customers, and adjust their SEM bids and affiliate commission structure accordingly.
Social Media Acquisition Optimization Using Customer Centric Insights
Another example is using customer insights for paid social media acquisition campaigns. The “Know” stage gave marketers the knowledge of who their most valuable customers are, and what makes them different - in terms of demographics (like gender, age, location), product preferences, and other attributes. Armed with this knowledge, marketers can create “custom audience” campaigns in Facebook to target users similar to their best customers. For example: Imagine you discover - through the Know stage analyses - that your best customers are married women who live in the mid-west, and tend to buy kids apparel and toys on their first purchase in your store. You can then create a Facebook lookalike campaign targeting users of similar demographics, using ad creative that features kids clothes, shoes, and toys.
Next we describe in detail two use cases of optimizing customer acquisition programs using customer-centric methods - in the SEM (search engine marketing) channel and in the affiliate marketing channel.