What is Precision Marketing?

Precision Marketing with the name itself suggests accuracy and focus. The businesses must position themselves as necessary in the mind of the existing customers. As per the study, it is shown that Indian consumer shows fickle behavior when it comes to brand loyalty.

As per the reports by Inc. magazine gathering new customers is 5-10% more difficult than selling to the existing one. Also, major global consumer product companies that expend heavy amounts on mass-marketing have seen diminishing returns. As if the customers are familiar with the brand and the product it offers advertising costs get reduce. Also, the existing customer will spend up to 67% more than the new customer. But the existing customers also expect more from a company to be a loyal one. So, their needs and desire become high. Companies should take great efforts to fulfill the needs and desires of their existing customers as they are important for them and also to prevent the loss of their customers from emerging competitors.

Companies initially evolving databases of customers, along with the cutting-edge data warehousing and mining tools which increased the spending heavily to understand consumer behavior. But now they started to focus on identifying the micro-segment of customers. And then they use the most appropriate marketing communication channel to reach out to the target customers which is our micro-segment customers. So, segmenting of the market is dependent on harvesting data about customer behavior. Precision marketing will become successful with careful and comprehension plans.

In precision selling, a systematic process for segmenting customers and prospects is carried for developing segment-specific account coverage strategies. It is a marketing technique to retain, cross-sell, and upsell existing customers. The key role of precision marketing is customer retention and revitalization. Customer demand and expectation along with fierce competition are its driving factor.

Effective data which we can get from tools like Data management platforms(DMPs) and the advent of marketing clouds which helps the marketer to know where the consumers are spending their time and whether they are engaging with the brand’s message or not.

There is a famous line by David Ogily “I know for a fact that half my advertising money is wasted. What I don’t know which half.” The first part of the statement is true but the second one is seldom true. Because it is important to know which part it is even before looking at the quality and nature of the efforts.