In today’s rapidly evolving marketing landscape, where privacy laws and changing data practices have reshaped the advertising landscape, marketers find themselves at the forefront of adaptation. The challenge of effectively measuring and targeting audiences has prompted a shift in the marketing mix. This blog delves into the insights and strategies discussed in a panel session at the recent CommerceNext Ecommerce summit, featuring industry experts who have successfully navigated these challenges.
The key takeaways from this session include:
- Rethinking measurement approaches
- Navigating customer identity and engagement
- Data-driven personalization strategies
- Strategies for creative targeting
Watch the full session recording below or continue reading for a more in-depth exploration of the session’s takeaways.
Rethinking Measurement Approaches
A central theme in the discussion was the reimaging of measurement strategies in response to the new marketing landscape. Doug Jenson from The Estée Lauder Companies shared that their approach to measurement has transformed significantly. They moved from relying solely on marketing mix modeling to adopting a more forward-looking strategy that encompasses multi-stage models. This shift enables them to consider various funnel stages, such as upper, middle and bottom funnel, which include factors like Google search, traffic and sales.
As influencers and creators began to reshape industries, Doug’s team realized the need to account for these factors in their measurement strategy. The ability to look at each part of the funnel allows them to also consider factors like non-brand search, branded search, paid social media and more with an overarching focus of driving traffic to the site.
Navigating Customer Identity and Engagement
Ryan Gibson from Adlucent delved into the intricacies of customer identity and engagement. The challenge lies in driving customer engagement, even from those who don’t make immediate purchases. This requires understanding touchpoints, both through marketing channels and on-site interactions. Loyalty programs and strategic incentives can encourage deeper engagement providing valuable data and insights for further targeting.
Ryan also highlighted the blend between customer acquisition and the long-term value of new customers. Predictive data analysis and machine learning play pivotal roles in understanding customer lifetime value and behaviors, guiding marketing strategies toward profitable growth.
Data-Driven Personalization Strategies
Angela Hsu of Overstock emphasized the importance of capturing first-party data for personalization. In a world of evolving privacy laws, first-party data is vital for authentic customer interactions. Loyalty programs and incentives can encourage customers to share their data, thereby enhancing the ability to personalize experiences across channels. They have a loyalty program where people can pay a certain amount of money and get free shipping, free returns and accumulate points and other special member sales. They are focused on having the benefits for people giving you their email address outweigh the membership fees or purchase costs.
Emily Essner from Saks discussed their strategy of personalization using predictive models. The concept of “Saks DNA” involves over 250 predictive and descriptive attributes, which help tailor communications and experiences for individual customers. Some of these attributes include looking at the last category a customer looked at and their favorite brands. By understanding customer preferences, Saks can prioritize high-LTV customers and allocate resources accordingly.
Strategies for Creative Targeting
The importance of creative targeting in advertising emerged as a common thread among the experts. Emily highlighted that creative is the most significant predictor of performance. They do a lot of work to understand what’s working and what platforms are performing well. For example, they have found that emotion derived from single images has been declining so they have turned to a focus on video. Staying agile and responding quickly to trends, such as those on TikTok, has become vital. Doug also talks about how creative is something we need to talk more about when we discuss measurement. He emphasizes how you can use AI to make it more efficient to navigate all of the options for creative targeting.
Staying ahead of the curve in the fast-paced marketing world requires constant evolution, data-driven decision-making and a customer centric approach. Understanding the marketing mix is essential for achieving success. This session offers a wealth of insights for marketers wanting to navigate the complex challenges of measurement and targeting in this evolving advertising world.
For more on measurement strategies, take a look at our blog post on how to best leverage customer data for elevated experiences.
FAQs:
1. How do marketers balance the need for data-driven personalization with evolving privacy laws and concerns about consumer data protection?
Marketers must prioritize first-party data collection and transparent communication with customers. Strategies may include implementing loyalty programs and incentives to encourage data sharing while ensuring compliance with regulations like GDPR and CCPA.
2. What specific metrics or KPIs are recommended for measuring the effectiveness of multi-stage measurement models, particularly concerning upper, middle and bottom funnel activities?
Specific metrics or KPIs recommended for measuring the effectiveness of multi-stage measurement models include conversion rate, CAC, CLV and ROAS. These metrics provide insights into different stages of the marketing funnel and help assess the overall performance and impact of marketing efforts.
3. In what ways can marketers effectively adapt their creative targeting strategies to leverage emerging trends and platforms like TikTok and how do they ensure agility and responsiveness in their approach?
Marketers should be agile and responsive. This may involve conducting thorough audience research to understand the preferences and behaviors of users on these platforms, experimenting with different types of content, and monitoring performance metrics in real time to optimize campaigns for maximum impact.
