Feeling competitive pressures and costly media investments, marketers are seeking more effective ways to identify which consumers will respond to their offerings, and where they can find them. A key tool utilized by marketers is market segmentations, with the aim of enhancing accuracy and investment efficiencies when reaching out to consumers.
The Traditional Approach
The main goal in any segmentation is to identify like-minded consumers who will adopt the brand. Upon close inspection, these segmentations are, more often than not, built around demographic variables, not mindsets. However, the primary drivers behind consumer behavior are mindset motivations, not demographics.
The result is the risk of excluding potential consumers of your product, who for all intents and purposes share the same mindsets of your core consumer base.
Predictive analytics promises to revolutionize the way marketing strategy for customer acquisition and retention can be executed, by empowering marketers with a more scientific and actionable approach to strategy development.
Why Predictive Analytics?
Planning in the fast lane usually takes a mix of subjective intuition, sorting through high incidences and degree of over-indexing to select from large pools of choices. For example, just picking the combination of three best TV networks for a new product, from say 150 networks, would require studying 551K possibilities.
Cross-tabs limit the choices humanly conceivable and don’t guarantee reliability. Predictive analytic modeling overcomes these problems because the algorithms are scalable to evaluate all scenarios with speed AND statistical predictability.
A look at a recent case study conducted by SSG.
Case Study: Media Planning & Network Viewership Expansion
Context: An English TV network will be airing a new series and needed to attract new viewers on a very limited ad/promo budget.
Business Challenge: Identify an actionable segment of non-viewers that could expand the existing pool.
SSG Solution: Using Predictive Analytic models, SSG mined a battery of hundreds of psychographic variables, identifying a segment that shared a similar psychographic profile, which the model indicated would be most receptive to our client’s content.
We also uncovered emotional drivers that defined this segment, informing the client what kind of message would resonate most.
Lastly, we used complex modeling techniques to find a finite number of networks, day-parts, and shows where these viewers could be reached.
All of the above allowed for the client to develop more targeted messaging and media selections, hence a more effective investment, leading to higher ROI.
Have a business challenge? SSG has answers.
SSG is a strategy consulting firm driven by management P&L experience and predictive analytics. We develop fact-based business models, growth roadmaps, insights and segmentations for the Total Market and the evolving Hispanics, Multicultural & Millennial segments. We help clients focus their limited resources where the highest market opportunities exist, and which strategies advance maximum, efficient Total Market growth.