Customer Value: Narrowcasting vs. Broadcasting

Virtually every brand we’ve met with in the last few months is hungry for new customers, the war for the customer is on. For more on growing your customer base, consider reading “Bigger is Better, How to Scale Up Customer Acquisition Smarter” an article we published recently about how to grow your customer base. Many organizations are hooked on customer acquisition. That is, in order to hit sales plans for the organization, new customers will be required in large numbers. It’s about as easy to kick the ‘acquisition addiction’ as it is to kick any other for most brands. Try going without coffee suddenly, and see how your head feels. It’s not very different from reducing a business’s dependence on customer acquisition as a means to achieving revenue and profit targets. Organizations that need ever larger numbers of new customers to achieve growth goals eventually will find the cost of acquiring incremental net new customers can become prohibitive. Broadcast vs. Narrowcast The traditional model for advertising and customer acquisition has essentially been a broadcast approach, reaching a large audience that is generally descriptive of the customer a brand believes to be a fit. Contrast this with what is sometimes described as a “narrowcasting” strategy. Narrowcasting utilizes Customer Intelligence to understand a great number of discrete dimensions that a consumer possesses and can leverage statistical methods to validate the accuracy and predictiveness of targeting customers through these methods. The chart below, depicting the value of customers acquired through traditional broadcast capabilities upfront and over time, helps illustrate why “broadcast” strategies for customer acquisition alone aren’t enough. Broadcast Acquisition Strategies Lack...

Increase Your ROI: Tap into Tablet Shoppers

Twenty one percent of mobile sales come from tablets.1 As people are spending more time online due to devices such as iPads and tablets, especially online shoppers, it’s time to consider optimizing your business’s website to capture these consumers. The graph below shows the huge growth potential that lies within the tablet economy, including a projected 35.6% of internet users to be tablet users by 2014. Tablets are preferred over smartphones for web shopping.2 The reason for this includes the fact that web shoppers opt for larger screens offered by tablets as opposed to smartphones, making it easier to use and view items in a web browser. We’re in an app world now. Tablets are used for much more than just web browsing devices. Apps also aren’t just web-browsing tools, but an in store experience. Tablets allow you to bring the store and the experience to your home, inside your living room as you’re sitting on the couch relaxing after work. According to Geek.com, a record 1.2 billion apps were downloaded during the last week of 2011, and 509 million in the US alone.Of those surveyed, the number one online shopping app downloaded was a retailer specific app.3 What this means is it’s important that retailers configure their websites so they display properly on tablets for ease of viewing.Here are a few ways to optimize retailer sites for tablet shoppers:   Identify activity and volume of your site During this step you want to use and understand in-house metrics to identify the main platforms through which consumers visit your website, such as tablet, PC and mobile. Also, it is important to do...

Bing… “Because It’s Now Growing.”

From near obscurity, Microsoft’s Bing search engine now powers 30% of online searches, according to our friends at Experian/Hitwise. This is of interest, given we still see a material number paid search buyers optimizing for “Google only.” While some of our friends at Google like to say “Bing…  But It’s Not Google” –Bing now represents almost one-third of searches now. With a substantial 6% increase from March 2010 to April 2010 search marketers that ignore it do so at a considerable risk. We suggest to Clients… Bing could well require more of their attention “Because It’s Now Growing”   Google’s dominant 64.42% share of search, still produces the majority of traffic and search marketing results. That said, could the day where Google falls to below 51% fast approaching? At Endai we generally don’t think so. Google’s investments in mobile alone stand to produce increases in search traffic, where the Android mobile phone OS is already a player with about 30% of the market, surpassing Blackberry from behind –and searches on Android are of course delivered by Google. Nonetheless, here in the Endai Search Center of Excellence, we’re aggressively watching and measuring...

Google’s Androids Run Free… Oracle Says, Not So Fast…

Oracle has filed suit against Google alleging patent infringement on it’s new asset, Java. If you didn’t know, the Android mobile OS is run in part on a Google modified version of Java. Oracle says this is a no-no.   As we regularly see now in online marketing data through Google Analytics, mobile usage of B2C and B2B sites alike are on the steep incline. Even more so when sites are designed in a manner that renders on mobile browsers (no Adobe Flash for starters).   As a free OS alternative for phone manufacturers and carriers, we’d have to assume it will continue to grow, the outcome could be important.   See the rest of the story here –we’ll keep you posted at the Endai...