It could be one of the
strongest marketing tools you have; so what is behavioral targeting?
Simply explained, behavioral
targeting refers to a range of techniques and technologies that online
businesses and marketers can use to closely define and target audiences. These
tools collect important strategic data about customers’ shopping and browsing
habits while on a business’s website, including how they get there and what
links they click on.
When used correctly,
behavioral targeting strategies allow businesses to observe the online behavior
of their customers and then customize their communication with those customers
to match. This makes it a more powerful tool than the related demographic
targeting, which can focus on groups of customers but not the details
themselves.
Unless your online business caters
to a very niche market, behavioral targeting can prove a very useful tool. Most
ecommerce businesses cater to several different types and groups of customers
with different values and habits. With behavioral targeting, you can take all
of these details into consideration to deliver the best communication methods
available for your customers.
Different Types of Online Behavioral Targeting
Behavioral targeting is not a single thing that can be given a single definition. Instead, it is a term that comprises a variety of methods and techniques. Some of the most common of these methods that many online businesses use include the following:
Customizing
Deals – Online retailers can use
behavioral targeting to determine which of their products or services a certain
customer may be most interested in by seeing which page they visit most often. Once
they have a good idea which way customers are leaning in their prospective
purchases, retailers can then offer these customers personal deals on those
purchases. This can persuade customers to go ahead and make the sale.
Personalizing Websites – This is a popular
method utilized by many major ecommerce sites such as Amazon.com. By analyzing
which products a customer has shown the most interest in, online businesses can
determine which of their products it would be most beneficial to highlight for
those customers. They can then personalize their product highlights for each
customer based on these tastes. If customers see a selection of related
products next to their online shopping carts, they are more likely to include
them as well.
Personalizing
Email – Mass email notification can be
an effective marketing tool, but for many online customers it just looks like
spam in their inbox. To stand out among these impersonal messages, online
companies can personalize customer emails based on their movement around that
company’s website. By making the message instantly more relevant to the
customer, retailers increase their odds of the customer taking an interest in
it.
Remarketing – This type of online advertisement has proven to be a
revolutionary innovation in Internet marketing. Remarketing basically refers to
online ads that follow customers from site to site. Retailers analyze
behavioral targeting data to find which customers seem the most interested in
their products. They can then strategically purchase ad space on other sites
that display their marketing specifically to these customers. In this way,
online retailers can keep up unobtrusive communication with their customers
even after they have left the retailer’s site.
Privacy Concerns with Behavioral Targeting
While behavioral targeting is
a powerful tool, it is not without its controversies. Chief among these is the
distaste that many customers often have knowing that their personal data is
being collected without their control.
If you don’t use it right,
behavioral targeting can make your customers feel like you’re stalking them. And
if you’re too persistent with your communication to a single customer based on
behavioral targeting data, then you’re just going to look like a spammer and
drive away customers who might otherwise be interested in your business. It
becomes a fine line to walk; ideally, you want to do most of your data
collection anonymously, collecting only a shopper’s habits and not their
personal information.
If businesses do target one
customer specifically, make your communication brief, courteous, and to the
point. Don’t bombard customers with continuous marketing across all platforms
by spamming their email and making every ad they see based on your business.
With behavioral targeting, a little bit goes a long way.