15 Sep 2011: Organisations should be structuring their behavioural targeting of customers based on their channel preferences rather than simply on demographics, according to a new report by business analytics outfit SAS and Professor Hugh Wilson of Cranfield School of Management.

The majority of marketers currently base behavioural targeting on customer segmentation by demographics but the explosion of online and offline channels means there are now new more successful ways to segment customers based on channel preferences to ensure long term success, say,s the report.

Dr Charles Randall, solutions marketing manager as SAS UK, explained: “Marketers need to develop a single customer view that goes beyond marketing to touch every single customer facing department, from individual retail outlets to accounts payable. The ability to analyse all of the information about customer preferences and behaviour will ensure that targeted marketing strategies and the channels used, are relevant to the individual and more likely to have the desired impact.”

Through its recent study with market research company MESH Planning, over 500 consumers were asked to text in their experiences of different brands across 10 channels. SAS used the results to develop six distinct customer profiles including:

Lifestyle junkie

This group has a positive attitude towards brands and marketing in general and is open to communications across most channels with the exception of call centres. It is 7.4 times more aware of magazine advertisements than the average consumer but 36% less responsive to sponsorship.

Astute alpha

These consumers do not respond well to uninvited outbound communication so use of a product is the best way to engage with them. Astute alphas prefer brand contact that they can control such as face-to-face conversations and online engagement. As a result, they are 5.3% more aware of call centre contact than the average consumer.

Internet investigator

This customer segment is the most avid online user, internet shopper, product researcher and user of expert recommendation sites. Members of the group turn to family and friends for input and advice so are 2.7 times more aware of conversation than the average consumer but 40% less responsive to text messages.

Dedicated fan

The dedicated fan notices brand presence online but is only strongly engaged by sponsorship so is 15 times more aware of this than the average consumer.  This group has 14.4 brand encounters each week and turns to a support network of those with similar interests for advice before purchase.

Social shopper

This group shows the heaviest text message, online and direct mail engagement as well as being an active in-store shopper. It is 1.8 times more aware of online communications than the average consumer and use word-of-mouth percent more than the average consumer.

Detached introvert

This type of consumer is not particularly engaged with brands so the most effective touch points for marketers are ones that consumers comes across within the context of day-to-day activities.  Detached introverts only have 2.7 brand encounters per week on average and only demonstrate a 0.2% response to advertising.

Randall continued: “Marketing will only have the desired impact if it is relevant to the customer and a big part of this using the right channels to target each individual. With so many different channels for communication now available, organisations need to change their mindset from focusing on what to sell each customer to how to sell products effectively. Only a combination of these two influences will positively impact the bottom line. After all, great conversations with customers need to be relevant to have an impact but relevance differs between individuals.