Shopper Marketing - July 2016 - 123


marketers' appetite for the digital ad medium.
A recent eMarketer report, for example, cited a
Duke University study in which CMOs across
multiple industries - from healthcare, banking and
technology to retail, manufacturing and consumer
packaged goods - said they planned to increase their
digital marketing spending over the next 12 months
by anywhere from 8-22%. These same companies
plan to reduce their traditional ad budgets by as
much as 7-12%, according to the study, while upping
their overall marketing spending in a wide range:
anywhere from 1-20%.

From Personalization to Precision

Clearly, there is a widening gap between what
marketers consider to be "personalized" and what
consumers perceive as relevant. Many of us have
experienced this in our everyday lives. You may
casually browse an online retailer just once and be
bombarded for the next several days by overtures
from the company as if you were a loyal customer.
Just think about all the "exclusive for you" branded
promotional offers delivered through our e-mail
inboxes or favorite web pages that end up ignored or
discarded as if they were the equivalent of spam.

DUE DILIGENCE: The Data Audit
If you ask any marketer, "How well do you know your customers?" you're likely to raise a few
eyebrows. The truth is, it is difficult to get an objective answer to this question. Experts in the field
have a suggestion: Start by looking at the data.
"The reality is, most CPG companies have very limited and inconsistent information about their
customers. Their databases are relatively thin," says Mark Hertenstein, Senior Vice President of
Enterprise Solutions at Epsilon.
A food manufacturer, for example, may have captured a customer's name and e-mail address
when he or she downloaded a recipe or signed
up for a promotion. Often times, however, that's
where the data trail stops. A brand may have
a basic demographic profile of its user base,
thanks to first-party research from the likes of
Nielsen or IRI. But it must then work with a thirdparty vendor like Epsilon to create additional
contact points and a deeper understanding of
those consumers, Hertenstein says.
"Now you not only know where they live,
but what type of house they have, how many
kids, their hobbies and interests," he says.
"Do that across your database, and then you
have something to segment. Are they budget
strapped? Health conscious? The deeper you
go, the more meaningful the segments you can
create."
Have marketers done their data audit? Here are five key questions to ask:
1. Do you have a sense of who your shoppers/consumers are or could be?
2. Have you appended that basic profile with third-party data to complete
the view of the consumer?
3. Are you distinguishing data for insights and data for action?
4. Are you connecting your message to the transaction?
5. Is your messaging driving the consumer towards a purchase?

3



Table of Contents for the Digital Edition of Shopper Marketing - July 2016

Contents
Shopper Marketing - July 2016 - Intro
Shopper Marketing - July 2016 - 1
Shopper Marketing - July 2016 - 2
Shopper Marketing - July 2016 - 3
Shopper Marketing - July 2016 - Contents
Shopper Marketing - July 2016 - 5
Shopper Marketing - July 2016 - 6
Shopper Marketing - July 2016 - 7
Shopper Marketing - July 2016 - 8
Shopper Marketing - July 2016 - 9
Shopper Marketing - July 2016 - 10
Shopper Marketing - July 2016 - 11
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