Targeting Mindsets as a Function of First-Party Data Analytics

Targeting through demographics is so 1995.?Or so we’re told in today’s digital world, where we can track and target using any number of approaches, from contextual to behavioral through to derived intent.?There's so much data available! Sometimes, however, you want to target based on a consumer mindset, as this article (https://www.mediapost.com/publications/article/365350/consumer-mindsets-matter-understanding-the-why-be.html?) points out.?

I had a little trouble following how the author leaped from Amazon disrupting brick-and-mortar to consumers buy on more than price and quality all the way to “Brands can’t inspire long-term loyalty if they don’t know their audience members’ identities, interests, and motivations.”?I find that a tough one, unless you’re targeting a very narrow audience and specific type of consumer. But I digress.?What I did agree may be sometimes useful is

“…the importance of targeting consumer mindsets instead of demographics.”

I think first one has to make a distinction about what types of brands we are discussing.?Is it CPG, restaurant, specialty or mall retail, e-commerce??There isn’t a single approach that covers all potential situations.?Many physical retailers, especially those selling a wide variety of consumer brands like grocers or big-box chains, will still drive the majority of their traffic based on convenience, price and quality.?Some specialty retailers, including many e-commerce players, and more likely those selling own-brand products, may align more with their target consumers based on shared values. For many branded products, positioning will be the key to driving consideration, and that requires some different thinking.

Back to targeting consumer mindsets.??We’re talking about targeted marketing here, not mass marketing.?And the word targeting suggests audience selection rather than content.?“Targeting mindsets allows brands to connect with consumers on an emotional level…” might be better stated as “…personalizing communications based on targeted mindsets may allow brands to connect with consumers on an emotional level.”

The other change I would make to the author’s argument is in “how to target consumer mindsets.” The stated approach suggests using consumer research as a primary tool, which can be valuable but doesn’t allow you to project against a broader population, unless you’re doing something like… using broadly known descriptive data, such as demographics.?I might suggest there are better approaches, and here's one: start with hypothesis development, utilize analysis of first-party data to validate hypotheses, and develop an in-market test strategy and longer term use cases.?Here is one example:

Several years ago, we were working with a subscription-based service provider. They were very concerned that when they received an inbound telephone call, the consumer was calling to cancel the service.?We hypothesized there were two types of cancels: those who were taking a temporary break and would be likely to re-enroll at some point in the future, and those who were dissatisfied with the service and who, once cancelled, would never be heard from again.?We called those “soft cancels” and “hard cancels”.?By digging into customer data, including enrollment details, and service and payment history, we were able to validate that we could differentiate between these different types of cancels, and that based on enrollment source, timing, and particulars of service calls and payment promptness, we could identify each customer as a potential hard cancel or a potential soft cancel – before they called. Meaning we could set up a pro-active retention program that was tailored to the mindset of each type of customer, communicating with them based on the things that mattered to them.

What does that suggest? As said above: Start with hypothesizing or performing research into different mindsets, develop inferences about how you might be able to isolate consumers with various mindsets by peering into first-party data, and utilize what you’ve learned to develop campaign strategies and tailor content.

Taking that approach will bring to life the author’s final line: “By developing a mindset-based marketing strategy, brands can better resonate with their audiences and increase consumer loyalty.” Analytics-driven marketing always means putting what you've learned into action.