Blog September 08, 2023 |

The Science of Similarity: How Lookalike Audiences Redefine Retail Audience Targeting

In today's rapidly evolving consumer environment, hearing and understanding your customers has never been more crucial. With deeper insight into your existing customers, you can enhance your ability to capture the attention of potential customers. Fortunately, harnessing first-party data to boost brand awareness has never been easier, especially with BlueConic!

As a deep dive into my article from last month, I wanted to explore the top of the funnel a little. How are retailers using BlueConic to identify and target relevant, unknown audiences (those that have not identified themselves) and drive awareness? One powerful strategy is lookalike audience targeting, which involves identifying and engaging with individuals who share similar characteristics, behaviors, and traits with an existing target audience or customer base.

Imagine the ability to reach new customers across channels who share striking similarities with your existing ones – that's the essence of lookalike audiences. By analyzing your first-party data using advanced algorithms in BlueConic, you can identify patterns and characteristics common among your high-value customers. The result? A pool of potential customers who are more likely to be interested in your products, helping you expand your customer base organically.

The beauty of this strategy lies in its precision. Rather than casting a wide net and hoping for the best, you're strategically expanding your reach while staying relevant to your target audience. The benefits of pursuing lookalike audiences are countless, but here are a few:

  • Improved Audience Precision: Through attribute analysis of current customers or audiences, retailers can leverage first-party data to precisely target campaigns towards individuals who are more likely to have a genuine interest in their products or services. Retailers may already be doing some of this using lookalike modeling on various activation platforms, but the efforts with the power of your first-party data is taking it to a whole new level. Strength in similarities!

  • Increased Conversion Rates: As expected, potential customers are more likely to respond positively to messaging and offers, as they have similar preferences and needs as your current satisfied customers. Outcomes vary by customer but realizing double-digit growth in conversion is not unheard of with BlueConic’s customers!

  • Cast a Wide Net, Precisely!: Instead of limiting your campaign to only those who have interacted with your brand before, you can tap into a new pool of potential customers who share characteristics with your existing audience. 

  • Reduce Ad Spend Waste: No more shotgun approach! By targeting individuals who are more likely to convert, you reduce ad spend wastage on audiences that are unlikely to engage with your content. This optimization can result in cost savings while maximizing your return on investment (ROI). 

  • Learn and Adjust Quickly: Since you're targeting audiences that already exhibit similar behaviors to your existing customers, your campaigns can often achieve results more quickly, enabling you to make data-driven decisions and adjustments to your campaign strategies sooner.

  • Personalized Messaging: Yes! Leveraging real-time consumer behavior on your first-party channels and tailoring your marketing messages to resonate better with lookalike audiences is completely possible and can enhance the overall customer experience and engagement with your brand. All while discovering what works for unknown but high potential audiences.

If you're a retailer that has not yet tapped into the potential of first-party data to activate lookalike audiences, then you are missing the boat. The synergy between these two elements has the potential to revolutionize your marketing game, drive brand awareness, and elevate your campaign outcomes.

If you have already started utilizing first-party data and lookalike audiences, I'd love to hear about your experiences and successes. Please feel free to reach out for a more involved discussion!

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