Wouldn’t it be great if you could take your most valued customers, analyze and understand their behaviors, then find more consumers like them? Well, you can. And it’s not magic; it’s look-alike audience modeling.
According to Lotame, a leading data management platform (DMP), look-alike modeling is a process which locates groups of people (audiences) who look and act like any of your target audiences. Put simply, look-alike modeling analyzes your current customer, identifies the key characteristics, and finds similar people.
By finding audiences with behaviors like your target audience, you can improve your campaign’s overall reach, raise brand recognition and have a greater chance to convert new customers in the future.
A study by eXelate showed that 73 percent of U.S. ad agencies and 64 percent of advertisers use look-alike modeling to enhance their targeting and marketing focus. Additionally, of the agencies using the strategy, nearly 50 percent saw between two- and three-times better performance of campaigns. While look-alike modeling is by no means a new tactic, we shouldn’t underestimate the value it provides within a prospecting and performance basis.
Onboarding data to an advertising campaign produces better results. A recent study conducted by Forrester Consulting found that “sales driven by new customers were 2.5 times higher following data onboarding than in previous campaigns” due to look-alike modeling that enabled the organization to target advertising to prospects that resembled its best customers.
As an affiliate of Advance Local, we have access to data from the world’s largest data providers to identify audiences across various marketing channels. In addition, we have the capability to suppress your current customers, so they do not get a competing acquisition offer.
The good news is that all businesses can benefit from lookalike audiences.
Not sure how to start? We can help. The best place to start is with a Customer Relationship Management (CRM) tool. With a CRM, you can store customer and prospect contact information, sales data and more in one central location. If you don’t have one in place, no worries. We can simply place a pixel on your website which allows us to collect information on your customers.
Next, we’ll onboard your data to a DMP and enrich it with additional attributes from third-party data providers. By analyzing demographic and behavioral similarities against a larger data set, we’ll be able to find people who “look like” your customers. We can use this lookalike segment across multiple marketing channels in the campaign, such as display, video and mobile. It’s important to note that look-alike modeling isn’t a one-and-done type of analysis. It’s important to always update the modelling with fresh customer data.
In short, look-alike modeling takes your current customer segments and expands on them based on their behavioral and demographic characteristics. It is an approach that helps business owners reach new consumers. You’ve got great customers today, but there are so many more just like them out there, beyond your CRM. Let us help you reach them with look-alike modeling. Contact us today to begin!