Why Understanding Your Existing Shoppers Is Key
By: Will McGinnis
Key takeaways:
- Buying leads often leads to wasted resources, as only a small percentage are in the market.
- Understanding and utilizing first-party data from existing shoppers is more effective than pursuing unknown leads.
- Targeting households with tailored marketing efforts enhances conversion rates and customer loyalty.
- Personalized marketing experiences significantly increase the likelihood of consumer purchases.
- Focusing on existing visitors and maximizing communication with them is more efficient than buying leads.
Let’s say you’re the captain of a ship. You’ve embarked on a perilous journey through uncharted waters, but instead of relying on a trusted map and compass, you opt to buy a collection of random coordinates from a vendor in port. Sounds dangerous, right?
That's precisely what many brands do when they purchase leads; they’re purchasing the "treasure map" without understanding what the treasure is. One persons treasure may be another's garbage.
In this article, I'll delve into the reasons why buying leads won't necessarily lead to success. I'll back up my claims with use cases. I’ll also introduce a revolutionary approach that emphasizes understanding your existing shoppers, unlocking a treasure trove of engaged, in-market shoppers, and maximizing communication with them for increased results.
The Illusion of Success
The allure of buying leads is strong. It seems like a shortcut to success, promising access to a ready-made audience eager for your products or services. However, the reality is far from the dream. According to a study by Vorsight, only 56% of purchased leads are not in market to buy, of the other 44% ... only 3% are in market. When you invest time and money into these leads, you're essentially navigating your ship towards treacherous waters, where most of your efforts will be wasted.
Understanding Your Existing Shoppers
Successful organizations understand that the real treasure lies in understanding their existing shoppers. Instead of chasing after unknown leads or demographically populated lists, you can tap into the wealth of data you already possess about your current visitors. According to a study conducted by Forbes, businesses that prioritize data-driven marketing and customer insights are 23 times more likely to top their competitors.
Enhancing Interaction with Engaged and Unidentified Shoppers
This innovative approach focuses on three things:
- Building your true first-party data — in a cookieless world.
- Tailored-and-timed marketing to visitors more likely to convert.
- Household Immersion vs device only (ex: cookie’d, IP, MAID targeting)
By targeting these households with tailored marketing efforts, you can boost your conversion rates significantly. This not only saves you from the pitfalls of buying leads but also enhances your ability to connect with those most likely to become loyal to you.
The Power of Personalization
A study by Epsilon found that 80% of consumers are more likely to make a purchase when brands offer personalized experiences. Instead of wasting resources on cold leads, this approach empowers you to craft tailored messaging and offers that resonate with your existing shoppers at critical moments of research. This not only increases conversion rates but also fosters customer loyalty and brand advocacy.
In the competitive world of consumer marketing, buying leads may seem like a tempting method. However, the statistics and evidence overwhelmingly show that this approach is fraught with inefficiencies and wasted resources. To truly excel in this industry, it's crucial to focus on understanding your existing visitors and maximizing communication with them in those critical moments.
Success in 2024 begins with knowing your audience, and this approach is the compass that guides you to that knowledge, ensuring a journey filled with growth and prosperity.
fullthrottle.ai's AdTech is powered by patented technology that identifies your site visitors, tracks their journeys, and markets to the highest-propensity leads. If you’re ready to move beyond simple lists, book a demo with us.
