If you’re still not familiar with the term “people-based marketing,” you’re not alone. It’s a relatively new term that many marketers are still wrapping their heads around despite the fact that most would assume all marketing is people-based marketing (it’s not). For years marketers have used third-parties to understand their target audiences. They’ve used details extracted from our Internet cookies and the like. But now there’s a new practice in town known as people-based marketing.

Essentially, people-based marketing focuses on the audience as an individual as opposed to a number or a pixel. Marketers learn who their audience truly is based on a myriad of factors. These factors use technology that’s also still new. Some of the information being gathered by marketers using people-based marketing techniques also faces challenges.

Read on to learn more about people-based marketing and how it’s changing the way marketing teams take on their audience.

New Sources Used with People-Based Marketing

Even though this technology is still new, marketers are accessing information from several locations. Some of these locations have been around longer than people-based marketing has been! If marketers are using other ways to understand their audience (as opposed to lumping them into groups) how are they getting this information? I’m going to discuss a few of the most used sources for data that marketers use.

Persistent Logins

As a society, we have to log in everywhere—social media platforms, work, school, and even into our own smartphones. These logins, known as persistent logins, are used by marketers to get a clear picture of their target audience. Marketers can see behaviors and habits specific to each consumer. This way, they’re able to build campaigns targeted to an ideal audience.

CRM Databases

Here is a source that marketers have been using for years—customer relationship management databases. They’ve accessed this information for customer service purposes and research. Marketers are taking this information and using it to create campaigns based on existing customers. Some of the things they can access include:

  • Product preferences
  • Customer contact information
  • Service preferences

Cross-device Identification

Cross-device targeting is another term that may be new to you. Think of it this way: you probably use a work computer, a personal computer, a cell phone, and maybe even a tablet. In other words, you’re accessing several devices each day. And if you think about it, you’re using different devices for different reasons. Maybe you search on your mobile phone but make a purchase on your tablet. Marketers have devised a way to essentially “follow” consumers across all their devices. This is done through the logged in data including device identifications and email addresses.

There are two different methods to attaining this information: deterministic and probabilistic.

  • Deterministic methods track users as they move between devices. For example, when you log into Facebook on your smartphone and then log into your account on your tablet, marketers are able to detect that you’re the same person.
  • Probabilistic methods use data driven models to determine how consumers use their devices. Ad tech companies take data from ads on all devices. Usually data such as IP addresses and WIFI networks. They’ll look at all devices connected to that IP address or WIFI network and presume the consumer is the same person. While this isn’t as accurate as deterministic methods may be, it’s still a popular approach used by larger marketing firms.

Geolocations

Here’s a very new age way of targeting customers—geolocations. You may be thinking, “What does a consumer’s location have to do with targeted marketing?” It actually has a lot to do with it. Think of it this way: you’re walking through the mall with no intention of purchasing anything. However, you’re scrolling through Facebook or your email and receive a notification that there’s a sale at the store near you. That’s exactly how geolocation helps marketers reach their audience in a place they’re least likely to say “no” to a purchase.

How do marketers get this information? Every time you log into your social media accounts or other mobile apps, you’re essentially providing information about your location. So long as location services are turned on, marketers can access this data through third-parties.

Note: Interested in turning this off? Our social media services can help.

Challenges for Marketers

As with any change in an industry, marketers are faced with challenges while using people-based marketing. I’m going to touch on a few of the major challenges here, though this list is not all-inclusive.

Gathering Data

As you know, third-party data has been gathered by marketers forever. Gathering data from first-party sources is a bit trickier. For example, most marketers find their first-party data through tools that Facebook and other social media outlets provide them. Things like email, for example, isn’t gathered any other way. Most firms are pulling this type of data not only from Facebook and the like, but their own personal source—the information they’ve gathered from the past and current customers. While technology is changing to allow easier access, marketers are still finding this to be one of the challenges in people-based marketing.

Privacy Concerns

Probably one of the toughest challenges marketers face when utilizing people-based marketing is the issue of privacy. Consumers are still warming up to the idea of their data being shared among large companies—and they believe it to be a breach of privacy laws. In fact, in 2015 52% of Americans felt “very concerned” about the government and other entities having access to their data. 86% of Internet users believe they’re able to browse online anonymously—and have taken steps to hide their footprints online.

With these concerns, it’s harder for laws to change on behalf of marketers and marketing firms. Until consumers as a whole decide that there’s worth behind acquiring this information, nothing will change. Marketers will have to show how it will benefit their consumers.

The Takeaway: Looking Towards the Future

It’s no surprise that we’re becoming a more digital society. Along with this change, marketers are realizing targeting the audience behind a TV screen isn’t enough—they have to move digital. Thanks to technology, they’re better able to reach specific audiences with the help of people-based marketing. And while technology is still changing, consumers are slower to adapt to this new type of method. Marketers will have to continue keeping up with the trends as we move into a more digital society.

What do you think of people-based marketing? Do you think marketers are moving in the right direction? Let us know your thoughts in the comment section below.

Photo Credit: bandt.com.au