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In marketing technology, it’s important not to get carried away by your own spin. Behavioural targeting sounds quite complex, but the idea and the source of the uplift is really quite simple and it happens in the real world every day.
Picture your favourite restaurant. If you’re lucky enough to have a switched-on wine waiter, he will remember the wines you’ve enjoyed in the past and intelligently suggest new vintages as they come onto his list.
You can rely on him to make good recommendations based on your past consumption history.
If our wine waiter is also commercially astute, he’ll spot that you enjoy a good Shiraz and might recommend a superior vintage on your next visit.
Naturally this superior year’s wine will come at a higher price but by noting what you enjoy and making a further appropriate recommendation, he has increased his revenue (and possibly his tip).
Behavioural targeting isn’t about selling people what they would have bought anyway - if our waiter always simply recommended exactly what we ordered last time, we’d soon get bored.
It’s about optimising up sell and cross sell; that’s how revenues can be driven upward.
Online, behavioural targeting monitors user behaviour over time and serves relevant content on present and future visits.
Those that have browsed or purchased product A in the past may be more likely to go for product B this time.
By applying personalisation and customer intimacy online, sales and other key metrics will increase dramatically.
Mark Simpson is the MD of Maxymiser Content Intelligence.