In the past it was a daunting task for marketers to use data to define and target their audiences correctly due to consumer data being minimal and hence, not easy to segment and create a target audience profile. Marketers had to use less ideal marketing practices, which included sending unsegmented emails, cold calls, and ads. Which consumers ignored for the most part.
You can tell how ineffective and costly this approach was due to organizations not leveraging consumer data during their marketing and consequently, sending emails that weren’t strategically targetted. Quite a waste of marketing resources, right? McKinsey writes that companies that leverage customer data outshine their competitors by 25% in Gross margins, and by 85% in sales growth.
There needed to be a breakthrough in marketing. There needed to be a shift from finding the right customer for the product to finding the right product for the customer. Getting over a “make-and-sell” philosophy and giving in to a customer-centered “sense-and-respond” philosophy. The solution? Behavioral marketing.