What if we told you that you could convert more leads and predict customer behaviours? All you have to do is divide your audience into smaller groups. However, you have to find the right groups. In other words, you need to find cohorts.
Cohort marketing is a way of dividing your audience into groups that have similar characteristics. By doing this, you can get a better idea of what your customers want.
To learn more about cohort marketing and how you can implement cohort marketing into your advertising plan, keep reading. We’re going to share everything you need to know.
What Is Cohort Marketing?
Cohort marketing is rooted in cohort analyses. Both practices focus on the evaluation and understanding of a particular group of individuals. When it comes to cohorts in advertising and marketing, a marketer is going to analyse what a particular group responds best to.
Based on the cohorts shared characteristics, activities, or thoughts, marketers can improve their campaigns. Specifically, they can gear campaigns in the right direction based on the audience of people that they want to reach.
What Are Cohorts in Marketing?
A cohort is a group of people that have something in common. They could be the same age, identify with the same gender, live in the same place, or have something else in common.
A marketing cohort is a group of people that have characteristics that you want to seek out. For example, a pharmaceutical company may want to market to a specific age group or a group of people with the same condition. These groups are cohorts.
Dividing your audience into these groups can help you create more meaningful marketing materials that are more likely to interest the group that you’re marketing to.
Why Is Cohort Marketing Effective?
Cohort marketing allows you to divide your audience into smaller groups. You get to focus on fewer people that have more things in common. Therefore, your marketing team will have a clearer idea of what kind of marketing materials to prepare. However, there’s more to cohort marketing than that.
Convert More Leads
As we said, your marketing team will have fewer people to think about. At the same time, they’ll have a clearer idea of the kind of person that they’re marketing to. Thus, they’re more likely to choose the right marketing materials and interest more customers in your business.
In the end, cohort marketing can lead to a higher lead conversion rate. Your marketing team will be making more targeted advertisements, leading to more interest in the targeted groups. This bulletproofs your marketing strategy.
If you see an advertisement that’s specially made for you, you’re more likely to react positively to it. The same idea goes for the leads that your marketers are going to target with cohort marketing. They are going to be more likely to react positively to advertisements that you’ve geared towards their interests.
Predict Customer Behaviours
If you divide your audience into smaller groups, it’s going to be easier to understand the habits and behaviours of each individual group. Thus, you’re going to understand your audience as a whole better.
When your marketing team is creating marketing materials related to a specific group within your target audience, they’re going to be able to better understand that group’s reactions. By examining past behaviours, your team can make better choices when they’re preparing posts and ads.
This may also help your business understand its revenue patterns as well. If you can understand purchasing decisions and habits, you can better predict when particular groups will convert or make additional purchases. Then, you can revise your timing and posting habits to reflect these shifts in revenue and activity.
Increase Return on Investment (ROI)
ROI is one of the best ways to determine whether or not a specific kind of advertising is working. It can tell you whether or not you should continue with your current habits or move on to another method of marketing. Cohort marketing comes with a higher ROI.
Your marketing team will be able to make better decisions with access to more information about their audience, so they’ll be able to pull in more leads and customers. In the end, these people are going to be more likely to make first and repeat purchases from the company. Thus, the company is going to make more money from these advertisements.
How to Apply Audience Research to Cohort Marketing
In order to understand each cohort that your business is targeting, you need to make sure that you’re considering the right metrics. You need to understand your cohort’s preferences, behaviours, and more. You can learn all about your cohort through cohort analysis.
There are five main metrics that you should keep in mind:
- User retention
- Revenue per cohort
- Customer lifetime value
- Customer engagement
- Marketing channel metrics
By paying attention to these numbers, you can learn more about your cohort and the kinds of activity that you can expect from each individual. You can also track these metrics over time to see if there are any changes as your marketing becomes more personalised.
How to Divide Your Audience the Right Way
The way that your company divides its audience is going to depend on the kinds of people that your business is trying to target in its marketing. Some companies divide their audience into age groups to change their kinds of marketing while others divide their audience by location to divide marketing between different stores.
Sometimes, the process of dividing your audience may take trial and error. To get started, think about the way that your marketing team decides to market to your audience. How could they make their marketing materials better and more personalised?
Cohort Marketing – Where Do We Start?
Cohort marketing is one of the most undervalued kinds of marketing strategies. Many people think that target their audience is enough even if it fails them over and over again. If you’re looking to help your business grow, you should get in touch with me. I look forward to helping you with your digital marketing plan.