by Frank M. Waechter | Branding and Marketing, Communication, Communications, Content Marketing, Digital Marketing
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.
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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.
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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.
by Frank M. Waechter | Content Marketing
In the past, people would swarm their websites with advertisements to attract new clients. However, ‘salesy’ content no longer appeals to customers, and any forward-thinking marketer has to embrace a long term content marketing strategy. If you have not incorporated content marketing into your business, you are missing out on many benefits. Read on to know more about content marketing and its benefits to your business.
What Is Content Marketing?
Content marketing uses engaging pieces of content to attract customers instead of pitching products or services. The approach focuses on creating valuable content consistently to retain a clearly defined audience while driving them into action.
Traditional advertising methods may be useful, but they capture the audience’s attention for a short period. Besides, they do provide less value, and customers do not have a reason to stick around. Blog posts give customers informative and engaging content so that they can stick around for more. By the time the user decides, you will be their go-to site for information and products.
What Are the Benefits of Content Marketing?
Many businesses are wary about splurging money on content marketing because they do not understand its benefits. Getting people to think highly of your brand sounds exciting, but what other benefits of content do you get?
1. Increasing Site Traffic and SEO
In the past, most websites used keyword stuffing to improve their rankings on SERPs. However, with search engines improving their algorithms frequently, a website cannot thrive with low-quality content. Content marketing provides high-quality content that will enhance your rankings. Statistics show that businesses that combine great content with intelligent marketing strategies improve their search rankings. For instance, top blogs get 66.47% traffic from search engines due to high-quality content. With consistency in publishing valuable and relevant content, customers are likely to find your website. Repeat visitors will also share your content through their social platforms and drive traffic to your website.
2. Strong Brand Visibility
In digital marketing, businesses have to earn their customers’ respect and trust to make sales. Valuable content introduces you to potential customers and increases your online visibility. A strong brand personality will shine through your content, and you will carve out a market segment for your products. You can inject your personality through eccentric content like videos, infographics and strong calls to action.
3. Helping Customers With Purchasing Decisions
Customers go through a purchase funnel before buying your products. The decision to buy an item begins with searching for information on search engines or seeking referrals. Therefore, if you have high-quality content that provides relevant information, prospective buyers will land on your site. An excellent content marketing strategy will speed up the buyers’ journey, and they are likely to buy from you. Another way of influencing your customers’ purchase decisions is through the sales funnel. However, the process is slow, and the conversion will take a long time. Highly targeted content will help your potential customers to make up their minds faster.
4. Positioning Your Site as an Authority and Thought Leader
Digital marketing is levelling the playing field between giant companies and small start-ups in the same niche. Small businesses can compete with others by creating valuable content. However, if you want to increase your products’ visibility, you need to establish a footprint in your niche. You can use different types of content to engage and educate your audience. People will be more receptive to your products if they have contact with your brand through content. Besides, brand authority builds trust, and you can increase sales by converting readers to buyers and repeat customers.
5. Increased Sales
Nowadays, people are blocking ads that pop up on their browsers. Therefore, businesses need to find additional ways to generate sales. Creating a blog for publishing content is a great way to create new leads. High-quality articles will invite your target audience to engage with your products. This engagement allows you to convert readers with minimal effort. You can also use content to increase subscription to your mailing list, where you can provide personalised marketing and improve your sales.
6. Improving the Relationship With Your Audience
Content marketing allows you to focus on a specific segment of your audience. You can use your targeted content to guide new prospects through the buying cycle and lead them towards conversion. As you engage your audience, your bond will become stronger. If you nurture the relationship, your audience will be repeat customers and advocates for your brand through social shares and referrals.
7. Fuelling Your Online Marketing Channel
There are many popular types of content marketing media, including blog posts, videos, infographics and press releases. These pieces of content can fuel various marketing channels in your business. For instance, a single blog post can attract social shares, and you can feature it in your weekly newsletter. You can also use the post as gated content, where readers fill out a form to capture leads and collect data.
8. Improving Your Social Following
Referrals are any online business’s dream since 82% of customers seek recommendations from a friend before purchasing a product. Therefore, you can improve your website’s online presence by providing useful information that customers can share on their social media platforms. If you have a sizeable following, but you are not converting sales, you should also use content marketing to gain traction on social media. Ensure you maximise the value of your content through campaigns and tracking its performance.
9. Generating Leads
You can use your content marketing campaign to generate leads through calls-to-action that encourage customers to make informed decisions. For instance, you can guide customers to your landing page or another article that could provide additional information. If your customers enjoy your content, they will likely click the CTAs and proceed to make purchases.
10. Improving Your Conversion Rate
Sometimes you generate many new leads through your sales funnel, but your conversion rate is low. That can be detrimental to your marketing efforts. While various factors affect conversion rates, you can leverage the benefits of content marketing to improve conversion. Use high-quality content to answer questions about your products, improve your brand’s personality and highlight the benefits of choosing your brand.
Harnessing the benefits of content marketing will help you improve your brand’s visibility and increase your ROI. Your website will be authoritative and a valuable source of information in your field. You also have an opportunity to expand your reputation and invoke loyalty among your audience.