Target Marketing Analytics: Using Demographic Data to Select Target Markets

Target Marketing Analytics: Using Demographic Data to Select Target Markets Genevieve owns a booming plastic surgery clinic in Santa Fe, New Mexico. She is specialized in the restoration, reconstruction, and alteration of facial and body aesthetics. In the past ve years or so, she has noticed a surge of older people (aged 65+) retiring in her renowned city of Pueblo-style architecture, Santa Fe. 50, she decided to study her target market. Understanding her audience composition in terms of age, gender, and lifestyle would enable her to develop creative content on her website, buy the right media channel to communicate her messages, and target the accurate target market through marketing and remarketing campaigns. But, as a surgeon, she has neither the experience nor the time to do this on her own. So, she called a friend of hers, a university professor, and asked her to recommend a top marketing student to do this analysis. You are chosen from among 540 students. You begin by suggesting analyzing Genevieve's website users in order to gain an accurate picture of the composition of her target market. Figure 1: Age, bounce rate, and conversion rate Acquisition Online Behavior Purchase Users Who User Users Who Viewed Bounce Pages Duration (on Were Ecommerce Age All Users New Users Viewed per . . REVENUE Conversion Only One Rate avg.) In Engaged In a User . Rate Page Seconds Transaction 18-25 4500 1200 400 4 90 185 $25,000 26-35 6000 2400 600 5 120 550 $50,000 36-45 1000 300 250 3 70 30 $20,000 46-55 800 200 80 3 60 20 $15,000 56-65 500 50 30 2 45 5 $10,000 66+ 300 25 15 1 25 1 $500 1. You suggest that the first item to be analyzed should be the bounce rate. The bounce rate is the percentage of visitors to Genevieve's website who, after viewing one page, navigate away from the site. A high bounce rate is an indicator that a homepage is boring or repellent. In order to obtain a low bounce rate, Genevieve has to improve the design of her website by making custom changes to its setup. According to various age groups, you calculate the bounce rate by dividing the number of users who viewed only one page by the number of new users (use the data in Figure 1). What did you find? Users Who Users Who Were Viewed Only 1 Bounce Rate Engaged in a Page Transaction Ecommerce Conversion Rate CF35,35,50,45,60,65 'F 33, 27, 81, 43, 58. 63 CF33,25,83,40,60,60 '7': 30,30, 59, 45, 55. 68 2. You also noted that the effectiveness of conversion marketing is measured by the conversion rate, the second variable that you need to track and analyze to determine the target market. The conversion rate is the percentage of new users who were engaged in an online transaction. In other words, conversion marketing is the act of transforming website visitors into paying clients. In case the conversion rate is low, you suggest some practices to improve it. For example, if a prospect abandoned a cosmetic item in the online shopping cart, then the clinic may offer a special (or targeted) offer, such as free shipping, or chat online with the visitor to answer questions or concerns in an attempt to convert him or her into a paying customer. Using user-generated ratings and reviews to transform visitors' concerns into assurances may also increase conversion rates. Conversion marketing is a benecial way to enhance not only conversion rates, but also website traffic and online revenues and profits. According to various age groups, you calculate the conversion rate by dividing the number of users who were engaged in transactions by the number of new users. Using the data in Figure 1, what did you nd? A 15, 23, 1o,1o,1o,4 A 25, 20, 12, 16,18, 8 A 20, 23,10.10.10.6 A15, 25,12,12, 12, 2 Figure 2: Gender, bounce rate, and conversion rate Acquisition Online Behavior Purchase G nd r All u ers New Users Uf'vggo Bunce VET/12:5 er Dwxfhm US$623?!) REVENUE 3335: e e 5 Only One Rate p avg.) in Engaged in a User . Rate Page Seconds Transaction Male 2000 500 200 3 90 50 $15,000 Female 4000 1900 400 4 140 500 $35,000 3. If you drill into the target age group, what would be the bounce rates for males and females? (Use the data in Figure 2.) 1 Users Who Users Who Were Viewed Only 1 Bounce Rate Engaged in a Ecommerce Conversion Rate Page Transaction I\" 82, 34 If) 82, 32 CI 40, 34 I\" 40, 21 4. If you drill into the target age group, what would be the conversion rates for males and females? (Use the data in Figure 2.) If) 8, 16 C10, 16 I\" 10, 26 08,12 Figure 3: Lifestyle, bounce rate, and conversion rate Acquisition Online Behavior Purchase Users Who Pages User Users Who Lifestyle Bounce Ecommerce All Users New Users Viewed Only One Rate Viewed per Duration (on Were avg.) in Engaged in a REVENUE Conversion Page User Seconds Transaction Rate Avid Shoppers 500 200 100 4 80 25 $2,000 kitchen strangers 2000 1000 75 5 140 350 $20,000 constraint shoppers 300 100 75 3 30 10 $1,000 hurried shoppers 700 500 100 3 80 100 $10,000 unfettered shoppers 500 100 50 2 40 15 $2,000 5. If you drill into the female group, what would be bounce rates for each lifestyle? (Use the data in Figure 3.) A B C D E F 1 Users Who Users Who Were Lifestyle New Users Viewed Only 1 Bounce Rate Engaged in a Ecommerce Page Transaction Conversion Rate 2 Avid Shoppers 3 Kitchen Strangers 4 Constrained Shoppers 5 Hurried Shoppers 6 Unfettered Shoppers5. If you drill into the female group, what would be bounce rates for each lifestyle? (Use the data in Figure 3.) A B C D E F 1 Users Who Users Who Were Lifestyle New Users Viewed Only 1 Bounce Rate Engaged in a Ecommerce Page Transaction Conversion Rate 2 Avid Shoppers 3 Kitchen Strangers 4 Constrained Shoppers 5 Hurried Shoppers 6 Unfettered Shoppers O 65, 12.5, 20, 80, 140 O 50, 7.5, 75, 20, 50 O 50, 14.5, 80, 25, 120 65, 14.5, 100, 50, 1506. If you drill into the female group, what would be conversion rates for each lifestyle? (Use the data in Figure 3.) (T10, 8, 7, 7, 10 010, 10, 1o, 14, 3 T12.5,17,1o,12,7 'A' 12.5, 35, 10, 20, 15 7. After analyzing the bounce and conversion rates for the three demographic variables (age, gender, and lifestyle), what do you suggest to Genevieve to be the ideal target market for her clinic? (Use the data in Figures 1, 2, and 3.) A Age 26-35, Female, Kitchen Stranger A Age 46-55, Female, Unfettered Shopper A Age 18-25, Female, Hurried Shopper A Age 36-45, Female, Avid Shopper