Onion Peel Targeting [Heuristics based]
Unveiling Dove's Ideal Customers
The Onion Peel Targeting technique is a savvy way to understand potential customers and used to acquire customers, from those adjacent to Dove's product category to loyal patrons. A simpler way to analyze this would be to compare it to a marketing funnel, wherein TOFU, MOFU and BOFU form your crucial stages to have users convert.
Moreover, this kind of targeting is best analyzed inside out while targeting users and personalizing communication based on it.
Let's apply this to Dove's personal care products.
Outermost Layer (TOFU): Adjacent Category Buyers
Engaging those adjacent to Dove's category.
Intrigued by similar products, yet to explore Dove.
Example: Users who’ve never used Dove, nor shampoos, but other categories like hair oil or hair cleansers from Pantene or Head and Shoulders.
Intermediate Layers: Gradual Inclination
Transitioning to awareness of personal care's significance.
Acknowledging Dove's brand presence, not yet converted.
Example: The user is a shampoo buyer but not a Dove shampoo buyer.
Intermediate Layer (MOFU): Intent and Exploration
Expressing interest through engagement with Dove's content.
On the brink of becoming customers, displaying intent.
Example: Has purchased from Dove – but not necessarily shampoo. It could be body wash, face wash, and more.
Inner Layer (BOFU): Intent and Engagement
Expressing interest through engagement with Dove's content.
Close to becoming customers, displaying intent to purchase.
Example: Users engaging with Dove's content, visiting the site, and are on the verge of purchasing - like products added to cart/wishlist.
Core (Conversion): Loyalty and Experience
Loyal customers who've experienced Dove's products.
Brand advocates who have moved from interest to loyalty.
Example: Loyal buyers who've purchased Dove's shampoo and have experienced its benefits firsthand.
How to use it to target customers?
As mentioned before, flip it inside out.
For users who’ve already purchased from you, target them for upselling and cross-selling opportunities. Ask for feedback, take surveys, and holistically engage them enough for a great user experience.
For users who’ve added products to their cart but not checked out, use discounts, coupons, flash sales, and more to have them convert. These are your BOFU audience.
The users who’ve purchased from you but not in the category you want them to should be targeted accordingly. These are your MOFU users and should be best targeted with testimonials, reviews, and more.
For users who are familiar with your brand but have never purchased, strategize it with the benefits of using your brand over your competitors. Pull out your USPs, statistics and convince users to make a purchase.
And lastly, your TOFU audience, or users who’ve never purchased from you, nor do they know about you, which comes under user acquisition, target them with your TOFU strategy.
Use actionable insights, compare them to the marketing funnel, build curiosity and interest, and watch as your conversions skyrocket.
Example: Dove Shampoo or Soap
Imagine a consumer named Alex. Alex regularly uses organic shampoos (Layer 1) and is quite conscious about their personal care routine (Layer 2). While shopping for personal care products, Alex noticed Dove's ads and recognizes the brand (Layer 3). Intrigued by the positive feedback from friends and online reviews, Alex visits Dove's website to explore their product offerings (Layer 4). After discovering the benefits of Dove's products, Alex decides to purchase a bottle of Dove shampoo (Layer 5), which leads to a satisfying experience and potentially turns Alex into a loyal Dove customer.
Objectives that you can meet with heuristic segmentation:
Upselling and Cross-selling: Heuristic segmentation identifies customer preferences, enabling targeted upselling and cross-selling for higher transaction values.
Reducing Cost Per Acquisition (CPA): By focusing on responsive segments, heuristic segmentation optimizes resources, lowering CPA through efficient targeting.
Enhancing Personalization: Insights from heuristic segmentation fuel personalized experiences, boosting engagement, conversion, and brand loyalty.
Optimizing Product Development: Granular insights aid in developing products that cater to distinct segment needs, increasing successful launches.
Dynamic Pricing Strategies: Heuristic segmentation informs pricing adjustments based on segment sensitivities, maximizing revenue and competitiveness.
2. Harnessing Growth with Lookalike Targeting: A Strategic Approach
A commonly thrown-around but highly practical and underrated term, Lookalike Targeting involves crafting a cohort of potential customers mirroring the behaviors and attributes of your existing high-value customers.
By following a systematic process, businesses can leverage this technique to expand their customer base and unlock new growth opportunities.
Step 1: Defining Relevant Variables
Begin by defining key variables likely relevant to your ideal customer profile. These variables include demographic factors, purchasing behavior, interests, and engagement metrics.
Step 2: Significance Check in Last 6-Month Buyers
Focus on the most recent six-month buyer data and analyze the significance of the variables defined in Step 1. Evaluate how these variables correlate with high-value customer attributes.
Step 3: Applying Variables to Your Cohort
Once you've identified the significant variables, apply them to your entire customer cohort. Use the refined variables to segment your customer base into distinct groups. These groups will serve as the foundation for creating lookalike audiences that share similar characteristics and behaviors with your existing high-value customers.
Lookalike segmentation empowers companies to pinpoint potential customers who exhibit traits akin to those of their best existing customers, thereby enhancing the accuracy and effectiveness of their marketing efforts.
Conclusion: Synthesizing Strategy and Growth through Segmentation
In the dynamic realm of business strategy, heuristic segmentation blends creativity with data, crafting personalized approaches that resonate deeply with consumer behavior. Conversely, lookalike targeting leverages existing customer attributes to unearth untapped potential, steering expansion with accuracy. These segmentation strategies converge as dynamic tools, allowing companies to build intimate connections with their audience and drive growth by reaching prospects with promising resonance. By intertwining artistry and data-driven precision, businesses can understand their audience and chart a course toward enduring success.
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