Social networks and search engines changed the way private individuals are segmented and profiled for sales and marketing purposes – and the same is now happening to legal entities.
Almost two decades ago, the revolution of profiling an ideal target audience came into play thanks to an innocent looking webpage that had a search box in the middle. It came to change everything and transform one of the biggest industries in the world.
For decades, targeting audiences have been characterized by junks and masses. The media industry created content to attract viewers – their product – to be sold to advertisers who wanted to target audiences. The products where ”500,000 viewers, of whom 75% were female and aged 30-40” or ”Decision makers (whatever that means…) that spend at least 30 minutes per day in our media.”
Social networks and search engines created a platform for their users (users are their product) to create a huge amount of information about them. They collected their own internal data and used it to segment their users in a completely new way. Instead of ”500,000 viewers of whom 75% were female aged 30-40”, they could offer users with a guaranteed interest in a specific service. Nowadays, you can even target users who don’t know that they are interested in a specific service yet.
By ”making the world’s information accessible by one click” or ”making the world more open”, these companies also happened to make ”people (that have spending power) accessible by one click” or ”making the buyers open for sales pitches”. This proved to be extremely lucrative.
Creating and collecting data
Google, along with Facebook and others, have three core functions to harness the power of their product (the users).
- The Platform, with two functions:
- Luring users to generate huge amount of data about them (core product).
- Engaging with the user to sell advertising targeted towards them.
- The advertising and marketing platform, where you can buy and auction media for visibility. The price indicates how popular the search word is, to make sure that the product isn’t under-priced.
- The analytics platform, where you can analyze how much traffic your advertising gets and see where a visitor is entering your website from.
Analytic to verify your investments
Why would the industry develop a free tool (in most cases) to analyze how well your site performs? The primary reason for this is (according to me) that with analytics tools, you can verify indisputably the investment of your marketing investments made by a specific platform. So, if 1€ brings you 2€, why not invest 10€, 100€, or even more, assuming your business can handle it.
In a seminar, one developer told men that after Google Analytics, Google became ”Google on crack”
What really changed the odds in the media industry wasn’t a smart search tool or a social platform, it was a totally unbeatable way of profiling and targeting people for sales and marketing purposes. With Analytics, you can show an undisputed ROI for your marketing investments. The old saying ”half of your investment goes to waste, but you don’t know which half” was torn apart. And that was something that the traditional field could not handle. That changed the odds in that casino.
Creating a Company Database
For the B2B industry, it’s not all about targeting persons, but companies as well. This industry is on a good way to catch up with the B2C sector.
By harnessing massive amounts of facts about companies, the company data can be structured and easy to access for anyone. Having a platform to search for that information, engage with prospects and analyze the ROI will change how the world looks at segmenting and profiling B2B data. It will be a huge game changer and those who take advantage of it will benefit enormously.
Having a platform to search for massive amounts of information about legal entities will be a game changer in the B2B industry.
In the B2B industry, everybody knows that around 90% of your approaches goes to waste – you just don’t know where the 10% lies. Injecting data and knowledge about entities into B2B sales teams the way Google and Facebook did with the B2C industry can drop that 90% significantly. Only dropping it to 80% means that we can increase the hit rate from 10% to 20%. Doubling the hit rate is, as we all know, a significant market maker.
At Vainu, we used the masses of data our web indexing technology collects to compare common data-points of our existing users with the general tendencies among all companies. Among other things, we found out that 90,89% of our customers have a foreign language on their website, this to be compared with 35,18% for Finnish companies in general. We could also see that 87,63% of our customers are active on several social media channels. The figure for all companies in Finland is 23,43%.
Thanks to insights like the ones mentioned above, we can create a more detailed ideal customer profile and make smart decisions about what companies to focus our sales and marketing resources on first, to increase our hit rate and revenue.