Big brother is watching you

April 11th, 2016

Shi van der Vaart & Lisa Eimers

It is no secret that companies know exactly what you like, hate and care for, but why do they do this exactly?

Database driven marketing is becoming an interesting topic in the world of marketing. It is an essential element in practicing business to be able to compete in the future. Data driven marketing refers to acquiring, analyzing and applying information about customer and consumer wants, needs, context, behavior and motivations. The essence is about knowing the customer. Let’s have a look in this new, dynamic world. 

Have you ever just asked yourself how much companies know about you? For example, if you scroll through your Facebook timeline and you like a page, moments later, an advertisement with shoes will pop up on your screen. This is not a coincidence. An increasing number of organizations will follow your behavior online. They are watching you. Nowadays, websites will always offer cookies. These are little files on your hard disk that will track your behavior online. How long do you look at an advertisement and what kind of websites do you visit the most? This is very important information for companies. Recent research argues this data base driven marketing is 12% more successful than the usual way of marketing. How does that come? 

Earlier, advertisements were sent to the whole public. Your grandparents, your friends and your colleagues, everyone saw the same advertisement. The companies saw the public as one homogenous crowd. But not everyone has the same interests and needs. So, companies began to segment the homogenous crowd in small groups of people with the same needs. Advertisements are more addressed to a specific group of customers. People feel more concerned and will buy the item faster. 
 Also, the companies value the information about customers a lot. It is important to know the customers, so they can satisfy the needs of the customer. That's why they keep tracking you, to offer you more advertisements that are suitable for you. It is easier to sell a product to a customer that is already interested in buying the product than to a customer who is not interested at all. 

From our point of view, this kind of marketing is the future. In a globalizing world, it becomes more and more important to segment al your customers and satisfy their different needs.