In the competitive world of retail home goods and appliances, half the battle is simply knowing who is actually ready to buy. For years, independent retailers have relied on broad audience segments, essentially casting a wide net and hoping for the best.
But as this retail marketing group discovered, "hoping" leads to wasted ad spend and missed opportunities. By shifting from generic targeting to propensity-based modeling, they didn’t just improve their numbers—they revolutionized how they support their network of independent retailers.
Here is how they turned data into a 120% lift in conversion rates.
The Challenge: The High Cost of "Broad" Targeting
This retail marketing group supports a massive network of independent retailers, each with unique shoppers and buying cycles. The problem? Their marketing teams lacked a reliable way to identify which consumers were effectively "in-market."
Campaigns relied on:
- Broad segments: Targeting everyone rather than the right one.
- Generic messaging: Lacking the nuance needed to close a sale.
- Wasted Spend: Paying for impressions on people who weren't ready to purchase.
They needed a smarter, predictive way to focus their budget on the audiences most likely to convert.
The Solution: Propensity-Based Audience Modeling
This retail marketing group partnered with Further to implement Compass, a marketing intelligence platform that consolidates data and enables various AI-activations as a key tool in the marketers toolkit. This wasn't just about gathering data; it was about scoring it.
By unifying media, behavioral, and performance signals (conversion rate, CPC, and CTR) into a single scoring layer, Compass allowed retail marketing group to model propensity. Instead of targeting a demographic, they could target an intent.
This approach allowed them to:
- Identify High-Intent Shoppers: Pinpoint exactly who is most likely to purchase.
- Prioritize Audiences: Shift budget away from low-intent browsers to high-intent buyers.
- Tailor Messaging: Deliver the right message at the exact moment of decision.
The Results: Efficiency Meets Growth
The shift from broad targeting to precision activation delivered immediate, measurable impact across key retail categories. By focusing dollars on shoppers with the highest likelihood to buy, this retail marketing group achieved:
- 120% Lift in Conversion Rates: The most significant indicator that they were finally reaching the right people.
- 24% Increase in Traffic: Proving that precision doesn't always mean lower volume.
- 13% Reduction in CPC: Lower costs combined with higher performance.
Key Takeaways
Data Quality is Gold: Having your data in one place, cleaned, and ready for action enables a lot of AI Activation opportunities others don’t have.
Stop chasing demographics: Age and gender don't buy refrigerators; intent does.
Score your data: Not all clicks are created equal.
Budget follows behavior: Move money in real-time to where the heat is.
Want to learn more about how Further’s Compass Marketing Intelligence solution can help your business? Contact us today info@gofurther.com
