The Consumer Truth

The effectiveness of traditional (mass) advertising has been reduced by channel proliferation and technology (user-generated content, DVRs, podcasting etc.). Additionally, a greater emphasis is now placed on accountability and attaining a justifiable return on investment (ROI) for each promotional endeavor. Behavior-based marketing allows you to make decisions based on actual consumer purchase behavior, linking the effectiveness of targeting with cost per performance to provide marketers with a measurability that previously never existed.

Prioritizing the 20% of consumers that account for 80% of a product's (or category's) volume is the key to minimizing promotional waste. Specific promotions and advertising targeted at the most profitable consumers (the 20% or less), ultimately increases your efficiency and delivers a higher ROI for your efforts.

As a real-life example, consider Condiment X with a category penetration of 35%. (Only 35% of all consumers purchase the category.) In this example, 65% of a mass marketing promotional spend would hypothetically be wasted. In addition, Pareto's principle (the 20/80 rule) which applies in some form to all products dictates that a mere 20% of these consumers purchase 80% of the total category volume. Behavior-based targeting enables you to find this small subset of households, and target them with specific promotions and advertising.

Catalina Marketing, the recognized leader in behavior-based marketing, uses a sophisticated consumer-purchase database to pin-point shoppers' specific buying behaviors, enabling brands, retailers and healthcare providers to uncover the consumer truth, and create the most relevant and compelling targeted advertisements, promotions and communications. Catalina Marketing is the ONLY solution that can provide you with the actionable insight to effectively reach your best consumers. The times have changed - primitive methods of reaching your consumer have been replaced with a sophisticated measurable medium.