Transform Your B2C Sales Strategy With AI-Enabled Targeted Selling in 2023

Transform Your B2C Sales Strategy With AI-Enabled Targeted Selling in 2023

Customer data ·

Targeted selling has long been a buzzword in the world of business-to-business (B2B) marketing. It's a strategy that involves tailoring your marketing strategy and sales efforts to specific companies, or even individuals, with the goal of increasing your chances of closing a deal.

Targeted selling has always been considered an effective strategy for B2B businesses because the average value of the transaction is higher and they tend to have longer-term relationships with the businesses they work with. Also, the sales cycle for B2B products and services is usually longer and more complex than B2C. In B2B, the decision-making process often involves multiple stakeholders, each with their own set of needs and preferences.

Targeted selling allows B2B businesses to tailor their marketing messages and sales endeavours to specific stakeholders, addressing their unique pain points and demonstrating how their products or services can help solve their problems.

With this strategy, B2B businesses can foster a strong relationship with their customers by providing personalized solutions that meet their needs, which can lead to increased customer loyalty and retention.

But what about the benefits of targeted selling for business-to-consumer (B2C) companies?

Surprisingly, this topic is often overlooked, with most professionals focusing solely on B2B targeted selling. If you search for "targeted selling" online they often refer to it as a B2B marketing and sales strategy, namely target account selling methodology.

However, the potential benefits of targeted selling for B2C businesses is high, and can have a significant impact on growth and profitability. In this blog post, we'll explore the benefits of targeted selling for B2C businesses and why it's a strategy that should not be ignored.

What is a B2C business?

B2C stands for "business-to-consumer" and refers to companies that sell products or services directly to individual consumers. Examples of B2C businesses include online retailers such as Amazon and eBay, as well as brick-and-mortar stores like Walmart and Target. Service-oriented B2C businesses include companies like Uber and Airbnb, which offer transportation and lodging services, respectively, directly to consumers.

In contrast, "business-to-business" (B2B) companies sell products or services to other businesses rather than individual consumers. B2B companies usually focus on selling strategies to boost sales, while B2C businesses typically focus on marketing and advertising their products or services to a broad audience.

What is the targeted selling strategy for B2C businesses?

This strategy consists of developing hyper customized nurturing, engaging and long-term relationships with your existing customers to increase the probability of up and cross selling throughout the customer journey.

Targeted selling refers to a sales approach that concentrates on particular customers or market segments that the seller perceives to have a higher likelihood of purchasing their products or services. The strategy involves identifying and understanding the needs of these potential buyers, and then creating a sales approach that is tailored to meet those requirements.

In B2B, targeted account selling is all about identifying potential or existing customers and engaging with them in a way that increases the likelihood of closing high-value deals. This is typically done through a combination of account-based marketing and sales strategies that focus on understanding the needs and pain points of the customer, and tailoring the sales pitch accordingly.

In contrast, targeted selling in the B2C is focused on developing hyper-customized nurturing experience that aim to increase the customer lifetime value. This means creating long-term relationships with existing customers and engaging with them to encourages them to make repeat purchases and become brand advocates.

The goal of targeted selling in B2C is to increase the average amount that each customer spends with your brand over time, which can have a significant impact on your bottom line.

To achieve this, B2C businesses need to focus on developing personalized experiences for their customers throughout the entire customer journey. This includes everything from targeted email campaigns and product recommendations to loyalty programs and personalized shopping experiences.

In B2C, due to the higher number of single accounts, i.e. customers, the process of targeted selling is possible only with the help of automation. Thanks to the emerging technologies and especially considering the impact of AI, we can now start talking about targeted selling for companies that are selling directly to customers.

In other words, it is now possible to increase the level of granularity of customer clustering and tailor the customer journey according to their specific preferences and needs.

By engaging with customers in a way that feels personal and relevant to their needs, B2C businesses can increase the likelihood of up-selling and cross-selling opportunities. In this article we will explore the emerging concept of targeted selling for B2C businesses.

When to use target selling in B2C

Targeted selling can be an extremely effective strategy for B2C companies, especially those that sell high-value products. In these cases, targeted selling can help to build trust and loyalty with the customer, leading to increased sales and customer lifetime value.

In particular, targeted selling is highly effective for B2C companies that sell products with complementary items. By leveraging data and customer insights, companies can identify which products are most likely to be purchased by specific customers, and use targeted selling strategies to promote these items to them. This can include recommending complementary products at the point of purchase or offering personalized product bundles and discounts to customers.

For example, a company selling high-end home audio systems might use targeted selling to promote complementary products such as high-quality speaker cables, audio connectors, or even furniture and home decor that complements the overall aesthetic of the audio system.

There is another aspect of a business that can significantly enhance the effectiveness of targeted selling as a marketing strategy: the consumable nature of the product. When a product is designed to be repurchased multiple times over a customer's lifetime, it presents a golden opportunity for implementing targeted selling tactics.

By creating a seamless and integrated experience for the customer, companies can increase the overall value of each purchase and build a loyal customer base over time.

The four pillars of a successful B2C targeted selling strategy

Here we present the main pillars to implement for a superior targeted selling strategy.

1. Premium experience

To create an effective targeted selling strategy, it's crucial to provide a premium after-sales experience that delivers a smooth and frictionless customer journey, from effortless onboarding to fast and proactive customer support with a maximum level of personalization.

Customer onboarding is a critical stage in this process as it marks the first interaction between the customer and the product. It's also an opportunity for the company to gather data that enables a more personalized experience and better overall support throughout the customer journey.

To increase the likelihood of customers making repeat purchases from your brand, it's crucial to prioritize creating a superior experience for them. This means going above and beyond in meeting their needs and expectations at every touchpoint of their journey with your brand, from initial browsing to post-sale interactions.

2. Relevant marketing campaigns

Implementing relevant marketing campaigns is a fundamental activity for businesses that aim to increase customer engagement and sales. These campaigns involve sending targeted communications to individual customers or specific clusters that are closely connected with their needs, preferences, and personality. By "relevant," we mean that the communications are appropriate and meaningful to the customer.

Let's say a company that sells motorcycles is organizing an event specifically for young bikers. They could create a relevant marketing campaign by targeting young people who are interested in motorcycles and live in the surrounding area.

The company could leverage email or SMS marketing by sending personalized invitations to their existing customers who fit the criteria for the event. They could offer special discounts or promotions to incentivize attendance and encourage customers to share the invitation with their friends.

By creating a targeted and personalized marketing campaign, the company can increase the likelihood of attracting young bikers to their event, creating a positive brand experience and potentially leading to future sales.

3. Tailored offerings

To increase the probability of your existing customers to re-purchase from your brand, you need to tailor specific offering to them. By collecting data on your customers' preferences, you can then tailor the product recommendations.

For example, let's say a customer has been browsing online for running shoes, but hasn't made a purchase yet. A sports retailer could send a targeted email campaign to that customer with personalized recommendations for running shoes based on their search history and preferences.

The email could include a message like "We noticed you've been searching for running shoes! Check out these top picks based on your preferences and recent searches," along with images and descriptions of the recommended products.

This type of tailored offerings takes into account the customer's specific interests and needs, increasing the likelihood that they will engage with the content and make a purchase.

4. Loyalty discounts

Loyalty discounts are the fourth pillar of a B2C targeted selling strategy as they allow to increase the level of relevance and convenience of the offering. The more the customer is loyal, the more discounts he or she will get. This is also a strategy meant to boost sales by leveraging the customer targeting.

Benefits of targeted selling in B2C

Retention rate increase

After customers have purchased a product, a superior experience will increase their engagement with the brand. By using targeted selling, companies can increase customer retention rates by providing personalized recommendations and experiences that keep customers engaged and satisfied. When customers feel understood and valued by a company, they are more likely to continue buying from that company and less likely to churn.

Sales increase

The main goal of targeted selling is to increase sales through the personalisation of the offering. Targeted selling can lead to increased sales by providing customers with personalized recommendations for products they are likely to be interested in. When customers feel that a company understands their needs and offers relevant solutions, they are more likely to make a purchase. Additionally, by cross-selling and upselling complementary products, companies can increase the overall value of each sale.

Customer lifetime value increase

Also, one of the main goals of companies adopting a targeted selling strategy is increasing customer lifetime value. Through personalized recommendations and experiences, companies can boost their sales per customer, thereby increasing their overall revenue over time.

When customers feel that a company understands their needs and provides relevant solutions, they are more likely to become repeat customers and make additional purchases over time. This can result in higher revenue and profitability over the long term.

Competitive advantage

Targeted selling can give companies a competitive advantage by providing personalized experiences that differentiate them from their competitors. By using data and customer insights to offer relevant solutions, companies can stand out in a crowded marketplace and attract and retain customers more effectively.

Lower marketing costs

Targeted selling can also result in lower marketing costs by reducing the need for broad-based advertising and increasing the efficiency of marketing efforts. By using data and customer insights to target specific customers with personalized recommendations, companies can reduce their customer acquisition costs and increase the return on their marketing investments.

4 steps to build your B2C targeted selling strategy

Here are six steps that are necessary to implement a targeted selling strategy for a B2C company.

1. Collect data about your customers

According to Harvard Business Review, the most engaging digital experiences are founded upon a comprehensive understanding of the customer. This includes knowledge of their identity, desires, tasks, and even self-perception.

However, based on their research, companies invest more on new technology and do not put effort in understanding the customer first. This approach is problematic because compelling digital experiences cannot exist without a thorough understanding of the customer.

Collecting data about your customers is a fundamental and critical step in implementing a targeted selling strategy. Without sufficient customer data, it becomes impossible to develop and execute effective targeted sales efforts.

Gathering customer data enables businesses to develop an in-depth understanding of their customers' preferences, behaviors, and buying patterns. This information can be used to create personalized and relevant messaging, promotions, and offerings that resonate with each individual customer.

A perfect solution for you to easily collect data on your customers is doing that during the onboarding process using Forms. Layerise can help your business to fulfil this step in the process and also assist at the moment of data activation.

Lastly, collecting customer data allows businesses to segment their customer base and identify the most valuable customers, so they can be targeted with specific offers and loyalty programs to increase the efficacy of the sales effort. This not only increases the likelihood of repeat purchases but also strengthens customer relationships and brand loyalty.

2. Organize your customer data in clusters

After collecting relevant customer data, the next step in implementing a targeted selling strategy is to analyze the data and extract customer segments or clusters that have similar characteristics and preferences. These segments are created based on factors such as age, gender, location, buying behavior, and other relevant variables that help to group customers with similar needs and preferences.

Analyzing customer data and grouping customers into specific segments is crucial because it allows businesses to create highly targeted and personalized marketing campaigns. These campaigns can be tailored to address the specific needs and preferences of each segment, making them more likely to convert into sales.

Grouping customers into segments allows businesses to activate them together on a second instance. This means that once a segment is identified, businesses can focus on specific strategies that are most effective in engaging with that group. This could include offering targeted promotions, personalized recommendations, or loyalty programs, all of which can further strengthen customer relationships and drive sales.

To sum up, analyzing customer data and grouping customers into specific segments is a crucial step in implementing an effective targeted selling strategy. It allows businesses to create highly targeted and personalized marketing campaigns and activate groups of customers together for more effective engagement.

3. Activate the customer data

Customer data activation refers to the process of leveraging the information and insights derived from customer data to drive better business outcomes, such as improved customer experiences, more effective marketing campaigns, and increased revenue.

To activate customer data, businesses must first collect, organize, and analyze the data to gain meaningful insights into their customers' behaviors, preferences, and needs. This may involve using tools such as data management platforms, customer relationship management software, and analytics tools to collect and analyze data from various sources, including website interactions, social media activity, purchase history, and customer feedback.

Once the data has been analyzed, businesses can use the insights to create targeted marketing campaigns, personalized messaging, and optimized customer experiences. This may involve segmenting customers into different groups based on their characteristics and preferences, and tailoring marketing messages and promotions to each group.

Other strategies for activating customer data may include improving website navigation and design based on customer behavior, offering personalized recommendations based on purchase history and preferences, and optimizing customer service interactions based on past behavior and feedback.

Overall, customer data activation involves using data-driven insights to create a more personalized and effective customer experience, which can lead to increased customer loyalty, higher engagement, and improved business outcomes.

4. Monitor the customer journey

In conclusion, like any strategy, targeted selling requires constant monitoring to continually improve performance. To achieve this, it is essential to track the progress of the customer journey and assess the effectiveness of the targeting and data activation methods. By analyzing sales information, you can evaluate the success of the strategy. Some potential Key Performance Indicators (KPIs) to use at this stage include:

- Number of sales per customer after the first purchases - Revenue generated from repeat purchases or expenses directly related to the implementation of the targeted selling strategy.

How AI is changing the sales game for B2C businesses: Layerise can help you stay on top of the game

Target Selling is a selling strategy that, until recently, was primarily associated with B2B selling. This is because B2B selling requires analyzing customer acquisition or up-sell and cross-sell opportunities using the Time invested / Expected return Matrix.

However, it was not feasible to invest the same amount of time in customizing the B2C buying experience of different customer clusters to the point where it resembled the personalized experience of strategic B2B accounts.

However, with the advent of AI-embedded technologies, it is now possible to automate the clustering part of the sales process, as well as the marketing automation part of it, creating a new concept called "Target Selling B2C Experience."

AI can now define clusters so precisely and granularly that they can encompass the totality of customers' preferences. The challenge at this point is to enable your business to collect all the data needed to pinpoint the perfect customer profile, and Layerise can assist in that regard.

As for the activation part of the journey, marketing automation solutions have become so advanced that it is possible to design and activate a highly complex customer journey that can identify the perfect moment to strike and increase conversion rates.

Layerise's marketing automation functionalities make it an ideal solution for this aspect of the process, enabling businesses to strike at the right time and on the right channel, thereby avoiding unnecessary costs.

If you want to learn more about how Layerise can help your business, book a free demo today!