Behavioural targeting or permission marketing for lifetime value?

Both behavioural targeting(BT) and permission marketing (PM) can prove very profitable in driving business forward, but which is best for delivering long term business value?.

Behavioural targeting can help brands cut through the clutter and become more personalized in the acquisition process, it can also help customers via isolating more salient options and thus alleviating the trouble of ‘cognitive load’ in a cluttered marketplace. However, whilst this may be rewarding for a ‘quick win’ solution it does not necessarily remain helpful in building ‘relationships’ nor accommodating in attracting ‘loyalty’.

Permission marketing helps us to understand the customer further and doesn’t assume what the customer wants nor does it play on overt manipulation of a customer’s fleeting thoughts/journey. In this sense permission marketing is the unassuming friend of the customer by actually ‘asking’ the customer first and suggesting later. The process is longer in PM, and is akin to a ‘relationship’ as opposed to a ‘fling’, essentially it is less desperate.

With PM the opportunity for building a clean and relevant list, whilst long, is worth it in the long haul. Not only do you start to learn about your customers but you also can begin to understand their limits. In a world of ever increasing transparency and intrusion, there may well be a point where customers start to say no and then we need to know why.

The other benefits of permission marketing (especially when integrated into the automated workflow of e-CRM) is that you can create a contract from the beginning. Customers are then more open in offering the best ways for developing the relationship further, especially in regards to frequency of contact and timeliness, two of the most important matters in maintaining trust and acceptance.

Behavioural targeting is however, by no means unimportant or worthless. For a large number of brands, especially at certain touch points it can be highly influential and powerful, particularly in driving new business at speed. But perhaps the more deep layered segmented approach which is now applied via social media integration can make it more relevant and meaningful to the prospect.

The question we have left to answer is if we are seeking customers trust in order to build a long term ‘relationship’, then don’t we need to understand them first?. In this sense, therefore, is it not essential to know their limits and therefore actually ask them what they want? We all know where ‘assumption’ leads us in the end.

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By Ann-Marie Ivanova