Does interactive marketing work for B2C firms?

In this post, we examine whether interactive marketing works for B2C products.

It turns out once again that there are scenarios in which interactive marketing works great for B2C firms and scenarios in which it does not.

 

Interactive marketing involves the following steps:

1) identifying prospects belonging to a certain customer segment

2) interacting with them and

3) gauging from their responses whether or not they will buy your products.

OR the following steps:

1) identifying prospects belonging to a certain customer segment

2) listening to them for indications that they will buy your products and

3) once it is clear they would be interested in your products, interacting with them to sell the product.

 

As you can see, interactive marketing requires some effort for interaction per sale.  So, it can only be used to sell B2C products where the cost of the product is high enough to justify the cost of interacting with a prospect.

Below are a few categories of products that we examine the possibility of promoting through interactive marketing:

 

Category 1:  Cool Drinks

Assume that someone tweets about needing to cool off on a warm day.  An interactive cool drink marketer would use an automation product to identify the person who tweeted it as a prospect, and immediately respond with an offer to send them a bottle of an awesome cool drink.

However the cost of interacting with the person and then supplying the drink to the person at the right location and in a timely manner would be so high that it would not be a viable method of increasing sales.

The problem is that a cool drink costs a few dollars at most.  The cost of even a few minutes of a marketer’s time is probably far higher.

 

Category 2:  Luxury Products

In a recent study we were absolutely astounded at the number of people who expressed a wish to buy a Tesla car on Twitter and Facebook.  There are literally hundreds of people admitting each day on social media that they wish to own a Tesla car.

It would make a lot of sense to engage with people who fit the customer profile and admit to being interests, perhaps by sending them to a webpage on the Tesla site which contains content about Tesla and also a form that would allow them to sign up for test drives.

The car is expensive so interacting with prospects might provide good ROI.

 

Category 3:  Real Estate Products

Some real estate products are targeted at HNIs (High Net-Worth Individuals).

It is possible to target HNIs by interacting with them so that they become aware of real-estate products that suit them.

Here again, the cost to the real-estate firm of interacting one-on-one with a customer might be well worth it in terms of the lifetime value of a happy HNI customer.

 

You have probably discovered the answer to the question we began with by now.

Yes, interactive marketing is attractive for B2C sales only for high-ticket product and services.  The higher the value of each sale, the more it makes sense to use buyer profiling and interactive marketing to reach out to customers.

 

Related articles:

In our blog post titled “Does content marketing work for B2B firms“, we examined the various competitive positions that B2B firms could be in, and the effective and ineffective content marketing strategies for each.

We also explained what interactive marketing is and how it complements and blends into content marketing in our post “What is interactive marketing?

 

 

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