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Leveraging buying behavior data can help companies generate revenue

Rachel Wheeler Archive
A new study by Legolas Media and research firm SymphonyIRI found that if a company targets consumers based on prior purchasing behavior, the organization can experience an increase in both online and in-house sales. However, marketers need to ensure data quality is correct and relevant, as leveraging the wrong information may dampen the effectiveness of advertisements.

"By pairing the targeting statistics of our audience 'futures' marketplace with the sales results determined by SymphonyIRI’s Consumer Network, we've been able to prove that premium online advertising can drive brick-and-mortar sales by both increasing brand loyalty and gaining new customers from competitors," Legolas Media president Ran Cohen said.

The study noted that companies that addressed regular customers by using targeted advertisements saw in-store sales grow 48 percent. Meanwhile, leveraging consumer buying behavior data helped businesses generate 23 percent more sales from users of competitor products.

A separate report by eMarketer found that U.S. companies will spend more than $49 billion on online advertisements in 2015. While these strategies can yield large revenue boosts for both in-house and online stores, decision-makers need to ensure data quality remains important, as the wrong information can make marketing campaigns ineffective.