“A diamond is forever” is a phrase that has lived on, well… forever! It’s actually a very clever marketing slogan and one of the most influential advertising campaigns ever created by De Beers in the 1940s.
The campaign linked diamonds to marriage proposals, reframing them as the must-have purchase for this key life milestone. Demand for diamonds flew. Before this, diamond engagement rings were relatively uncommon. Now, it’s almost expected that most people will propose with a diamond ring. Quite the turnaround!
This campaign is a powerful example of life-event marketing.
In this article, we will examine life-event marketing and compare its impact versus behaviour and demographic targeting.
Demographic targeting has always been effective. Segmenting audiences based on core, measurable traits such as age, gender, income, occupation, and location works because these variables are strong predictors of behaviour. For a business like a high-end furniture store, it can use demographics to target those with high incomes in certain postcodes. That’s powerful stuff.
…But is it? We must remember that all people, no matter if they share common traits, have different priorities. Take this example: There are two neighbours on the same street with the same property type of a similar age in similar income brackets. Would it be worth the furniture store targeting both of these homeowners? Potentially. But what if the furniture store knew that one had lived in the house for four years and the other had only just moved in? Which one is more likely to spend money? The new mover, right? They may have multiple rooms they want to furnish.
This is the problem with demographic targeting; it relies on broad assumptions and can lack relevance. If this furniture store targets every person in a certain location on a certain income, that’s a lot of wasted marketing spend, as many of these people won’t be in the market for furniture. This technique is too static and ignores that consumer needs change fast. It may also miss buyer intent.
This is the key. Demographics can provide the content but not the intent.
Behavioural targeting segments the audience based on what they do rather than who they are. By observing browsing history, searches, clicks and purchase behaviour, businesses can capture signals of interest. Someone who is continually searching for ‘bathroom renovation ideas’ is likely to be purchasing at some point.
The problem with this type of targeting is that behaviour doesn’t always translate into action. Some people are just curious, and some have no urgency to act on what they’re searching.
Behavioural targeting can also miss future intent. It often reacts to existing demand rather than identifying emerging demand. Reach is limited because it overlooks customers who haven’t yet entered the research phase. It’s also highly competitive, with lots of businesses focusing on behavioural targeting; it’s hard to stand out. Circumstances can change quickly, making this type of data irrelevant. Behavioural targeting is also impacted by concerns around privacy. Many people opt out of having their data shared and become quite irritated when companies know too much about them. What’s more, with the decline of third-party cookies, behavioural signals are not an ideal method to rely on now.
Consumers going through the same life event are much more likely to have similar purchase needs than consumers who are merely the same age, gender, income. Demographics might capture some of the core audience, but life events are more laser-focused.
Life event marketing moves beyond demographics and looks at milestones such as having a baby, moving home, getting engaged, landing a new job, getting married and retiring. These milestones are catalysts for significant shifts in consumer needs, wants and priorities. People become more open to new solutions, current circumstances are reassessed, and routines are disrupted.
“Moving home made me review all my monthly direct debits. The TV subscription service had become too expensive, my broadband wasn’t up to scratch, and I could probably get cheaper insurance if I shopped around. I’d let those services tick along, but the move gave me the push to review and change what I wasn’t happy with.”
Georgia, 34, on moving home
Customers will be more receptive to marketing messages if it is relevant to them. Significant life events change our relationship with brands and can create an emotional connection. If you personalise the message, it builds trust and loyalty as it shows you understand the consumer’s needs. By targeting at these major life events, it gives businesses the chance to sell consumers something to help them navigate changes more smoothly. Amazon Ads partnered with Alter Agents on Life Events research and found that 68% of consumers say life events directly influence their spending habits, and 6 in 10 people say they dedicate more time to product research during these transitions. The research further found that nearly half of consumers say they're more likely to compare brands during big life events.
These types of life transitions come with built-in budgets. People set money aside and are primed to spend. And this spending can last months or even years!
This article is not dismissing the power of behavioural and demographic targeting. In fact, the best campaigns combine all three. Take this example:
By using each type of data together, you can build a highly targeted and effective marketing campaign.
Research from Infobip and Retail Economics found that 61% of UK consumers consider communications from retailers and brands irrelevant to them. In addition, 56% say that communications lack personalisation. Think of the wasted marketing spend! The research concluded that retailers must go beyond demographic segmentation to engage consumers more effectively.
Demographics may tell you who someone is, and behavioural signals tell you what they might be interested in, but life events tell a more powerful story of when consumers are most likely to buy. A bullseye for effective marketing.
As UK residential property data specialists and property report experts, TwentyCi can help you build an effective marketing campaign around homemovers. Get in touch if you want to find out more!