Blueprint to Behavioral Marketing

2 | Introduction
Let’s get to the point. You should read this guide if you want to understand how to make more
money for your business while getting more value from each dollar you’re already spending.
There are few events in history that represented a paradigm shift for business growth: The
introduction of Mail, Radio, Television, DoubleClick, Google, and Facebook, to name a few.
It’s about time we add another business-changing development to that list, wouldn’t you say?
Introducing Behavioral Marketing.
Behavioral Marketing is a new, top-performing marketing channel based around the action of
identifying your previously anonymous website traffic and enabling businesses to target that
traffic on a people-based level. With Behavioral Marketing software, businesses can identify
and address the friction points throughout the conversion funnel as visitors experience them
in real-time, both on and off your website, driving incremental value and revenue across all
marketing efforts in the process.
INTRODUCTION
Why should I read the The Blueprint for Behavioral Marketing?

3 | Introduction
While I realize that is a complex and multifaceted definition, by the end of this guide, you’ll
fully understand what Behavioral Marketing is, why it’s the direction your company should
be headed (if it’s not already on its way there) and how Behavioral Marketing will not only
elevate your business but allow it to continue growing and adapting to the ever-evolving
world around it.
Part 1: Marketing Today, The Current State of Affairs
Part 2: Behavioral Marketing, The Definition and The People-Based Approach
Part 3: Behavioral Marketing, Addressing The Current State of Affairs
Part 4: Behavioral Marketing, The Business Case
Part 5: Behavioral Marketing, The Purchase Process

5 | Part 1: Marketing Today, The Current State of Affairs
Let’s begin with the world of marketing as it exists today.
As Marketers, you should be frustrated. Your current marketing strategies aren’t cutting it
anymore. With “digital” and “mobile” being all the rage right now, you’ve worked to ensure your
business, along with its marketing strategies, adapt across various digital platforms. Still, in spite of
the amount of money you’re funneling into it, your business growth has essentially plateaued.
Until this point, however, the current state of affairs has been out of your control. Now, with
Behavioral Marketing, you finally have the tools at your disposal to rejuvenate your business.
In this section, we’ll walk through the 3 key common problems faced by Marketers today and reveal
how they’re currently impeding your business growth.
1 Your Website: It’s sabotaging your conversion rate
2 Your Acquisition Channels: They’re maxed out
3 Your Retargeting Channels: They’re ROI negative
PART 1: MARKETING TODAY
The current state of affairs

6 | Part 1: Marketing Today, The Current State of Affairs > Problem 1: Your Website
Let’s start with your goals as a marketer. I think we can all agree that our ultimate goal as
marketers is to drive revenue for our businesses. There are 2 ways to do that:
Until now, only the first of those options has been possible: Increasing your quantity of traffic.
Marketers have been focused on this method of increasing their revenue even prior to the
existence of the World Wide Web and Digital Marketing. Brick & Mortar Marketers relied
on the “Spray & Pray” technique: Companies would spray their money around various
advertising options and pray that those options worked in their favor, whether via billboards,
print ads, or direct mail.
Today, with the World Wide Web, marketers are armed with new marketing tactics that not
only drive traffic but also allow you to really understand the results of your efforts with real
and trackable data behind them—Google AdWords, Facebook, and Twitter, to name a few.
PROBLEM 1: YOUR WEBSITE
It’s sabotaging your conversion rate

1
“Digital Ad Spending to Surpass TV Next Year—EMarketer.”
EMarketer. N.p., 8 Mar. 2016. Web. 10 Aug. 2016.
At this point, there are an endless number of ways for marketers to drive new and qualified
traffic to their businesses for continued returns on their ad spend. In fact, by 2017, digital media
ad spend in the US is projected to surpass television for the first time in history and by 2020 is
expected to represent nearly 50% of total US media spend.1

Considering the market share held by digital, it’s not
surprising that for every $92 spent on digital ads driving
traffic to a website, only $1 is spent actually guiding that
traffic toward conversion once it’s on the website. Of
course marketers continue to rely on that ratio. They focus
their attention on the variable of the equation they know
they can control, the traffic, and leave the variable that has
historically been untapped by technology, the website,
untouched.
What does this mean for your digital business? It means
that today, your website is comparable to a store devoid
of any maps, any store associates, and anything to help
your visitors through the conversion journey. And your
conversions? Well, they’re suffering as a result.
Right now, your marketing funnel looks like this—what we
like to call The Myopic Funnel, or a crude view of your
website’s conversion funnel.
Let’s say you’re pushing 10 million monthly unique visitors to
your website. You’re treating the majority of those visitors,
if not all of them, exactly the same, regardless of how deep
into the funnel they might reach or how much purchase
intent they are exhibiting. You’re simply leaving them alone
on your website to either convert or not convert.
The 92:1 Ratio: The majority of
marketers currently spend $92
driving traffic to their websites
but only $1 guiding that traffic to
conversion once it gets there.
THE 92:1 RATIO
(a definition)

Back in the early days of the internet—back when we, as marketers, didn’t have access to the data
available to us today, when our ability to make actionable decisions from this data was limited and
our ability to measure the effectiveness of marketing campaigns was thwarted—treating all that
website traffic the same way made sense. We had no other choice. The levers that we could adjust
to drive more traffic to our websites were turned all the way up, and we were left hoping and praying
that our digital stores “fit” the needs of the vast majority of our website visitors.
We’ve finally come out of the dark age. We’ve reached a new digital era, where data is readily
accessible, the ability to make informed decisions from this data is conceivable, and the technology
to execute on these data-driven decisions is available. Specific to your digital store-front, the ability
to track and understand the behavior of website visitors as they engage with your website at various
stages of the conversion funnel is at our fingertips, and the ability to, in real-time, create digital
experiences that adjust based on this behavior is finally available. Game-changer.
With that in mind, I have a question for you: If I told you that currently, browsing on your website,
are lots of not-so-hidden treasure chests just waiting to be unlocked, would you believe me?
You should. Your Digital Goldmine exists. With the visibility, actionability and measurability I
described above, you’ll have the means to unlock that goldmine. And with Behavioral Marketing,
you can now confidently dedicate more money to increasing your revenue per session (that $1 in the
92:1 Ratio). You’ll have the means to identify and build individualized conversations between you
and your most valuable traffic, growing your business in the process.

10 | Part 1: Marketing Today, The Current State of Affairs > Problem 2: Your Acquisition Channels
PROBLEM 2: YOUR ACQUISITION CHANNELS
They’re maxed out
The majority of marketers rely on Google and Facebook to drive new traffic to their websites
(remember that 92:1 ratio—here’s where the majority of that $92 is spent). . . and they should!
With Google’s immense audience and Facebook’s extensive reach and granular level of
targeting, there’s no doubt that these advertising channels are crucial to growing your business.
However, since you’re reading this book, we can assume that even with that extensive reach and
targeted approach, your traffic is not converting at its highest potential. Google and Facebook
along with all your other acquisition marketing channels are maxed out.
In other words, you’ve optimized your ads and you’re hyper-targeting to your most profitable
audience. You’ve run out of impactful testing options and ideas. Your business can’t afford to
spend more toward these channels, as the results won’t net out.

11 | Part 1: Marketing Today, The Current State of Affairs > Problem 2: Your Acquisition Channels
This same ROAS curve can be applied to more traditional forms of advertising. Whether
billboards, print ads, or direct mail, you already have a good idea of the target spend for each ad
and how much revenue you can expect as a result.
Let’s assume that as a sophisticated marketer, you’ve already captured the most value from your
major advertising channels; what’s the next step?
Why not shift the curve upward instead? By elevating the Acquisition ROAS curve, you’ll create
more space beneath it.
More space beneath that curve means more
revenue for you while maintaining that peak
efficiency you’re currently achieving.
But how do I do that, you ask? Behavioral
Marketing, of course.
Behavioral Marketing will unlock incremental
revenue for your business by driving higher
returns on the expensive traffic you’ve
already managed to bring to your website,
shifting that acquisition ROAS curve upward
in the process.

12 | Part 1: Marketing Today, The Current State of Affairs > Problem 3: Your Retargeting Channels
PROBLEM 3: YOUR RETARGETING CHANNELS
They’re ROI negative
Email and ads represent the two retargeting channels businesses rely on to continue an off-site
dialogue with abandoning traffic. Via these channels, businesses have the real estate to convince
their abandoning visitors to return to their websites and complete their journey to conversion.
That said, today, both retargeting methods are ROI negative—regardless of what your analytics
might tell you. Let’s take a look at why.
We’ll start with email.
As the primary retargeting channel for the majority of businesses, email is often mistaken for being
the most effective channel, since you have control over the full lifecycle of what you’re sending,
when you’re sending it, and who you’re sending to.
However, when human capital is included in the equation, email is actually a negative true ROI
channel. Human capital should not be overlooked, considering 90% or more of marketing emails
are created by internal teams. The process for creating a standard marketing email is arduous,
to say the least. Think about the stages of email creation: strategy, copy, design, coding, QA,
deployment—all of this for one single email. And most businesses undergo this process anywhere
from 3 to 10 times per week; you are paying for teams of teams to dedicate themselves to building
a single email to be sent. With the amount of time and human capital that goes into this channel,
email actually represents one of the most expensive channels for most businesses.
Is it worth it? With the current state of affairs, hell no.

13 |
2
Ryan Phelan, VP of Marketing Insights at Adestra.
BounceX Webinar: “Clicks & Opens Don’t Matter: Analyzing
Email Behavior and Finding the Right Metrics for Success”
Part 1: Marketing Today, The Current State of Affairs > Problem 3: Your Retargeting Channels
The majority of email marketers still rely heavily on the “Batch and Blast” approach. They’re sending
everyone on their email lists what is basically the same email. Why not? It’s easy to do, it’s easy to do often,
and your analytics are telling you it’s killin’ it.
Correction: It’s killin’ your business growth.
Vice President of Marketing Insights at Adestra, Ryan Phelan, describes one of the major consequences
of today’s email marketing approach, as it applies to eCommerce:
That is to say, in the world of eCommerce, because you’re sending the same emails to everyone on your
email list, regardless of their expressed interest or past behaviors, you’re forced to create something more
compelling that will pique their interest—a discount, aka The Destroyer of Business Growth.
It doesn’t begin and end with eCommerce. This lack of sophistication permeates almost all verticals
and industries.
Think about it this way. By blasting marketing emails to everyone on your list, not only do you have to make
the email more appealing to those not interested by including a can’t-be-beat incentive, but you also have to
simultaneously ensure that your audience is opening your emails in the first place. How do you do that? You
send a lot of emails. You send a lot of emails with the hope that at some point during that week, one of the
emails will be relevant to someone.
The lack of sophistication drives higher reliance on discount to drive performance.
Over time, you end up eroding your margin, because you have to drive a higher or
more creative promotional structure to get the person to engage.2
“
“

14 | Part 1: Marketing Today, The Current State of Affairs > Problem 3: Your Retargeting Channels 3
2016 Email Marketing Metrics Benchmark Study. N.p.: IBM
Marketing Cloud, 2016. IBM Marketing Cloud. Web. 15 Aug. 2016.
So let’s recap how you’re currently wasting money:
• You’re sending the same email to the same people.
• You’re sending the same email to the same people.
• You’re sending the same email to the same people all the time.
What’s the consequence of all this wastefulness? List Fatigue. People feel like they’re getting
spammed with emails that aren’t relevant to them. So, what do they do? Best case: They unsubscribe.
Worst case: Your emails get marked as spam.
According to Silverpop’s 2016 benchmark study, the average unsubscribe rate for email across all
industries was roughly 0.13%3
. Let’s see what this looks like for your email list over time:

After sending 361 emails (time being an arbitrary metric here), your email list will drop by 40%. In other
words, your current email marketing strategy is destroying your email list, which ultimately will eradicate
email as a revenue channel for your business. In order to outpace this decline, you either have to grow
your email list quicker or become smarter about your email marketing strategy. . . or both!
To be clear, I’m not telling you to stop sending emails. I’m simply saying you should be smarter about how
you’re sending. What does a smarter email marketing strategy entail? Behavioral Marketing.
With Behavioral Marketing, your emails will no longer simply become more archived marketing emails.
They’ll be part of a conversation—an ongoing conversation with your individual website visitors based on
their relationship to your business, both on and off your website.
Now for ads.
Ads, the secondary channel for retargeting, utilizes real estate across the Internet to continue that off-
site conversation with your abandoning traffic. And today, like email, retargeting is likely a negative ROI
channel for your business.
Let’s start here: The majority of retargeting vendors outside of Google and Facebook markup the costs of
their ads by 100%. You’re paying double what they’re paying for your ads.
Considering the expensive markup, you’d expect your retargeting ads to be among the top-performing
channels in your analytics. They’re not. In fact, retargeting ads (outside of Google and Facebook) typically
don’t even make it into your top 5 channels if you take a look at your analytics.
But according to my retargeting vendor’s analytics, my ads are performing—so what’s the deal?

5 ”
Stop Wasting Money on Retargeting | AdExchanger.”
AdExchanger. N.p., 2013. Web. 19 Aug. 2016.
6
Ibid.
The deal, my friends, is that retargeting, as it stands today, is one the industry’s “most overvalued and
under-optimized tactics,” according to Ad Exchanger4
:
And right now, we’re seeing the worst situation across the board. That is to say, while according to
your retargeting vendor, your ads are getting traction—they’re getting clicks and driving traffic to your
website—anywhere between 20 to 75%6
of your spend on those ads is actually wasted. Those clicks,
that traffic being driven to your website, they would have completed a conversion anyway. (Pro Tip: Run
control groups for your ads to ensure the conversions you’re getting are in fact incremental.)
So, again, what’s the deal? To put it simply, you’re paying far too much for something doing far too little
for your business.
There is hope, though.
At its best, first-party segmentation, of which retargeting is one branch, can
transform digital display, turning advertising into conversation. This is the
beginning of a new level of personal relevance and contextualization in media. At
its worst, however, the same technology creates a zero-sum game where audiences
are hammered with repetitive ads desperately trying to intercept a purchase and
earn some credit for something that was going to happen anyway.
“
“

Let’s return to that first part of Ad Exchanger’s discussion on retargeting:
Segmentation. It’s all about segmentation. Today, your ads are likely treating all your abandoning visitors the
same—a method not so dissimilar from that “batch and blast” approach to email (and how’s that working out for
ya?).
Consider the fact that prospects, those visitors who have never completed a conversion on your website, convert
at a rate 5X lower than your returning customers.
That’s frustrating. But, it doesn’t end there. These prospects also require far more than a single session or 2
to convert—usually they need up to 9 sessions before they complete that first conversion with your business.
Suddenly, you should understand 2 key facts:

At its best, first-party segmentation, of which retargeting is one branch, can
transform digital display, turning advertising into conversation. This is the
beginning of a new level of personal relevance and contextualization in media.
“
“
1
2
Retargeting is crucial for your abandoning prospects
Segmentation between prospects & returning customers is essential

So, to summarize what you’re currently doing wrong when it comes to your retargeting ads strategy:
• You’re paying too much for too little returns.
• You’re treating all your abandoning traffic exactly the same.
• You’re spending too little on prospects and too much on returning customers.
Don’t stress, though. There’s still time to turn your retargeting ads strategy into a ROI-positive channel for
your business. It all boils down to focusing on your most valuable prospects first and creating a tailored
and segmented ads strategy based on how they’ve interacted with your business.
With Behavioral Marketing, you’ll grow your business by sophisticating your retargeting channels. With its
identification-first approach, Behavioral Marketing empowers you to understand your abandoning traffic
on an individual basis. Whether prospects or returning customers, you’ll unlock the ability to create a
seamless conversation with those individuals across any and every channel they might be in. This holistic
approach to Behavioral Marketing, or the people-based approach, will ultimately make your retargeting
spend more efficient and worth every penny.

19 | Part 1: Marketing Today, The Current State of Affairs > Conclusion
Thinking back to those 2 levers of revenue we discussed in Problem 1: Your Website—it’s sabotaging your
conversion rate, increasing sessions and increasing revenue per session, in their simplest form, boil down
to Quantity & Quality.
Quantity: Today, you’re driving a lot of traffic to your business. In spite of all your marketing efforts,
however, you’re only identifying roughly 5% of that traffic. That is to say, 95% of your browsers are
remaining anonymous and consequently, your business is unable to determine and unlock their true
potential.
Quality: Simultaneously, right now, those marketing efforts remain at the lower end of the quality scale—
right around that same 5% number. How can you expect a quality relationship between your business and
each of those visitors if 95% of them are anonymous?
As you’ll see throughout this guide, Behavioral Marketing will not only increase the quantity of your
identifiable traffic but will also elevate the quality of your relationships with each of your website visitors.
Behavioral Marketing will enable you to address the problems listed in this section and grow your business
as a result.

21 | Part 2: Behavioral Marketing, The Definition & The People-Based Approach > The Definition
We’ll start with the definition.
Behavioral Marketing is a new marketing channel based around the principle of identifying your previously
unidentifiable website traffic and enabling businesses to target their traffic on a people-based level. With
behavioral software, businesses can identify and address the friction points in the conversion funnel as
visitors experience them in real-time, both on and off a website, ultimately driving incremental value and
revenue across all marketing efforts.
So let’s back up. Behavioral Marketing is actually not a new concept. Take another look at the second part of
the definition and remove the pieces that make it specific to the world of “online”—you’re left with this:
With behavioral software, businesses can identify and address the friction points in the conversion
funnel as visitors experience them in real-time, both on and off the websites, ultimately driving
incremental value and revenue across all marketing efforts.
You’ve experienced this. We all have.
Let’s take a look at an example from the world of retail.
PART 2: BEHAVIORAL MARKETING
The definition

Behavioral Marketing in Retail
SuzieQ walks into a clothing store.
There are unique actions she’ll take to
signify her interest in a product. And
based on her body language, the sales
associates will react, encouraging
and guiding her journey through the
purchase process.
Now, think about the role the sales
associate plays in this scenario. While
observing SuzieQ’s behavior in the
store, the sales associate can assume
the following:
1. SuzieQ is interested in the clothes,
since she’s stopping to look
through racks.
2. SuzieQ is interested in a particular
product, since she’s sifting through
a specific rack.
3. SuzieQ has hit a friction point–she’s
not sure if she’s found what she’s
looking for.
STORE
Try it on!
Buy it!
STORE
SuzieQisShopping
1 SuzieQisBrowsing
2
SuzieQisInterested
3 SalesAssociateArrives
4
SalesAssociateHelps
5 SuzieQPurchased
6

In response, the sales associate arrives to help SuzieQ take the next action that makes sense
for her—trying on the shirt she’s interested in. In doing so, the sales associates nurtures her
interest in the product, guiding SuzieQ deeper into the conversion funnel.
There you have it, folks: Behavioral Marketing in its brick and mortar form. You’ve all
experienced it, you’ve witnessed it, and maybe you’ve even practiced it yourself.

So, if Behavioral Marketing already exists, why am I writing a book about it? Because we’re living in
a new world, people, not two separate ones!
Whole Wide World: Meet World Wide Web
It really boils down to the fact that there should no longer be a distinction between the physical
world and the digital one:
In other words, Behavioral Marketing shouldn’t be limited to physical brick and mortar stores. While
website visitors can’t express their body language in the physical sense, they sure as hell can tell
you a lot via their digital body language, or the actions and behaviors they are exhibiting on your
website. Just as store associates are often incentivized based on commission, your website should
be doing everything possible to guide your website visitors toward conversion.
Let’s take another look at that same retail example we saw previously—this time from the
eCommerce perspective as it exists today.
The digital world... has become a fully-immersed extension of the
real world. And all complexities that exist in the real world now
also exist digitally, because that is how we humans behave.4
“
“
4
Baekdal, Thomas. “Why Digital Analytics Have Become so
Complex.” Baekdal. N.p., 24 May 2016. Web. 28 July 2016.

[Lack of] Behavioral Marketing in eCommerce
Just like in a store, there are unique
actions SuzieQ will take while shopping
online that illustrate her interest in
a product and potential intent to
purchase.
Think about the role the website plays
in this scenario. It’s simply serves its
base function as a website (to exist)
regardless of the digital body language
SuzieQ displays while shopping. As
she continues through the conversion
funnel, there’s nothing on the website
to encourage her to take steps toward
making a purchase.
RETAIL
STORE
CATEGORIES
CATEGORIES
ADD TO CART ADD TO CART
Hmm...
SuzieQisShopping
1 SuzieQisBrowsing
2
SuzieQisInterested
3 SuzieQ’sUnsure
4
SuzieQ’sInterestisLost
5 SuzieQ’sLost
6

Now imagine a world where your website serves more than just that base function—where it also acts
as a salesperson for your digital business.
With Behavioral Marketing, your website will identify your otherwise anonymous browsers based
on their behaviors. Suddenly, your website can track those moments of indecision and nurture that
hesitancy into productivity.
Let’s take another look at that eCommerce example, this time with Behavioral Marketing in place.

This time, Behavioral Marketing will guide
SuzieQ from browse mode into buy mode
based on her digital body language.
What did the website do in this scenario?
1. It identified SuzieQ as a high intent
shopper since she made it to a
product page.
2. It recognized SuzieQ’s interest in
a particular product based on her
engagement with the product image.
3. It created a behavioral experience to
guide SuzieQ toward the next-most
productive action: selecting a color,
adding the item to cart, and ultimately
checking out.
Behavioral Marketing in eCommerce
ADD TO CART
CHOOSE YOUR COLOR
RETAIL
STORE
ADD TO CART
CATEGORIES
ADD TO CART
GET YOUR SHIRT NOW
THANK YOU
FOR YOUR PURCHASE
SuzieQisShopping
1 SuzieQisBrowsing
2
SuzieQisInterested
3 DigitalSalesAssociateArrives
4
DigitalSalesAssociateHelps
5 SuzieQPurchased
6

28 | Part 2: Behavioral Marketing, The Definition & The People-Based Approach > The People-Based Approach
Let’s take one more look at that definition of Behavioral Marketing, this time focused on the idea of
People-Based identification:
Behavioral Marketing is a new marketing channel based around the principle of identifying your
previously unidentifiable website traffic and enabling businesses to target their traffic on a
people-based level. With behavioral software, businesses can identify and address the friction
points in the conversion funnel as visitors experience them in real-time, both on and off a website,
ultimately driving incremental value and revenue across all marketing efforts.
The primary objective and really the key function of Behavioral Marketing boils down to identifying and
profiling anonymous website visitors—both of which can be accomplished with the capture of a single
but very powerful email address.
Once you have an email address for a particular website visitor, you gain two advantages:
1
2
The power to target that visitor across all browsers, device types, and channels
The ability to associate specific actions a visitor takes on and off your website to
their email address
The People-Based approach

Over time, you’ll have entire behavioral profiles dedicated to specific email addresses. Each profile is
a representation of how an individual has interacted with your business—the actions they took while
on your website and their method of engagement with your emails and your ads (opens, clicks, click-
throughs).
These profiles can then be used to target those individuals regardless of which device or browser the
visitor is using—so long as you have that handy email address with which to identify them.
In other words, through Behavioral Marketing you have the key to unlock People-Based Marketing.

People-Based Marketing, Defined.
People-Based Marketing is a function of Behavioral Marketing through which you can target an actual
individual based on the behaviors they exhibit while engaging with your business, regardless of the device,
channel or browser being utilized and regardless of whether they’re currently on or off your website.
Now, your marketing ad spend becomes less about how each isolated channel performs and more about
how those channels, your website, your email marketing and your ads work together to contribute to your
business growth.
Your marketing approach becomes holistic, addressing unique behavioral profiles of individuals in order to
create more relevant, more effective, and more valuable communications, with the ultimate goal of guiding
your traffic to their highest potential for your business.
Let’s take a look at SuzieQ’s experience with People-Based Marketing.

People-Based Marketing
SuzieQ visited BehavioralMarketing.com to learn more about
how she could implement Behavioral Marketing for her website.
SuzieQ wasn’t ready to apply for a demo, but she entered her
email address to download a guide to get more information.
Let’s take a look at the role of Behavioral People-Based
Marketing in SuzieQ’s experience after she abandoned
BehavioralMarketing.com:
1. It captured her email address while she browsed onsite in exchange for a
guide to Behavioral Marketing, which was emailed to that address
2. It emailed SuzieQ (and only SuzieQ) the downloadable guide
3. It tracked that SuzieQ opened the email multiple times but never downloaded
the guide
4. It showed SuzieQ an ad reminding her of the benefits of Behavioral Marketing
5. It re-emailed SuzieQ the guide, knowing she had yet to download it
6. Once SuzieQ downloaded the guide, it eventually followed up with her via
email, encouraging her to take a demo
7. It welcomed SuzieQ when she clicked through the email and dropped her off
on the demo page, guiding her through the registration flow
And so, SuzieQ returned to BehavioralMarketing.com, registered for a Behavioral Marketing demo,
implemented Behavioral People-Based Marketing on her website, and lived profitably ever after.
OpenedEmail Gmail
BehavioralMarketing.com
Ad

32 | Part 2: Behavioral Marketing, The Definition & The People-Based Approach
5
“What Are Personalizations Biggest Challenges and
Opportunities?” MarketingCharts. N.p., 2014. Web. 11 Aug. 2016.
Let’s get something straight. We’re talking People-Based Marketing, NOT Personalization.
Think back a few years, back to the emergence of what was then the revolutionary idea of Personalization.
The brilliance of Personalization, in theory, stemmed from the notion of a one-to-one approach to your
customers. Great idea. No question.
But it remained just that—a great idea—a great idea that never came to full fruition.
Ultimately, one tool did materialize from the idea of Personalization—Product Recommendation Engines. And
while Product Recommendation Engines are fairly widely used, particularly in the eCommerce industry, they too
have failed in their attempt at the one-to-one approach to marketing.
A Product Recommendation Engine is a system that seeks to understand and predict user preferences
based on the actions they take while browsing. Again, in theory, it’s a great idea. But let’s take a look at
how those problems with Personalization as identified by an Experian survey5
apply specifically to Product
Recommendation Engines.

The problems with Product Recommendation Engines (& Personalization)
1. INABILITY TO LINK DIFFERENT TECHNOLOGIES
Because they’re cookie-based, Product Recommendations cannot accurately predict across device or
browser types. So, if you’re shopping on your desktop at work and later return to that website on your
phone, the Product Recommendation Engine can’t identify what you previously looked at when making
recommendations.
2. POOR DATA QUALITY
Since Product Recommendation Engines rely primarily on clicks and conversions, the recommendations
aren’t always insightful. For example, if you last purchased the first Harry Potter book, it might suggest the
second Harry Potter book as opposed to one of a similar genre. Furthermore, it relies on historical data. If
you purchased boots on a website during the winter, it would recommend similar boots even though you’re
now looking for summer sandals.
3. LACK OF RELEVANT TECHNOLOGY
Until now, there hasn’t been a great understanding of how to implement Personalization. It just seemed
like the best approach to everything. As a result, the Product Recommendation Engine often becomes
a disruptive experience. If you know what you’re looking for when browsing a website, the constant
presence of product recommendations simply adds more clutter and distractions to your experience.
There was no method to personalization. It’s simply been implemented wherever and whenever possible
for the sake of creating a “personal” experience.

Alternatively, People-Based Marketing represents the actualization of the idea behind Personalization.
The problems that made Personalization previously impossible make the one-to-one approach entirely
possible with the People-Based method.
PROBLEM PERSONALIZATION PEOPLE-BASED MARKETING
Cross Device/
Browser
Functionality?
No.
Cookie-based—visitor information tied to a
specific cookie on a specific device or browser
Yes.
People-based—behavioral profiles linked to a
specific email address that can be identified
across any device or browser
Data Quality? Poor.
Businesses lack ability to manage, analyze,
and create targeted insights based on mines
of customer data.
Great.
Behavioral Marketing tracks, analyzes, and
manages the information for you, creating
behavioral profiles for each individual email
address.
Relevant
Technology?
Not Available.
The Product Recommendation Engine was the
only real tool that came to exist, but it too has
failed for these reasons.
Available.
Behavioral Marketing Software allows you to
create individualized experiences with your
browsers based on how visitors engage with
your business across any device, any channel,
and at any moment in time.
One final key result of People-Based Marketing lies in the impact of coupling your People-Based
Marketing strategy with your Behavioral Marketing strategy. With the Behavioral Marketing approach
to People-Based Marketing, you can expect a 38% people-based identification rate.

36 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs
We’re finally here—the section of the book devoted to helping you understand how Behavioral Marketing
will address each of those opportunities that presented themselves in the problems described in Part 1:
Marketing, the current state of affairs:
Don’t let your website sabotage your conversion rate:
Unlock more value from your traffic
If your acquisition channels are maxed out:
Shift your acquisition ROAS curve upward
If your retargeting channels are ROI negative:
Make them revenue channels
Addressing the current state of affairs

37 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Opportunity #1
OPPORTUNITY 1:
Unlock more value from your traffic
Remember that 92:1 ratio that the majority of Marketers are stuck using, as it applies to spending more
money driving traffic to their websites? It’s time to start dedicating a little more time and a lot more money
to the website side of that ratio. You’ll discover a world of value that, if addressed correctly, will help you
increase the quality of the expensive traffic you’re already paying for.
It all starts with one of my original questions: If I told you that there’s currently a not so hidden treasure
chest on your website just waiting to be unlocked, would you believe me?
Well, you should. It’s your business’ Digital Goldmine, after all.
Let’s take a look at how to discover your Digital Goldmine by focusing on the various views of your funnel:
• The Myopic View
• The Low—Very Low Intent View
• The Medium—Very High Intent View

38 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Opportunity 1
Discovering your business’ Digital Goldmine
We’ll start again with your Myopic Funnel, assuming your
average website has 10 million monthly unique visits.
Currently, you’re spending the majority of your marketing
budget to drive those 10 million monthly unique visitors to
your website. Think 92:1 ratio.
You’re treating the majority of those visitors, if not all of them,
exactly the same when they arrive on your site, regardless
of how deep into the funnel they journey, regardless of
what kind of visitor they are, and regardless of what their
conversion potential might be.
Knowing that a Digital Goldmine exists on your website, let’s
take another look at the conversion funnel for that same
average website, this time keeping in mind that we’re living in
the new era of visibility. With the data available to us and our
conversion goals in mind, let’s split our traffic up based on the
actions they took while on-site.

We’ll begin at the top of the funnel:
The Low-Very Low Intent Traffic
Those visitors who typically spend less than 2 minutes on your
website—both the hard bounces and those users who are simply not
interested in what you’re offering.
• What you’re doing right now: Wasting money. You’re wasting
money on the visitors who have already told you that they are
not interested in what you’re offering.
• How you’re wasting money: You’re paying to retarget them
after they abandon; you might be paying for optimized landing
pages, paid ad spend or SEO.
• What you should be doing: Let them go. LET THEM GO. Focus
your attention and money toward the traffic that is actually
interested in your product(s)—the traffic that actually has
conversion potential.

The Medium-Very High Intent Traffic
Those visitors who are clearly interested in your product but are
simply not ready to complete a conversion.
• What you’re doing now: Not enough. You’re letting these
visitors abandon your website with no effort spent toward
convincing them to continue their journey toward conversion
and no way of continuing a conversation with them once they
leave.
• What you should be doing: You know that old saying, “You gotta
spend money to make money”? Well, it’s true. Even more true:
You gotta spend money in the right places and on the right
people to make money. In other words, focus your attention and
money toward that medium-high intent traffic on your website—
your Digital Goldmine.
The Digital Goldmine represents the engaged cohort of
your website traffic that is clearly interested in what your
website is offering based on the actions they choose to
take on your website. These behavioral cohorts and their
displayed intent will differ across every vertical, industry,
and even website based on the key performance indicators
the business is looking to achieve.
THE DIGITAL
GOLDMINE
(a definition)

So, returning to our opportunity—unlocking more value from your website—let’s look back at the 2
mathematical ways to drive more revenue for our business: increasing traffic & increasing revenue per session.
It’s about time we focus on the 2nd method and start boosting the quality of your traffic in order to grow your
revenue per session.
With your newfound ability to track visitor engagement at various stages of the conversion funnel, you can
understand how the actions these prospects take on your website translate to conversion intent. More
importantly, you can now focus on that most valuable traffic with the potential to drive more revenue for your
business—your Digital Goldmine.
Think back to your Myopic Funnel. You’re currently
treating all your traffic the same. This treatment
applies both to conversion intent and visitor type—
whether an individual is a prospect or a returning
customer.
The best approach is to segment your funnel
based on both conversion intent and visitor type,
considering prospects take 5X as long as returning
customers to make a first conversion. Prospects
require extra attention and more convincing, so offer
them a special discount or exclusive incentive in
order to help alleviate that first-time purchase friction.

Let’s review a couple of actionable takeaways:
With these takeaways in mind, how do you actually unlock that conversion potential and drive more
revenue per session for your business? Enter Behavioral Marketing.
Behavioral Marketing software allows you to track visitors’ digital body language in real-time as they
express themselves on your website, providing you with visibility into your Digital Goldmine. You’ll
target that valuable traffic and create reactions in real-time to help nudge those visitors to the next most
profitable action on your website.
Let’s take a look at how Behavioral Marketing manifests in a few real-world scenarios. Click the most
relevant example for your business to jump to that scenario, or flip through the next few pages.
• eCommerce (Conversion with a cart): Conversion Goal—Purchase
• B2B/Lead Generation (Conversion without a cart): Conversion Goal—Lead Capture
• Publishers: Conversion Goal—Email Capture
1
2
Identify your Digital Goldmine and the digital body language of those who represent your
medium-very high intent traffic
Focus your marketing efforts toward your Digital Goldmine and pushing those visitors with
conversion potential toward the next-most productive and profitable action on your website

43 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Opportunity 1 > Real World Scenario—eCommerce
Behavioral Marketing for eCommerce
Let’s walk through SuzieQ’s shopping experience
at RetailStore.com.
What did RetailStore.com do in this scenario?
1. It identified SuzieQ as a high-intent shopper
since she made it to a product page.
2. It recognized SuzieQ’s interest in a particular
product because she’s reading the product
reviews.
3. It created a behavioral experience to guide
SuzieQ toward the next-most productive
action: adding the item to cart and making
a purchase.
RETAIL
STORE
CATEGORIES
REVIEWS
ADD TO CART
ADD TO CART
GET YOUR SHIRT NOW
THANK YOU
FOR YOUR PURCHASE
SuzieQisShopping
1 SuzieQisBrowsing
2
SuzieQisInterested
3 SuzieQisReallyInterested
4
DigitalSalesAssociateHelps
5 SuzieQPurchased
6

44 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Opportunity 1 > Real World Scenario—B2b/ Lead Generation
SuzieQ is looking to upgrade the internet plan for
her business. Let’s take a look at her experience
shopping on Internet.com.
What did Internet.com accomplish in this scenario?
1. It identified SuzieQ as a prospective client.
2. In the moment SuzieQ was going to
abandon, it captured her information by
giving her an incentive. (Why do most
people hesitate? Cost!)
3. Now, SuzieQ has been added to their
email list and Internet.com has the ability to
continue a conversation with SuzieQ on a
one-to-one basis.
Behavioral Marketing for B2B/Lead Generation
PRICING PLANS
$70 $80 $90
SEND ME OFFERS
SPECIAL OFFER
SUZIEQ@GMAIL.COM
INTERNET.COM
INTERNET.COM
PRICING PLANS
$70 $80 $90
PRICING PLANS
$70 $80 $90
Hmm...
SuzieQisShoppingforInternetPlans
1 SuzieQisInterested
2
SuzieQisHesitating
3 SuzieQisLeaving
4
DigitalSalesAssociateStepsIn
5 SuzieQ BecomesaLead
6

45 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Opportunity 1 > Real World Scenario—B2b/ Lead Generation
Many businesses rely heavily on the digital side of their companies for lead generation, while the actual
conversion might still happen over the phone or in a brick and mortar store. It’s crucial to ensure that even if
this is the case, the digital business can still be a major contributor to the overall business for brand recognition,
product education, and promotional offers.
See Behavioral Marketing at work for Comcast Business, boosting its growth through a strong lead pipeline.

46 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Case Study
Opportunity: Comcast Business provides crucial telecommunication services to small businesses
across the country. Their small but innovative team has been deploying cutting-edge campaigns
to quickly scale their business offering. Comcast knew that capturing quality leads was the best
opportunity for revenue growth.
COMCAST BUSINESS SEES STRONG GROWTH
WITH BOUNCEX LEAD GENERATION CAMPAIGNS.
Comcast Business + BounceX

47 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Case Study
Solution: Comcast Business had existing lead capture campaigns deployed on its website. The
BounceX team started by improving those efforts through effective funnel segmentation based
on various on-site behavioral triggers.
Working with Comcast and their digital agency, Digitas, the team identified the right messaging
for different traffic segments. Those efforts were supplemented with a continuous testing
schedule, delivering a series of winning targeting, copy, and creative combinations for each
consumer cohort.
Results: Comcast Business’ marketing team had an ambitious goal for their lead generation
efforts. BounceX was able to quickly deploy its highest-impact lead capture campaigns and
more than double the number of leads collected within the first 30 days.
Not only has the volume substantially increased, but the overall lead quality has also remained
high. Up to 20% of sales-qualified leads collected through BounceX campaigns are going to the
Comcast Business sales team.
“From painless implementation to almost immediate increase in site’s KPIs to ongoing
improvement over time, Bounce Exchange is a rare partner providing us with excellent value.”
-Brett Schultz, Senior Manager, Online Marketing for Comcast Business

48 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Opportunity 1 > Real World Scenario—Publishers
Behavioral Marketing for Publishers
SuzieQ recently found a new publisher,
whose articles she really enjoys.
She’s now reading the 10th article on
their website. Let’s take a look at her
experience on Articles.com.
1. Articles.com identifies that SuzieQ is
not yet on their email list.
2. Articles.com tracks that SuzieQ has
already read 9 articles, she’s now on
her 10th.
3. Articles.com understands
that SuzieQ is engaged
with the article.
4. Articles.com capitalizes on SuzieQ’s
interest by requesting her email
address in exchange for
full website access.
ARTICLES.COM
UNLOCK ARTICLE
PREMIUM
CONTENT
SUZIEQ@GMAIL.COM
SuzieQonArticles.com
1 SuzieQisReading
2
SuzieQisInterested
3 SuzieQisReallyInterested
4
DigitalSalesAssociateStepsIn
5 SuzieQ hasFullAccess
6

For Publishers, an email address is crucial to ensure your business can continue a conversation with
readers once they abandon your website. Additionally, by capturing the email address of those
readers most interested in your content, you set yourself up for the highest chance of success at
turning that email capture into a subscription down the road.

We’ve already discussed how your current acquisition channels are maxed out. You’ve reached the peak
of your acquisition efficiency for optimal performance.
So, the alternative is to focus on moving that ROAS curve upward and driving more revenue from the
revenue generating channels you’ve already established.
OPPORTUNITY 2:
Shift your acquisition ROAS curve upward

Let’s back up and start by thinking about the new traffic that arrives at your website via an ad—whether from
Google, Facebook, TV or Radio. Something about the ad content piqued their interest, something that they
probably expected to find upon clicking through the ad.
Now let’s think back to the way you currently treat your website traffic—exactly the same. Remember that
Myopic Funnel? In other words, regardless of the ad, the source, or the traffic type, these visitors receive
the same treatment once they land on your website.
Imagine that SuzieQ clicked through a Facebook ad for a summer sandal sale at her favorite store. When
she clicked through the ad, however, she landed on the store’s homepage with no mention of the summer
sandal sale in sight.
What do you think SuzieQ did next? She retreated back to Facebook.
The main point to be made is that the process of acquisition is not solely about the ad itself; it’s about the
entire ad experience. Whether heard, viewed, or read—if something about an ad piques a visitor’s interest
enough to encourage them to visit your website, capitalize on that interest once they arrive at your to drive
higher returns on your paid spend and shift that no longer immobile ROAS curve upward.
Enter Behavioral Marketing.
With Behavioral Marketing, you’ll unlock more revenue from your paid traffic via behavioral experiences
capitalizing on visitors’ interests. Furthermore, since you’ll unlock the ability to establish people-based
connections with those visitors, you’ll build a unique relationship with each of those individuals across all
marketing channels.

We’ll begin with the first part—capitalizing on the visitors’ interests. Think about the SEO strategy
that’s been working so well for you. You’re paying for particular search results based on the keywords
visitors search for.
Apply that strategy to your website. Create website experiences tailored to the ads your visitors are
clicking through. In doing so, you’ll create relevant experiences for that new traffic, experiences they’ll
likely engage with and react to.
Let’s take a look at SuzieQ’s experience when shopping for summer sandals with Behavioral
Marketing in play:
Get Free Shipping
Because We Our Facebook Friends
WebsiteShoe.com
SHOP NOW SHOP NOW SHOP NOW
WebsiteShoe.comFacebookAd TailoredExperienceonWebsiteShoe.com
SuzieQ sees WebsiteShoe.com’s Facebook ad while
browsing and clicks through because she’s interested in
the Summer Sandal Sale they’re currently promoting.
Upon landing on WebsiteShoe.com, SuzieQ is greeted
by a behavioral experience acknowledging that she
arrived from Facebook and echoing the promotion she’s
interested in.

Had WebsiteShoe.com not implemented Behavioral Marketing, SuzieQ’s transition from Facebook
to the website would have been disconnected. Instead, SuzieQ would have simply landed on the
website’s homepage, left to find her sandals of interest herself or, more likely, abandon altogether out
of frustration.
With Behavioral Marketing in place, SuzieQ’s transition from Facebook to the website is not only
acknowledged but continued, as it echoes the ad content she was originally interested in. In fact, the
on-site experience builds on SuzieQ’s interest, nudging her to the next most productive step based on
her interest.
Now let’s return to the second piece of what Behavioral Marketing can do for your acquisition
channels—create people-based connections with that newly acquired traffic. Here are a few facts to
note about the prospects you’re driving to your website:
With that in mind, it’s likely your new traffic will need more than the single session after clicking
through your ad to convert. So, you’ll need to establish an off-site connection with this new and
abandoning traffic in order to convince them to return.
How do you do that? People-Based Marketing.
How do you get that? You capture that email address.
How do you do that? You ask for it—Behavioral Marketing style.
1
2
75% of new prospects require more than 1 session to convert
It’s 5X more difficult to convince a prospect to convert as opposed to a returning customer

Let’s return to SuzieQ’s experience shopping for summer sandals. This time, WebsiteShoe.com has a
second objective of capturing SuzieQ’s email address:
While SuzieQ, as a prospect, is unlikely to drive revenue for WebsiteShoe.com on her first visit to the
website, by capturing her email address, WebsiteShoe.com now has the ability to target SuzieQ via
email and ads to convince her to return. To recap how Behavioral Marketing will help you shift your
acquisition ROAS curve upward and drive more revenue for your business:
See Behavioral Marketing in action on the next page for online retailer PRO Compression’s paid
Facebook traffic and how Behavioral Marketing allowed PRO Compression to reduce their CPA for
a higher return on their ad spend.
Unlock Free Shipping
Because We Our Facebook Friends
WebsiteShoe.com
GET FREE SHIPPING NOW
Your Free Shipping
Has Been Unlocked
WebsiteShoe.com
SHOP NOW SHOP NOW SHOP NOW
WebsiteShoe.comFacebookAd TailoredEmailCaptureonWebsiteShoe.com NurturingOnsiteExperience
By creating a seamless ad experience from the ad to your website, you’ll see a lower drop-off rate
once the visitor lands on your website and therefore a higher same-session conversion rate
By capturing an email address, you’ll unlock People-Based Marketing and have the ability to target
users across any marketing channel in order to convince them to return
1
2

55 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Opportunity 2 > Case Study
Opportunity: PRO Compression is an eCommerce retail store, specializing in graduated compression
socks that improve performance and shorten recovery time for those high-intensity workouts or
even for those long days spent on your feet. PRO Compression uses Facebook’s interest-targeting
capability to serve ads specifically to users who work in the healthcare and nursing industries.
PRO COMPRESSION SEES HIGHER RETURN ON THEIR FACEBOOK AD
SPEND WITH BOUNCEX BEHAVIORAL MARKETING EXPERIENCES
PRO Compression + BounceX

56 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Opportunity 2 > Case Study
Solution: While PRO Compression was targeting their niche audience effectively, they knew there was an
opportunity to increase the return on their ad spend by creating an on-site experience that would guide
their paid Facebook traffic toward conversion.
The team at BounceX created 2 behavioral experiences: one to capture email addresses and another to
provide a seamless transition from Facebook to PRO Compression. These experiences targeted PRO
Compression’s paid traffic on mobile devices, as mobile represents 80% of their total paid Facebook traffic.
Results: The 2 behavioral experiences targeting PRO Compression’s paid Facebook traffic proved to
be highly successful. Within the first 30 days, BounceX reduced PRO Compression’s CPA by 33%, while
increasing the conversion rate and growing the PRO Compression email list with new and
pre-qualified traffic.
“Working with the BounceX platform has been a phenomenal experience. We reduced the CPA on
our paid Facebook ads by over 30%, so we’re able to acquire more customers and grow our business.”
-Jeff Pennington, CFO at PRO Compression

Today, your retargeting channels—whether email or ads—are likely negative ROI channels for your
business. Transform these channels into driving forces behind your business growth with Behavioral
Marketing, or more specifically, People-Based Marketing. The key to unearthing the power of your
retargeting channels can be found in the identification and recognition of your website visitors as
individuals with unique relationships to your business.
Let’s start with email. Recall those key action items from Opportunity #1: Unlock more value from your
traffic, where we discussed how to unlock more value from your website with Behavioral Marketing:
These same takeaways apply to your email channel, with one addition: People-Based Marketing.
You’ll now spend your marketing dollars on the traffic that has the highest potential to convert instead
of simply targeting everyone on your list. People-Based Marketing solves the unsophistication of your
current outreach strategies, eliminating the need for the “Batch and Blast” approach. It allows you
to create a dialogue between your business and a single individual, based on the way that individual
engages with your business and their propensity to purchase, regardless of channel or device.
OPPORTUNITY 3:
Make retargeting a revenue channel
1 Identify your Digital Goldmine and the digital body language of those who represent your
medium-very high intent traffic
2 Focus your marketing efforts on your Digital Goldmine and pushing those visitors with
conversion potential toward the next-most productive and profitable action on your website

58 | Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Opportunity 3 > Real World Scenario—B2B/ Lead Generation
Behavioral Email for B2B/Lead Generation
After she abandoned, Software.com sent
SuzieQ an email that was relevant to her.
Because she downloaded the initial Facebook
Advertising Guide, Software.com capitalized
on that interest by sending an email that
showcased more in-depth and industry-
focused guides on that same subject.
To download the Facebook Advertising Guide
and all future content, SuzieQ is directed
to return to Software.com to complete the
transaction and receive the content. With
behavioral email, Software.com can continue
to nurture their relationship with SuzieQ and
keep her returning to their website until she’s
ready to invest in what they’re offering.
W Since You're Interested in Facebook Advertising
Get Successful With
Facebook Advertising
e-Commerce
b2b
Travel
SuzieQ'sEmailFromSoftware.com
SuzieQ visited Software.com to learn more about their product offerings. Before leaving, she
downloaded a guide on Facebook Advertising, suggesting an interest in Software.com’s advertising tool.

Behavioral Email for Publishers
Following her abandonment, she received an
email from Articles.com reminding her that her
subscription was pending and what she’d miss
out on by not suscribing.
Based on SuzieQ’s behavioral profile,
Articles.com can identify the types of content
she’s most interested in. By including her
favorite categories in the email, Articles.com
takes the idea of subscription abandonment
one step further—approaching SuzieQ as an
individual with unique interests, as opposed to
part of a group of subscription abandoners.
W Your Subscription Is Pending...
Articles.com
UNLOCK EXCLUSIVE ARTICLES FOR
YOUR FAVORITE CATEGORIES:
MARKETING NEWS
WORLD NEWS
LIFESTYLES & CULTURE
COMPLETE MY SUBSCRIPTION
SuzieQ'sEmailFromArticles.com
SuzieQ decided that it’s time to invest in a subscription with her favorite publisher, Articles.com.
However, once she began the subscription flow, she hesitated because of the price, and abandoned
the website.

Contrary to the “Batch and Blast” approach, Behavioral Email allows you to send your traffic content
that will resonate with emails that are tailored to the behavioral profile associated with their email
address.
Suddenly, an email from your business is more than another marketing email: It’s a relationship.
1. Email List Fatigue, No More: Send behavioral emails with relevant content once a visitor’s
engagement with your business reaches a particular point. Your unsubscribe rate will be reduced
and with it, your list fatigue.
2. Human Capital, No Longer: With Behavioral Automation Software, your internal team will no
longer need to create 90% of your emails manually. In fact, that ratio can be flipped—10% of
emails produced internally and 90% managed by your Behavioral Marketing platform and team
of experts.
3. ROI, It’s Positive: Make your Behavioral Marketing email a truly ROI positive channel for your
business by:
• Identifying your most valuable traffic
• Targeting your most valuable traffic with relevant emails
• Sending your most valuable traffic relevant emails based on their unique digital body
language
THE BUSINESS-REWARDING IMPACT OF BEHAVIORAL EMAIL :

Now for Ads.
You’re currently spending far too much money on a retargeting ads strategy that is doing very little for
your business.
The solution: Segmentation. Or more specifically, a strategy segmented between your prospects and
your returning customers.
At a rate of 5X less likely to complete a conversion than a returning customer, prospects should be the
focal point of your retargeting ads strategy. They often require up to 9 sessions to convert, so retargeting
ads simply make sense. Keep them coming back until they’re ready to complete that first conversion.
That said, it’s not as simple as showing these prospects a standard ad.
The key: Behavioral People-Based Marketing.
Of course, start by identifying your Digital Goldmine—within which you’ll find your most qualified prospects.
Assuming you have targeted behavioral experiences in place on your website to capture the emails of your
most qualified prospects before they abandon, you’ve now unlocked the ability to target those prospects
the people-based way—across both email and ad real estate.

6
Smith, Thomas. Successful Advertising Its
Secrets Explained. London: Bazaar, 1886. Print.
Keeping in mind that these prospects require 5X the convincing, spread your retargeting strategy
cross-channel to ensure your voice is heard over the sea of marketing emails and retargeting ads
they’re already seeing.
In 1885, Thomas Smith revealed the secret to successful advertising when it comes to prospects
in his appropriately named guide, Successful Advertising6
:
The first time people look at any given ad, they don’t even see it.
The second time, they don’t notice it.
The third time, they are aware that it is there.
The fourth time, they have a fleeting sense that they’ve seen it somewhere before.
The fifth time, they actually read the ad [...]
The fifteenth time, they start to yearn for it because they can’t afford to buy it.
The sixteenth time, they accept the fact that they will buy it sometime in the future.
The seventeenth time, they make a note to buy the product.
The eighteenth time, they curse their poverty for not allowing them to buy this terrific product.
The nineteenth time, they count their money very carefully.
The twentieth time prospects see the ad, they buy what it is offering.
That said, it’s not just about showing an ad repetitively. It’s about showing the right ad based on
the behavioral profile you’ve compiled for each of your website visitors. Showing the right ad also
requires implementing the best bidding strategy based on those behavioral profiles.

The value of a conversion from a prospect is higher than that of a returning customer, as a
returning customer is 5X more likely to complete subsequent conversions. So, spend more
money (a higher CPA) on your most valuable prospects, whether that means offering them a
discount or exclusive offer; do what you have to do to get that first conversion.
Furthermore, if repetition is a key ingredient to successful advertising, make sure that each
message across every channel resonates with the user. Still, as we said, it’s not about endlessly
repeating the same message each time and across every channel. Lead the prospects toward
the next most profitable action for your business by combining your behavioral emails and your
behavioral retargeting efforts to ensure your qualified prospects take the action you want them
to take.
The holistic view of a visitor’s engagement with your business afforded to you by People-Based
Marketing will allow you to better understand and converse with your prospects as they journey
toward conversion.
Let’s take a look at SuzieQ’s experience with People-Based Marketing.

64 |
Behavioral Retargeting + Behavioral Email for B2B/Lead Generation
SuzieQ visited Software.com with potential interest in registering her company for a demo. Hesitating,
she entered her email address before abandoning the website to have Part 1 of a guide emailed to her.
Here’s what happened next:
Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Opportunity 3 > Real World Scenario
Email
EmailAds
Website
Ads
Software.com nurtured its relationship with SuzieQ across both behavioral email and ads based on
her engagement with their business both on and off their website. And now, SuzieQ has become a
customer and is 5X more likely to complete additional conversions with Software.com.
1. SuzieQ received an email with Part 1 of Software.
com’s Guide to Software. She didn’t open the
email.
2. SuzieQ then saw a behavioral retargeting ad,
highlighting the benefits of Software.com’s
technology.
3. SuzieQ returned to her email and downloaded
the guide.
4. SuzieQ later saw another ad for Software.com,
letting her know that all new registrants would
receive a free tech consult in order to better
understand how Software.com can help their
business.
5. SuzieQ clicked through the ad and signed up
for a demo.

Ultimately, the success of your retargeting strategy doesn’t boil down to simply targeting
prospects over returning customers. Rather, a positive ROI retargeting channel for your business
hinges on a targeted and unified approach to your outreach. That outreach—whether it be via ads
or email—should center around the individual you’re trying to convert.
If you want to retarget your returning consumers, have at it. But do so in a way that makes sense
for the individual you’re retargeting first—by focusing on the individual, the ultimate decision
maker, you’ll drive higher ROAS for your business.

66 | 7
Baekdal, Thomas. The Shift, From Print to Digital...and Beyond. N.p.:
n.p., n.d. Baekdal. Baekdal Media, 11 Oct. 2011. Web. 20 July 2016.
The emergence of Behavioral Marketing stems from the fact that humans are constantly searching for
ways to make their lives easier. Sure, technology has evolved and with it consumer behavior—but both
of those too stem from the Trend of Convenience.
We used to shop in stores. But in addition to being lazy, humans are busy.
So now we have eCommerce. Desktops don’t cut it, though—we can’t carry them around.
So now we have tablets and all sorts of mobile devices.
Lately, the transition to mobile has been all the rage, but mobile devices require pushing buttons.
So now we simply tell Amazon’s Alexa to order more Gatorade when the fridge gets low.
And it won’t stop there. As Baekdal rather eloquently puts it:
In other words: humans are going to continue to discover and invent new technologies to make their
lives increasingly more convenient.
So what does this mean for your business? Focus your business model on the identification of your
visitors and their behaviors, first. It’s not about which iPhones they’re using or if they’re browsing on an
Android tablet instead of the Kindle Fire. At the end of the day, the device itself is of little importance.
Similarly, the channel you’re targeting them with, whether email or ads, is irrelevant.
It’s about recognizing how each individual human interacts with your business as a whole, regardless
of device or channel, and utilizing that digital body language as a blueprint for growing your company.
Part 3: Behavioral Marketing, Addressing The Current State of Affairs > Conclusion
Mobile is not a device. It is not an app. Mobile is freedom
from devices and apps...Mobile is about people7
.
““

68 |
While the theory behind Behavioral Marketing is compelling, nothing compares to cold, hard numbers.
In an effort to quantify the ROI of Behavioral Marketing, BounceX commissioned a Total Economic
Impact™ Report by Forrester8
, using BounceX clients as examples. Please note that all numbers are
aggregated and a representation of the ROI potential of Behavioral Marketing for your business. The
ROI results speak solely to eCommerce and Non-eCommerce businesses (websites without a cart),
and thus will be separated as follows:
• ROI of Behavioral Marketing for eCommerce businesses
• ROI of Behavioral Marketing for Non-eCommerce Companies (websites without a cart)
ROI of Behavioral Marketing for eCommerce
According to the Forrester TEI™ study, the representative eCommerce organizations experienced the
following benefits as a result of their investment in the Bounce Exchange Behavioral Marketing Cloud™:
Part 4: Behavioral Marketing, The Business Case > eCommerce ROI 8
The Total Economic Impact of Bounce Exchange: Cost Savings and Business Benefits Attributed
to Bounce Exchange Behavioral Marketing Platform, Forrester Research, Inc., August 16, 2016.
9
Ibid.
15%INCREASE
Increase in prospect
conversion rate from
website traffic
20-25%INCREASE
IT and marketing full-
time equivalents (FTEs)
productivity gains
50%INCREASE
Increase of margins by
reducing the need for
affiliate-driven revenue
Ultimately, “The analysis points to risk-adjusted benefits of $5,852,806 for our
representative eCommerce organizations...over three years, which leads to 1,107%...ROI.”9
The Business Case

69 | Part 4: Behavioral Marketing, The Business Case > e-Commerce ROI > Benefit 1
ROI OF BEHAVIORAL MARKETING FOR ECOMMERCE
Benefit 1: Increase prospect conversion rate
As discussed in Part 3: Behavioral Marketing—Addressing the Current State of Affairs, Opportunity
#1—Unlock more value from your website traffic, a tailored approach to targeting your traffic is crucial.
Since prospects convert at a rate 5X lower than returning customers and can require, on average,
up to 9 sessions to make that first conversion, ensure your behavioral marketing strategy alleviates
their conversion friction by nurturing their interest. Ultimately, in spending additional efforts on your
prospects, you expand your returning customer base, unlocking the potential for incremental revenue
from those who convert at a rate 5X higher.
Still, we have yet to discuss how the tailored approach affects your bottom line.
According to the Total Economic Impact™10
research, focusing your marketing attention toward your
prospects results in a massive lift in incremental digital revenue. With Behavioral Marketing:
10
The representative eCommerce organization was
able to improve its conversion rate by 15%, which
results in over $5 million of incremental revenue.
“
“

70 |
Benefit 2: Increase IT & marketing productivity
In Part 1: Marketing today, the current state of affairs, Problem #3: Your retargeting channels, we
realized that our retargeting channels are likely negative ROI channels.
Behavioral Marketing not only transforms the “Batch and Blast” approach to retargeting, but
simultaneously opens up your business to increased productivity and innovation. According to
Forrester’s TEI™ research11
,
That is to say, by investing in the BounceX Behavioral Marketing Cloud™, the representative
eCommerce organization saw between a 20% and 25% increase in productivity in both their digital
marketing team as well as their IT team.
With Behavioral Marketing, you’ll have a software that eliminates a lot of the manual processes
associated with optimizing your digital funnel. Now, you’ll have the capabilities to test and develop
new behaviorally driven ideas quickly and easily. With an entire Behavioral Marketing team of
experts and strategists, from design to developers to conversion scientists, at your fingertips, you’ll
finally have the ability to focus on forward-looking strategies for your business as opposed to
reacting to the current state of affairs.
Part 4: Behavioral Marketing, The Business Case > e-Commerce ROI > Benefit 2 11
Ibid.
The representative eCommerce organization estimates at least a 20% increase
in productivity for its five-person digital marketing team and a productivity
gain worth 25% of one IT FTE from working with Bounce Exchange.
“
“

71 | Part 4: Behavioral Marketing, The Business Case > e-Commerce ROI > Benefit 3
Benefit 3: Reduce the need for affiliate-driven revenue
As you’ve realized, marketing as it stands today is causing your business growth to plateau. For
eCommerce companies, specifically, one of the reactions to this sluggish state of affairs has been
an increased reliance on affiliate partner websites to help drive sales.
While affiliate partners contribute to sales, ultimately they have a negative impact on business
growth. The most “successful” affiliate partnerships typically arise from a high reliance on
discounts. With discounts, although it becomes easier to drive more traffic to your website, the
quality of that traffic decreases and your traffic becomes trained to rely on discounts as a result.
Additionally, affiliate partnerships are based on a revenue share attribution model, requiring your
business to pay a percentage of the gross sales to the affiliate partner. So not only are you hurting
your margin, but you’re also paying to to do so.
However, considering the goal of Behavioral Marketing is to increase your business’ bottom line
by generating higher returns from your most valuable website traffic, the need for affiliate partners
should decrease. In fact, according to Forrester’s TEI™ report12
:
12
Prior to Bounce Exchange, the representative eCommerce organization relied on
affiliate partners to generate about 40% of their revenue. The average cost to generate
revenue through affiliate partners was 8% of its gross sales. With Bounce Exchange, the
representative eCommerce organization was able to reduce its reliance on using third-
party services to help capture and convert its website traffic to customers by 50%.
“
“

72 |
In other words, as opposed to investing in affiliate partners that ultimately damage your margin and
provide a negative ROI, with Behavioral Marketing you’ll get more value from the traffic already on
your website, saving your margin in the process.
To access the full details from the Forrester Total Economic Impact study for BounceX, click here.
ROI of Behavioral Marketing for Non-eCommerce Companies
The Forrester TEI™ study13
found that the representative Non-eCommerce companies experienced
the following benefits as a result of their implementation of Behavioral Marketing:
While the above benefits are applicable across all Non-eCommerce businesses, the following
examples pertain specifically to Publishers.
Part 4: Behavioral Marketing, The Business Case > Non-eCommerce ROI
50%INCREASE
Increase in Email
Capture Rate
15%INCREASE
Increase in Marketing
and IT Productivity
50%INCREASE
Increase in
Advertising Revenue
13/14
The analysis identifies “risk-adjusted benefits of $4,015,023 for our representative
publishing organization over three years, which leads to 934% ROI.”14

73 | Part 4: Behavioral Marketing, The Business Case > Non-eCommerce ROI > Benefit 1
ROI OF BEHAVIORAL MARKETING FOR NON-ECOMMERCE
Benefit 1: Increase email capture rate
For Non-eCommerce companies, email addresses or leads are key to owning your audience
and nurturing a relationship between the individuals interested in what you’re offering and your
business. Email and lead capture play a crucial role in developing that relationship by allowing you
to identify your most valuable traffic and continue a conversation with those individuals regardless
of where or how they might be browsing—the first step to unlocking People-Based Marketing.
According to Forrester’s TEI™ research15
:
That is to say, by applying Behavioral Marketing technology and strategies, the representative
organization identified 50% more of their current traffic. In increasing the rate of traffic
identification, the organization now has the ability to use People-Based Marketing and retarget
more of their traffic regardless of where or how they’re browsing via Behavioral Email and
Behavioral Audiences (ads).
15
The Total Economic Impact of Bounce Exchange: Cost Savings
and Business Benefits Attributed to Bounce Exchange Behavioral
Marketing Platform, Forrester Research, Inc., August 16, 2016.
Through its investment in Bounce Exchange, the representative publishing
organization was able to increase its email capture rate by 50%...The representative
publishing organization estimates that a value of an email address is $0.50, which
translates to over $180,000 incremental revenue each year for the organization.
“
“

74 |
Think about the amount of time and human resources that currently contribute to your marketing
efforts. Let Behavioral Marketing take some of that human capital off your hands by automating the
processes by which you target and speak to your current traffic.
Suddenly, you’ll find that your team has the time to work on more forward-thinking and strategic
projects. According to Forrester’s TEI™ study16
,
That is to say, by investing in the BounceX Behavioral Marketing Cloud™, the representative non-
eCommerce organization saw a 15% increase in productivity in their digital marketing team.
Behavioral Marketing software has been designed to reduce–if not eliminate—the manual
processes associated with optimizing your digital funnel. Once in place, you’ll be able to test and
develop new behaviorally driven ideas quickly and easily with the help of an entire Behavioral
Marketing team of conversion experts, from strategists to designers to developers. You’ll finally
have the ability to focus on forward-looking strategies for your business as opposed to reacting to
day to day events.
16
The representative publishing organization estimated a 15% increase in
productivity for its 35-person digital marketing team and a productivity
gain worth one IT FTE from working with Bounce Exchange.
“
“
Benefit 2: Increase Marketing and IT Productivity
Part 4: Behavioral Marketing, The Business Case > Non-eCommerce ROI > Benefit 2

75 | Part 4: Behavioral Marketing, The Business Case > Non-eCommerce ROI > Benefit 3
17
Benefit 3: Increase advertising revenue
Many companies today, particularly publishers, rely heavily on ad impressions to drive revenue for
their businesses. Considering the goal of Behavioral Marketing is to guide individuals through your
digital funnel, it’s likely that your Behavioral Marketing strategy will contribute to your ad revenue.
According to Forrester’s TEI™ report17
:
In other words: the representative organization saw a 50% increase in pageview depth and
therefore an increase in ad revenue as a result of the Behavioral Marketing experiences designed
to engage and nurture their on-site traffic.
To access the full details from the Forrester Total Economic Impact study for BounceX, click here.
Prior to their investment, an average prospect made 3 pageviews while
visiting the company’s website. This increased to 4.5 page views, which
results in additional risk-adjusted advertising revenue of $918,000 per year.
“
“

76 | Part 4: Behavioral Marketing, The Business Case > Conclusion
Ultimately, the ROI research depicted here demonstrates that regardless of your business type,
Behavioral Marketing will be a ROI positive and revenue driving channel for your business.
It all boils down to the fact that Behavioral Marketing is a people-based solution. It’s about
centering your business around the consumer experience as opposed to focusing on a particular
channel or product of your business and hoping for the best results.
Your consumers are ultimately your greatest investment—they’re the driving force behind your
business. With Behavioral Marketing, you’ll have the ability to double-down on that investment,
amplifying your bottom line and growing your business up and to the right in the process.
18/19
17 18

78 |
At this point, you should understand the following:
So let’s talk about what to do once you’re ready to invest in Behavioral Marketing.
For starters, make sure your team is well-equipped when it comes to your Analytics, Tech Stack, and your
current Marketing Channels in order to unlock the value from Behavioral Marketing software and drive
success for your business. The following chart will help you understand where your business should be
in order to fully reap the ROI from Behavioral Marketing.
What Behavioral Marketing is
How Behavioral Marketing works
Why your business should invest in Behavioral Marketing
Part 5: Behavioral Marketing, The Purchase Process
The purchase process

79 | Part 5: Behavioral Marketing, The Purchase Process
Current Status
of Your Data &
Analytics
• No Analytics Platform
• No Segmentation Capabilities
• Marketing Funnel: Not available
• Analytics Platform in place
• Basic Segmentation Capabilities
• Marketing Funnel: Myopic
• Analytics Platform in place
• Advanced Segmentation
• DMP (Data Management Platform)
implemented
• Marketing Funnel: Digital Goldmine
acknowledged
Current Status
of Your Tech
Stack
• No ESP (Email Service Provider)
• No Triggered Email Program
• No A/B Testing
• ESP (Email Service Provider) utilized
• No Triggered Email Program
• Limited A/B Testing
• Large ESP (Email Service Provider) utilized
• Basic Triggered Email Program
• A/B Testing Pipeline
• [eCommerce-Specific] Product
Recommendation Engines used
Current Status
of Your Digital
Marketing
• No Paid Marketing Campaigns
• No Retargeting
• No Email Acquisition Strategy
• No Ad Budget
• AdWords, Facebook Google: Basic
campaigns
• Broad Retargeting: No Segmentation
• Basic Email Acquisition Strategy
• Monthly Ad Budget: Less Than $10K
• AdWords, Facebook Google: Advanced
campaigns
• Advanced Retargeting: Segmented strategy
• Advanced Email Acquisition Strategy
• Monthly Ad Budget: Greater Than $10K
• Clear and Defined Business Strategy
THE STATUS
OF YOUR
BUSINESS
YOU’RE READY
FOR BEHAVIORAL
MARKETINGALMOST READYNOT READY
BEHAVIORAL MARKETING’S ROI POTENTIAL FOR YOUR BUSINESS

80 | Part 5: Behavioral Marketing, The Purchase Process
So, you’re ready to invest in Behavioral Marketing.
But where does the budget come from?
As a new marketing channel for your business, Behavioral Marketing software typically lives within the paid
media budget or whichever bucket has your AdWords or Facebook Advertising spend.
In some unique cases, because of its software component, we’ve seen Behavioral Marketing aligned with the
technology budget.
Finally, how do you find the Behavioral Marketing partner that will best address the needs of your business?
Make sure your Behavioral Marketing Partner understands your business’ bottom line and how to get there.
Here are a few questions to start with when assessing your options:
• Define what Behavioral Marketing means to your business.
• Can you identify anonymous website visitors via 10+ sources on and off your website?
• Can you link a single visitor across all devices and browsers?
• Can you track all aspects of visitor behavior in real time, collecting 100s of behaviors before and after the page loads?
• How does your company define and implement People-Based Marketing?

81 | Part 5: Behavioral Marketing, The Purchase Process > BounceX’s Behavioral Marketing Cloud
BOUNCEX’S BEHAVIORAL MARKETING CLOUD™
Top 5 Marketing Channel: BounceX is a new, top 5 marketing channel. We exist right up there with
Facebook and Google as a core infrastructure to marketing execution by amplifying the marketing
investments you’ve already made and ultimately enhancing your business’ bottom line.
Behavioral Marketing Cloud™: BounceX has solved the most prominent digital pain points across
all industries and designed a behavioral software, the Behavioral Marketing Cloud™, dedicated to
addressing each of those pain points both on and off your website.
People-Based Marketing: With the BounceX ID engine, we work to identify and profile your
anonymous visitors regardless of where they might be browsing or which device they might be
browsing on.
• The industry average for a People-Based identification rate is roughly 5%.
• The BounceX average for a People-Based identification rate is 38%.
White Glove Service: Our world-class design studio, cutting-edge developer team, and expert
conversion scientists combine talents from many practices to move the needle for your business.
Our campaigns never stop learning, and you never have to lift a finger.
WHY BOUNCEX?

82 |
Behavioral ID Engine: Identifies and profiles anonymous website visitors to unlock previously
impossible targeting opportunities both on and off your website.
Behavioral CMS: Increases the revenue per session for you current traffic by adapting your
website to real-time digital body language displayed by your traffic.
Behavioral Email: Transforms your email program with intent-based, on-site email collection,
resulting in hyper list growth and deploying fully automated emails based on the behavioral
profiles created by the Behavioral ID Engine.
Behavioral Audiences: Revolutionizes your acquisition and retargeting strategy by extending the
information gleaned via the Behavioral ID Engine (both on-site and email behavioral data) across
the Internet.
Behavioral Ads: Enhances the ad experience to drive greater on-site engagement for publishers
and maximum performance for advertisers by determining the best and highest-yielding moment
to engage each visitor with a relevant ad.
BOUNCEX BEHAVIORAL MARKETING CLOUD™
Part 5: Behavioral Marketing, The Purchase Process > BounceX’s Behavioral Marketing Cloud
Click Here to Apply for a Behavioral Audit Today

83 | About This Guide
WRITTEN BY:
Ryan Urban
CEO, BounceX
CONTRIBUTORS:
Mili Mehta
Lead Writer, BounceX
Steve Dong
Product Manager, BounceX
Maricor Resente
VP of Marketing, BounceX
Julia Spano
Senior Director of Marketing Partnerships, BounceX
Dave Campbell
Director of Business Development, BounceX
Jake Sullivan
Director of Publisher Yield, BounceX
Jackie Lusardi
Director of Client Strategy, BounceX
Inge Konther
Conversion Director, BounceX
DESIGNED BY:
Rishi Arora
Senior Graphic Designer, BounceX
Bill Harkins
Senior Graphic Designer, BounceX
Contact BounceX:
Enterprise Sales: Enterprise@bouncex.com
Careers: Careers@bouncex.com
Press Inquiries: Press@bouncex.com
By Phone: (212) 292—3162
About BounceX:
BounceX’s Behavioral Marketing Cloud™ de-anonymizes website visitors, enabling
organizations to unlock people-based marketing experiences. For the first time, online
businesses are able to target previously unidentifiable opportunities both on and off
their website. BounceX software is trusted by global enterprises such as Lufthansa,
Sears, Uniqlo, Hearst Properties and Comcast.
Learn more at www.bouncex.com
ABOUT THIS GUIDE
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