02 Feb Make the Most of Your First-Party Data
Do you have a strategy in place for optimizing your first-party data?
How is your business making the most of their first-party data? How will you navigate in a world with reduced access to information provided by third-party browser cookies? The Advertising industry has been grappling with these questions for quite a while. While these questions may be new to your team, they are relevant across all industries.
What is first-party data?
First-party data—proprietary information that a company collects directly from the customer, with consent—is critical for improving relationships with customers and driving better business results.
What demographic and behavioral data is available to you via your loyalty program, website analytics, CRM system, social media insights, and email platform?
Strategically capturing, storing, and utilizing the power of first-party data can propel your company miles ahead of your competition.
Interest in Optimizing Marketing’s Use of First-party Data is Increasing
According to ADWEEK, “cookie deprecation, the declining supply of mobile ads IDs (MAIDS), anticipated third-party data constraints, and increased eCommerce goals” are fueling a corporate commitment to identify and implement proper first-party data protocols.
“As a result, first-party data has emerged as a critical asset to companies big and small. Not only does it offer powerful insights, but first-party data is also completely free and tends to be more accurate than data provided by third parties, given it is information consumers give brands directly.”
Of course, prioritization of first-party data has not been uniform across all industries.
“Financial services and automotive brands were among the trailblazers, with clear-cut use cases and strong supplies of first-party data, but we now see this strategy being implemented across all verticals: retail, financial services, DTC, tech, telecommunications, automotive, entertainment and more.”
First-party Data is the Foundation for Data-driven Marketing
Data-driven marketing uses first-party data to deliver highly personalized experiences to consumers.
Research conducted recently by Boston Consulting Group (BCG) determined that data-driven marketing can double revenue and increase cost savings by 1.6 times. However, only about 30% of companies are creating a single customer view across channels. Fewer than 3% are using data to deliver a full cross-channel experience for their customers.
What does a Successful Data-driven Marketing Strategy Involve?
In 2020, Boston Consulting Group (BCG) and Google interviewed marketing executives at 23 companies and seven advertising agencies across North America. The key findings from this study highlighted four actions taken by top brands when creating a sustainable data-driven marketing strategy:
- Develop a comprehensive data strategy to prioritize investment and garner buy-in
- Identify what data points are essential to meeting business goals
- Identify the platforms where essential data can be collected
- Free yourself from the time, effort, and expense of collecting and warehousing data that you don’t need
- Develop a first-party data collection and implementation roadmap
- Establish costs for tools
- Establish costs for in-house data analytics and/or analysts
- Strive to increase data literacy at all levels of the organization
- Test, learn, and measure to determine the best activation methods
- Provide clear value to users in return for consent to collect data at various stages of the customer journey
- Match the value of the reward (exclusive content, discount or promotion, exclusive merchandise, exclusive experience) to the level of data being provided (social media follow or “like”, email opt-in, loyalty program participation, customer lifetime value, etc.)
- Build robust in-house tech capabilities while relying on strategic partners for other kinds of expertise
Your First-Party Data Plan: Core Audiences, Tailored Messaging, Landing Pages, Registration
We’ve curated this list of actions to help you build a solid first-party data plan:
Map core audiences to core business challenges – One of the most unrealistic statements from a business owner is “we have something for everyone!” Simply delivering a message to a consumer is not enough. Will your message be opened? Will your message be of value? Segmentation, personalization, and tailored messaging are required to break through the clutter.
Tailor messaging per audience segment and business goal – Stop creating general one-size-fits-all content. A generic message is least likely to convert as a call-to-action. Create multiple, distinct conversations.
Drive to audience-specific landing pages – Build out analytics conversion goals and pay attention to your metrics.
Register Your Customers – Collect names, email addresses, zip codes, etc. Implement lead collection in return for free downloads, free events, free access to case studies, e-books, etc. Collect first-party data for anyone who consumes the content you produce, even if they don’t sign-up to receive your emails during a site visit.
Ask for limited amounts of information. Make the process as effortless as possible for your prospects. Vary the type of information required in exchange for content at different points along the customer journey.
Your First-Party Data Plan: Platforms, Partners, AI, and Loyalty Programs
Invest in a customer relationship management (CRM) or customer data platform (CDP) – Valuable information about consumers comes from a variety of sources, including purchase history, website analytics, mobile apps, social media, emails, surveys, live events, and customer service interactions. You need a platform that stores and synthesizes information from multiple data points. You also need a training plan, so that individuals across the organization can run reports, create segmented lists, and mine for insights.
Segment high value (HVA) customers – These could be the customers who purchased most recently, buy most frequently, or those who spend the most per transaction. Some businesses may also want to prioritize long-time customers who have recently gone dormant.
Identify campaign partners who can assist in capturing behavioral data about shared audiences – For each of your target audiences, identify possible campaign partners. What other companies collect information on your audience’s attributes, including demographics, multicultural affinity, parenthood status, device usage, leisure spending, etc.? What joint promotions could you run? How could information, gathered ethically during the campaign, benefit both companies?
Consider implementing a Loyalty Program. Loyalty programs are a proven way to incentivize consumers to engage more often with your organization and share more data with you in exchange for exclusive content, promotions, and merchandise, as well as gated virtual and live events.
Utilize AI Web Assistants on your website. As prospects and customers input an email address and topic to discuss with a virtual representative, your data platform stores an additional layer of history in client and product lifecycles.
Media Venue: Your trusted partner for integrated, effective campaigns
In a media landscape that is constantly changing, Media Venue is your trusted partner and guide.
Media Venue has 20+ years of experience helping clients in a variety of industries reap the benefits of effective local, regional, and national campaigns.
We can help increase visibility for your brand, direct traffic and leads to your website, and increase revenue opportunities for your products and services.
Contact us today to discuss your business needs and marketing goals. Call Digital Marketing Director Cassie Rogers at (502) 855-4784 or fill out this simple form at MediaVenue.com.
As Media Venue’s Digital Marketing Manager, Christine Long has over 15 years of experience planning and executing integrated campaigns combining online advertising, content marketing (social media, blogging), email marketing, audience segmentation, promotions, and live events. Researching and writing about best practices in digital marketing allows her to utilize these practices to serve her clients.