Leverage your first-party data to gain a competitive edge.
Higher performing brands have learned to leverage value from first-party data. A strategic approach can improve customer experience and boost business results.
In an increasingly data-driven landscape, first-party data is a powerful competitive differentiator. First party data is personalized information that a company collects directly from their customers, with consent. Leveraging this audience data is critical to enable highly personalized and targeted marketing efforts, increasing ROI.
Businesses using first-party data for key marketing functions achieve up to a 2.9X revenue uplift and a 1.5X increase in cost savings.
To unlock the full potential of first-party data, brands should employ a two-step process combining ongoing collection and activation.
- Ongoing collection - Gathering, storing, normalizing and combining first-party data from multiple sources to have actionable data.
- Ongoing activation - Deriving insights from your data and analysis. Using those insights to engage audiences with personalized marketing along with ongoing measurement of effectiveness.
While leveraging first-party data provides a wealth of benefits, there are also a number of challenges and considerations to keep in mind.
Customer trust can be earned or broken with every experience. Transparency with respect to data collection and data is becoming increasingly important.
81 percent of consumers say that having choices about how companies use their data is important.
Adobe Trust Report
Companies must ensure that they are following consumer privacy regulations and that the customer data they collect is protected from unauthorized access or breaches.
A 2023 survey by PwC found that data privacy is increasingly important to consumers with 32% of respondents being extremely or very concerned when engaging with companies regarding data privacy.
Companies often have multiple sources of data stored in systems which are not digitally integrated with one another. Maintaining data accuracy is critical to maximize its efficacy.
81% of executives indicated that having an audience management platform to centralize and activate data across all online and offline channels is either the highest or a high priority.
Merkle customer engaement survey
Personalization is a key benefit of leveraging first-party data. By utilizing information directly collected from your customers, you can tailor marketing messages to better connect with your audiences. A more personalized experience combined with enhanced targeting and segmentation leads to higher engagement rates and importantly, increased sales.
Across industries, companies that excel at personalization generate 40 percent more revenue than average players.
But, you need to be sure that you are ‘getting it right’ when it comes to personalization. Take the time to analyze and segment properly to ensure you garner trust and credibility with your customers.
72 percent of consumers say that poor personalization decreases their trust in brands, with more than 1/3 (36 percent) saying it significantly harms their trust.
By using first-party data you can significantly reduce marketing spend and improve overall return on investment. Leveraging your data to build lookalike audiences significantly decreases customer acquisition costs while increasing top of funnel prospects.
Use your own data to make your marketing efforts far more efficient and to lower costs and improve business results. Segmentation and personalization can significantly increase engagement and increase sales.
Leveraging first-party data can provide numerous benefits, including increased accuracy and relevancy, cost savings and improved customer insights. However, companies must also be aware of the challenges that come with using first-party data, paying particular attention to data quality, security, and targeted messaging.
Lovely People can help you create an effective data strategy enabling efficient advertising, better engagement and improved business results. Let's talk.
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