What Does First-party Data Have Over Third-party?

First-party Data Have Over Third-party

With third-party cookies going away, first-party data, the data you collect through your loyalty program, is your golden ticket to successful acquisition and retention. 

Here are some ways first-party data helps you deliver the experience your customers’ desire: 

Increased Relevance – First-party data takes the guesswork out of determining who your audience is since it’s collected directly from their behaviors and preferences. This clear understanding empowers marketers to create and deliver relevant and engaging experiences to their customers. Brands are now beginning to go beyond group segmentation, to delivering individualized experiences. Customer loyalty is a proven mechanism that can be used to target individuals based on personal information provided and past engagement history.

Delivers Higher Value – Collecting first-party data, like asking customers to take a quiz or fill out a survey, helps you deliver a more relevant, personalized and seamless experience every time the customer interacts with your brand. It’s all about creating a mutual value exchange. In exchange for customers sharing their information, brands that have implemented a strategic loyalty program can reward their customers in the form of points or perks for providing this valuable information, then use that information to individualize their experience.

Immediate Availability – You have access to first-party data right now. It’s stored in your CRM. Brands that have implemented a loyalty program can take dual advantage of this as they’re able to present targeted offers and campaigns to individuals. And if you’re looking to start collecting data with consent, you can implement a preference management platform. Marketers have now evolved to leverage GDPR and other policies by pairing consents with fun and interesting gamification strategies like polls and sweepstakes where customers are more likely to provide their personal information along with their consent to be marketed to in the future. AI-based companies are now creating programs to be able to assess real-time data and customer intent when presenting experiences. 

Better Customer Experience – 80% of frequent shoppers say they’ll only shop with brands that personalize their experiences. While third-party data may get you in front of more audiences, those audiences aren’t necessarily relevant. 73% of U.S. consumers like to buy from brands that use information about them to deliver more efficient and relevant shopping experiences. First-party data allows you to gauge customer intent and their position in the buying journey. By seeing what your audiences are interested in, you can personalize their experiences by suggesting products and content your customers want to see. Content intelligence is just as important as customer intelligence, as your customer touchpoints should be able to use the powerful customer data you collect to deliver personalized suggestions or recommendations. Using first-party data, brands can more accurately predict future customer behavior, improve targeting, enhance marketing campaigns, and individualize content. Collecting first-party data using loyalty programs is becoming increasingly popular as it provides a mutual benefit for both the brand, for acquiring personal customer information, and the customer, that earns rewards and perks for doing sharing this information.

More Accurate Data – With first-party data, brands eliminate the middleman. This allows them to learn more about their audiences’ interests, preferences, characteristics, and behaviors directly from customers. Data that comes straight from the source is more likely to be accurate and reliable. Customers are more willing to share personal information if the brand rewards them for this behavior. In return, brands that have implemented loyalty programs are able to unlock hidden revenue potential. It’s also easier to manage privacy-related issues because you know the exact origin of the data. This also increases reliability of the data, ensuring more effective marketing efforts, higher email deliverability, and increased opportunities to market to customers across all available channels—like email, social media, mobile app or retail stores. According to a study by Quantcast and Iligo, first-party data was found to be most reliable by 65 percent of the respondents. 

Enables You to Address Pain Points – Most brands use data collected from various sources to deliver surprise and delight features but often tend to steer away from focusing on meeting customer needs and solving pain points. Advanced loyalty programs provide gamification features like leaderboards, earning badges, etc. to bolster customer engagement with the brand. This should be where you start, and you can use first-party data. Ultimately, that’s the whole point, collecting data that enables you to serve them in unique and meaningful ways.  

Looking ahead, investing and prioritizing in the effective management of first-party data will ultimately lead to a better understanding of customers, an increased level of personalized communications, and more meaningful and engaging customer experiences across digital channels.

Ready to leverage first-party data as a competitive advantage?  We can help.

 
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