Leverage First Party Data Before It's too late
WHAT IS FIRST-PARTY DATA?
First-party data is a term that refers to data that you collect directly from your customers. This data is not collected through a third party, but via channels you own, such as your website, app, or emails.
First-party data includes, but is not limited to:
Data in your customer relationship management (CRM) system
Data from your website, app, and social media accounts
Data from product level purchases
Data from your subscription-based emails
Data from customer surveys
Data from customer feedback
Data from your loyalty program
So what does all of this mean for marketers at a hands-on, practical level? If cookies are a thing of the past, then what’s next? These new conditions fundamentally impact how ecommerce brands go to market. Brands will need to shift their focus from third-party to first-party data, which in many cases, means the whole ecommerce strategy needs to be recalibrated and redefined. The first step toward an efficient first-party data strategy is to get your data house in order. Many brands skip this step and head straight for tactics, which is a mistake. First, ensure you have access to solid/clean data, preferably through a Customer Data Platform. And there are still many options to enhance that customer data with additional demographics and behavioral data. A centralized data lake creates universal user IDs to enrich customer journeys through touchpoints, allowing for smarter retargeting and marketing. A data lake allows you to store your data in any format and eliminates the need for data silos, building a strong foundation for machine learning and AI-powered analytics. When you have your data in order, you can start focusing on optimizing every part of your funnel. The best idea is usually to optimize from the bottom of the funnel and then move upward. Get crystal clear on how you’re moving users through the funnel and getting existing users to stay. Once you know this, you can focus on getting new prospects at the top of your funnel, which brings us to the following question: how do you get people to the top of your funnel? Doing so requires new ways of increasing traffic and conversions on your site.
HOW TO GET STARTED
With all of the information, where do you start? Here are five tips to help you think about your first-party data strategy:
DEFINE YOUR BUSINESS OBJECTIVES
With a first-party data strategy, you’ll need to know what it is you want to do for your customers. Are you trying to understand behaviors better? Or are you looking to prompt real-time personalization? Or add an omnichannel experience? Any part of your strategy can be improved by leveraging first-party data.
DEFINE YOUR TARGET AUDIENCE
To define your target audiences, you’ll need the correct first-party data from channels like web, mobile, CRM, apps, and your product itself. For example, your visitors can be segmented by online behavior, affinity, and common demographics to develop a personalized marketing strategy.
HOW WILL YOU COLLECT DATA?
After you’ve sourced the correct first-party data, you’ll need to understand which specific data points you need to support your use case. For example, transactional data is meaningless until its put into context, like time since last purchase, lifetime value, product usage and so on.
WHERE DO YOU WANT TO USE THIS DATA?
Segmentation evolves with your access to data. How do you define a VIP or fan? Creating an omnichannel experience tailored to your audience starts with deciding which insights to use in which channels.
HOW WILL YOUR MEASURE SUCCESS?
What data points will you use to measure success? This is an ongoing process. Your insights will help you get the most out of customer experience and analysis tools. To effectively measure your success, you will need to use reporting tools and platforms, allocate resources, check in from time to time and request feedback.