Responsibly Using First-Party Data to Maximize Marketing ROI
For years, marketers have had a laser eye for first-party data. They know that first-party data extracts the highest ROI of any data type. Exceptional customer experience demands advanced data. Therefore, brands have to understand audience patterns to further fuel their role in the customer’s journey.
In each case, first-party data from customer takes center stage. This opportunity is extraordinary because companies can collect every little information about their users. Hence, the data can be more concise and timely as compared to external sources and can help elevate the brand value.
“Responsible Marketing With First-Party Data," a report by the Boston Consulting Group in collaboration with Google unearths the specifics of first-party data and its gravity in the current marketplace.
First-party data - every marketer’s essential
First-party data stockpiling involves the collection of data - purchase behavior and customer interaction - both online and offline. This helps source users' browsing patterns on an organization’s website or mobile app. It also aggregates users’ future preferences on the basis of games, surveys, and contests.
Many consumers have been concerned about the security of their personal data. Thus, catering to user concerns, digitally mature companies exercise two practices while requesting consumers for access to use first-party data.
A 2-step pathway to first-party data usage
In essence, first-party data channels a two-way profit route. First, consumers obtain sounder experience. Second, the company benefits from greater marketing efficacy through the insights they procure from the audience.
This two-step program involves the collection process - accumulating, storing, refining, and compiling high-grade data from various first-party origins. This is followed by the activation process, that derives crucial insights by data analysis, audience engagement, and performance.
Most companies gather data from both online and offline platforms. Typically, multi-moment brands collect information from around 78% more sources than elementary brands. At large, the most profitable sources for collecting data are online sources.
Opening the doors to the capabilities of first-party data
In the report, marketers identified six technological and organization facets that expand access to using first-party data. It was observed that around 70% of brands throughout the Asia Pacific viewed technological factors as the chief enablers.
Data collection involves gathering high-quality information and managing it to attain insights. This is one of the various dimensions of technological enabling. Up to 62% of companies use integrated data warehouses that merge both - marketing and company data coherently.
Strategic partnership with creative agencies and media houses is one of the phases of organizational enabling. This calls for brands to construct teams comprising of pre-existing employees and media agency members to devise campaigns. These, in turn, facilitate lucrative collaboration and advertise the brand’s capabilities.
The road to unraveling first-party data
Technological and organizational enablers are a business chip for brands to reap all the benefits of first-party data.
Brands need to “set the framework” to ensure that the data complies with regulations, and is usable for practicing analysis relative to their needs.
Furthermore, brands must “establish connections” to extend the involvement of first-party data in their marketing operations.
Lastly, multi-moment brands must "leave no stones unturned" and increment ahead by automating the data through progressive tools.
Professional marketers and their agencies carry a myriad of tasks to achieve under a tight schedule. Therefore, as long as they can harvest first-party data accurately, half the work is already done!
Download the complimentary full report: Responsible Marketing With First-Party Data, here.