Data has never been so relevant for all companies as now. More than ever, it is crucial to have detailed information about customers and their needs to produce proper content and ads and to deliver better experiences.
But what is first-party data?
Very concisely, first-party data is all the data collected directly by the organization, namely, all the information sourced from customers through CRM and other touchpoints.
Nonetheless, for business – to unlock the full potential of this information, it must integrate the data sources and link them to marketing activities, and that is not a walk in the park, mainly because of the level of access that your business has to customer data.
As stated in a recent article published by Think With Google, that quotes a study from Boston Consulting Group (BCG), to use the full potential of first-party data there are three critical factors that allow businesses to create value while sustaining ongoing relationships with their customers:
- Create a fair and transparent value exchange;
- Ensure rules and data regulations;
- Develop data collection methods made by interaction with customers;
One might even point out that this goes in line with the Google Analytics 4 features, which will bring to light:
- Smarter marketing insights using machine learning
- Deeper integration with Google Ads
- Customer-centric measurements and a better understanding of customer-related data
- New data controls
The best of both worlds
At the end of the day, it is personal data that we are talking about, and if we want to have more quality and quantity data, we must be fair with our consumers. For that reason, to keep a value exchange cycle going, there must be a strong pillar that sustains the exchange: trust.
The data doesn’t just appear out of nowhere, companies have to offer incentives to their customers to share more information about them. These incentives could be:
- Offer relevant information;
- Provide assistance;
- Make premium content stand out;
- Create specials offers;
In this value exchange cycle, customers and audiences will get something of value, and companies will learn more about them. The result is obvious: thanks to the cycle, companies will be able to deliver better experiences and more effective marketing using their customer first-party data.
And remember, your company should always rely on trust, and the cycle will go smoothly.
First-party data: follow the rules, it’s essential!
The main priority for companies is to accomplish a healthy value exchange. Being responsible and respectful of the local regulations when dealing with data is the best way to do this. Brands should consider, assembling a responsible team, so everything runs as smooth as possible, always ensuring the respect of all internal and external regulations and principles.
Innovate and highlight yourself
Don’t limit yourself!
You have to think outside of the box if your goal is to improve your customer service, not only that, but you should consider gathering data from innovative and creative touchpoints because nowadays, a simple newsletter will not always make it.
In summary, the formula is simple, first-party data is crucial, if businesses used it responsibly, it will help them to understand their customer, resulting in a better experience for both interested parties.
If your company follows these three steps that we covered always thinking within the perspective of the client it is half of the way in terms of progress, the other half is to make it happen.
If you wish to learn more about this subject, be sure to check the full article.
Read more: How to unlock the power of first-party data