Why it’s time to prioritize first-party data and how businesses can prepare
An Age of Data Appreciation
Conversations around data privacy have been growing louder in recent years, with consumers beginning to question how and why their data is being used. In fact, according to Pew Research Center, almost 80% of Americans worry about how companies are using their data.
This was brought to the forefront in Apple’s recent Privacy on iPhone ad where the cookie trail is very literally embodied by people following the individual around and highlighting how personal data can be gathered throughout the day. This just emphasizes the priority data privacy has from the consumer’s perspective when the world’s most iconic smartphone uses it as the primary positioning for their product.
Consumer privacy regulations are shifting. By 2022, brands and advertisers will have lost access to the cookies they’ve traditionally relied upon to shape their marketing campaigns. What’s more, many organizations are severely underestimating how this might impact them.
Yet, without relevant third-party data, businesses will struggle to understand and engage their customers with targeted products, services, and offers. That is unless they act quickly.
The loss of third-party data will accelerate a change that has needed to happen in marketing for quite some time. Businesses will no longer hold the power of customer data in their hands and will need to invest more heavily in making consumers advocates of their brand.
Customer retention and loyalty programs will need to become a much higher priority for businesses but identifying opportunities for upselling and cross-selling amongst existing customer bases will also hold value.
Developing Meaningful Experiences
Brands will still be able to anticipate customer behaviors and offer meaningful experiences without third-party data, but they’ll need to get comfortable using probabilistic and predictive insights instead.
Of course, we can always expect to see a margin of error with probabilistic data, which is why the intelligent solution for many businesses is to turn to a sophisticated customer data platform (CDP).
With large-scale data sets accessible from one centralized interface, sophisticated CDPs allow businesses to develop a much deeper and more holistic view of who their customers are. As a result, CDPs give businesses the chance to harness data-led, rather than campaign-led, marketing opportunities.
Preparing for Cookies to Crumble
As we wave goodbye to cookies, it’s clear that being complacent will leave businesses vulnerable. Organizations need to act quickly to implement alternative solutions if they want to continue providing a seamless experience to their customers.
After all, collating mature data sets isn’t an overnight process. For more detailed customer profiles and relevant results, businesses should look to build a scalable CDP that can simplify their transition from third- to first-party data prioritization.
NGDATA’s CDP, the Intelligent Engagement Platform, offers the insight businesses need to keep creating great experiences without breaking customer trust. Using a variety of data sources, we build a greater number of high-value predictions that put the power back in the business’ hands.
Real-time metric analysis offers immediate insight into customer behaviors, needs, and preferences, allowing businesses to predict the best-next-action for every individual when it makes the most impact.
Building a people-first data strategy is what businesses need to future-proof their marketing and ensure customers remain engaged – and now is the time to act.
If you’re interested in finding out how NGDATA’s Intelligent Engagement Platform could help you leverage first-party data, get in touch for more information.