FIRST-PARTY DATA

TGIF Everyone!

I LOVE LOVE LOVE this article from BCG (Boston Consulting Group) titled Responsible Marketing with First-Party Data. I wanted to share it with you >> please take a read via the link below.

Some of you may know -- helping brands build more first-party data is what I do today as Director, Client Partnerships with SKUx. So this topic is PARTICULARLY near and dear to my heart.

First, if you are not familiar with the term (first-party data), here is how BCG (Boston Consulting Group) defines it in this article:

"We define first-party data as data that companies can collect directly from consumers. This includes information about the intent to purchase that customers provide in order to improve the shopping experience. First-party data sources include browsing behavior on a company’s website or mobile app, transaction history from a CRM database, e-commerce sales, loyalty program activity, and information about consumers’ future preferences gathered from surveys, games, and contests."

First-party data is important to marketers for many reasons -

• Deliver personalized experiences to consumer. More relevant messaging.
• Assists in customer retention efforts
• Modeling look-alikes helps companies to more efficiently acquire new customers
• Impacts improved cross-selling / upselling efforts
• Optimizing marketing efforts (Media response attribution to refine marketing-spend)
• Segmentation (Ex. Group based on purchase frequency)
• Better understand customers by creating a more robust consumer profile / 360 view of the customer by collecting and integrating first-party data from multiple channels.

In fact, the article notes that "BCG’s global digital marketing maturity survey has shown that companies that link all of their first-party data sources can generate double the incremental revenue from a single ad placement, communication, or outreach, and 1.5 times the improvement in cost efficiency over companies with limited data integration"

I've spoken with many companies across many industries. Some are more advanced than others :( ----> I believe collecting more permissioned consumer-data is going to become increasingly ESSENTIAL to marketers -- we need to get better at it -across ALL industries, given the changes going on in the privacy landscape and the rise of challenges ahead for our future cookie-less world.

That's my Two Cents

Tom Smith

Tom Smith is Director, Client Partnerships with SKUx, an innovative fintech company redefining the way consumer offers are delivered, redeemed, settled and reported. In his role, Tom helps leading brands collect more first-party customer data so that they can better engage with them & ultimately improve the profitability of their marketing efforts. To learn more about SKUx, visit: www.skux.io

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