In our last article, we focused on how consumer data has become an integral part of the evolving marketing process. We also pondered the emergence of various data types and their roles in effective strategy deployment.
We have recognized that the consumer journey from awareness to purchase has become a complex nonlinear process due to consumers’ omnichannel existences and interactions in this new normal era. Capturing these consumer micro-moments and events is key to driving success for a brand. The data sets available from various sources need to be understood, evaluated, and compared through the lens of driving marketing success.
We found that first-party data provides the most valuable and actionable consumer information and insights to drive profitable brand growth in the short and long term. The matter that now needs special attention is what are the best ways of continuously collecting First Party data for a brand.
The understanding of collecting First Party consumer data from the right place and the right way is the cornerstone for the effective articulation of a successful strategy for consumer personalization at scale.
The three critical pillars that help optimize the First Party data collection process are:
There are various ways how brands can collect first-party data. These methods are used appropriately in the relevant context of collecting and managing quality data consumers consented to give.
Further, this method is inexpensive and easy to implement. It is helpful to analyze and interpret but often constrained by the level of participation in the absence of compelling benefits. The degree of accuracy is questionable due to its ‘Claimed-based’ responses. But this is good to provide some dipstick understanding and help gauge consumer trends.
Consumers, however, are often willing to share their opinions, preferences, and interests and reveal their identities on these channels. This is an excellent tool to gauge some of the inner voices of the consumers when they are in a more receptive mindset. But it provides little or no demographic information and limited affinity data about the consumers.
One prime limitation of this method is that the brand owners have to depend solely on the Web-visitors’ discretion to allow using their data once they’re logged in without having any apparent benefits for doing so. As the consumer responses are often not triggered by any brand/category stimuli, they may not be precise to help the brand drive its purpose.
This method needs systematic intervention(Time & effort) from a dedicated and skilled team to explore and interpret the signals appropriately and to put them into action in real-time.
A Customer Data Platform (a more advanced CRM) with capabilities beyond storing data but enables integration to activate the data too, let’s say for targeted advertising, and also can collect data from a wide range of tools like online customer support software or analytic software, etc., is the most useful and advanced option to address the data acquisition needs of today.
The above methods of collecting First Party Consumer data with their opportunities, limitations, and challenges, make it very apparent that the most accurate, holistic, and sophisticated way of collecting 1st Party data can come from the real-time mapping of all the consumer events on their path to purchase integrating the online footprints of the consumers with their offline transaction events. This data can be collected and customized by triggering real-life consumer behaviors using the right brand stimuli or value exchanges.
While the above provides the most insightful and actionable data, it is extremely difficult for most brand owners to institute such a robust system within the organization without the proper infrastructure.
Here comes the role of Grivy, where our unique advanced data exchange platform enables the brand owners to collect behavioral First Party data (including transaction data) by connecting all the data silos and thus achieve the scale with efficiency and speed.