The challenges of the future of customer relations: what if First Data Party was the solution?
In a world where data is becoming an asset for digital marketing, brands and companies are increasingly looking to exploit first-party data to optimize customer relations.
Indeed, first-party data is important for companies, as it enables them to better understand their customers and personalize their offers according to their needs and preferences. This data also enables companies to develop stronger relationships with their customers by offering personalized experiences and proactively responding to their needs.
The end of an era
For over 20 years, the cookie has been used for user tracking and data collection by the vast majority of the industry for digital advertising. After Google announced in 2018 the end of third-party cookies for 2023, later postponed to 2024, a wind of panic is blowing through the various players (techs, advertisers, retailers) faced with this change of method, techno and paradigm at the same time.
The disappearance of third-party cookies has an immediate impact on online advertising: advertisers have to review their targeting strategies and find new solutions to reach their audience. Without third-party cookies, ad targeting becomes more complex. And yet… The disappearance of third-party cookies is just the finishing touch to a process that began several years ago, notably with the rise of adblockers and the desire of Internet users to regain control of their own data. As a result, the industry has had to reinvent itself, and the concept of “first-party data” is making its entrance!
When first-party data rhymes with customer relations
The first-party data strategy is, without doubt, the future of customer relations. It enables brands to offer the best possible customer experience. This data is largely under-utilized, yet it’s a gold mine! Indeed, this data is considered the most valuable for a company, as it is collected directly from its own customers, and is therefore more reliable and relevant than data collected by third parties.
First-party data helps companies to better understand their customers by providing valuable information on their purchasing preferences and online behaviors. This data can be used to tailor marketing actions and offers to the specific needs of each customer. This ultra-precise data makes it possible to personalize offers, messages and experiences. This data also enables companies to develop stronger relationships with their customers, by offering them personalized experiences and proactively responding to their needs.
To maintain a competitive edge and offer a consistent experience to all these customers, across all available digital channels, it is essential to unleash the power of all first-party data.
With the economic downturn, acquiring new customers becomes more difficult. Retaining existing customers and building brand loyalty is just as difficult. All it takes is one bad experience for a customer to turn to a competitor. And that experience can be as simple as repeatedly sending out advertisements for a product they’ve already bought, or for which they have no appetite.
So, the aim of first-party data is always to understand the customer well enough to create the personalized experiences they expect. Personalization goes far beyond putting a consumer’s first name on a web page or in an e-mail. First-party data allows us to know which products have already been purchased, as well as the customer’s purchasing history and frequency, so that we can tailor our offers accordingly.
What’s more, consumers willingly trade their personal information for more relevant and personalized experiences, especially if they trust you and want to benefit from the value you offer in exchange for this data. It then becomes essential to act on this data to deliver the experiences customers want and expect. So it’s vital to be transparent and open about the data you collect and how it’s used.
A solid strategy for using and enriching first-party data opens up new opportunities for better personalization and customization at every stage of the customer journey. In the long term, better use of first-party data will help to understand in depth who customers are and what they expect from a brand, a retailer… In turn, this will help refine every campaign and communication, meaning that investments from marketing, trade, e-commerce or digital will be adjusted to achieve better results. It’s a powerful combination!