The end of third-party cookies has introduced a different landscape for marketers where first-part data is king. What seemed overwhelming at first is now the norm, but that doesn’t mean that organizations have mastered using first-party data yet. There’s still a lot to learn for companies that want to become leaders in their field.
Companies can take advantage of many noteworthy strategies to thrive in the current environment and take advantage of first-party data.Here’s some guidance to help companies update their data strategies for a cookieless future.
Recognize the Importance of Data Privacy and Governance
First-party data comes from many sources, including sales interactions, website forms, social media and surveys. It includes data such as demographics, purchase history, customer behavior and email engagement. This first-party data is valuable, but organizations must make sure to properly secure it and follow strict privacy protocols before marketing teams can use it.
Privacy regulations govern the collection, storage, usage and disposal of customer data, and customers value these laws because they want to trust that companies are not using their data in an inappropriate way.When first-party data is collected with consent, it allows companies to send customers relevant, personalized communications — without customers having to wonder if their data is going somewhere they don’t approve.
Organizations can get great value from first-party data through data clean rooms. Data clean rooms allow organizations to interact with partners while also keeping first-party user data secure. They achieve this by uploading first-party data, which is then anonymized by removing any personally identifiable information. This data (along with other aggregate data) helps organizations make insights. Data clean rooms let companies share data in a privacy-friendly way — which is useful in a time when customers are worried about data privacy.
Optimize Your First-Party Data Strategy
There are several key steps needed to optimize a first-party data strategy:
- Organizations first need to clearly define their strategy, goals and objectives so they can map out the tactics they'll use to achieve these goals.
- Then, they should identify key customer data sources, even those hidden in siloed applications or outdated systems. It’s important to identify if the same data has been stored across the company in different formats and different systems.
- Now that they’ve identified what data is saved in various formats across different systems, organizations should use data standardization to ensure the data is uniform and consistent across all systems.
- Next, they should implement a data management solution. Customer data platforms (CDPs), for example, help companies unify company-wide customer data in an accessible, central system.
- The final steps are to utilize data enrichment and include zero-party data in the strategy. Data enrichment — explained in further detail below —is a process that improves the data quality of digital customer profiles. And much like first-party data, zero-party data is collected with customer consent and gives valuable insights.
Utilize Data Enrichment With a CDP
Companies use data enrichment to create a detailed customer profile by gathering additional data and combining it with first-party data. There are many positive outcomes organizations can expect from data enrichment, including building more sophisticated buyer personas, segmenting audiences according to new parameters and gaining the ability to identify new customers for targeted personalization. Companies can also improve the accuracy of personalization and ultimately make the customer experience better.
CDPs allow teams to collect data from multiple sources and continuously update customer profiles in a central location. Once data is cleansed and stored in a CDP, marketers can analyze it to gain insights and inform campaign strategy. The better the data quality, the more accurate these insights and strategy decisions will be.
How CDPs Bolster Your Data Strategy
The best way to ensure your customer data is consistent, accurate and accessible is through a CDP. Treasure Data’s Customer Data Cloud is the perfect example of a customer data management solution that maximizes a company’s ability to use first-party data effectively. Learn more about how to optimize your first-party data strategy in the link below!
Download “How to Optimize Your First-party Data Strategy” here.