We’ve also learned that data leads the way to identify and readdress these users and that 1st-party-data is probably the most valuable data source for your audience strategy.
But why is it 1st-party-data that is so valuable for you to shape your customer experience?
The right answer to that is data reliability. Whereas 3rd-party-audiences are often built based on assumptions and projections, 1st-party-data is based on facts. On true facts, that are built by real customer-interaction – performed by your own customers. Speaking in examples: knowing exactly what kind of car colour a user prefers for his new car, gives you the chance to address this user with exactly his preferred car colour in all digital touchpoints. By doing so you highly personalize his user experience and strengthen the relevance of the content you’re exposing him to. The preferences on car colours are such specific interests, that no 3rd-party-audience could express as accurately and reliable as 1st-party-data does. So by collecting, combining and using 1st-party-data you enter a complete new area of user- and audience-based targeting.
Translating this into performance KPIs: reliable data offers you the possibility to increase your Return on Investment. I’m sure you agree with me, this is the number one objective of all our businesses.
But as everything in life, also 1st-party-data comes with some restrictions. As with all kinds of data, also when processing 1st-party-data, GDPR regulations apply and urgently have to be considered in your audience activation strategies.
Another restriction that comes with 1st-party-data is the topic of reach: Whereas 3rd- and 2nd-party-data is available in bulks, 1st-party-data is a) limited to your own clients and CRM data and b) limited in availability. So to make use of your 1st-party-audience not only for performance objectives in the lower part of the sales funnel, but also to reach out to potential new clients in the upper part of the sales funnel, different activation strategies need to be applied. Building and addressing Look-Alikes of your 1st-party-audience is just one possibility to strengthen reach of your 1st-party-audience. Look-Alike-Building means to identify users that are similar to the ones that have already shown interest in your product – your 1st-party-data – and addressing them with relevant content. So 1st-party-data does not only help you to better understand your existing clients but also to unlock new ones. And that’s something we’re probably all in the hunt for, right?
You see, 1st-party-data offers a lot of possibilites to personalize and improve your customer experience. Even though the topic may sound complex, the results you’ll see will prove their reason for being fast. So what are you waiting for? Make use of your 1st-party-data and boost your customer journey to the next level.