As marketers enter a new, more strategic phase of the intelligence collection process, the value of third-party data has hit a tipping point. The industry is taking a step back to consider how to make better and more integrated use of the data they are receiving.
Marketers are increasingly questioning the value of third-party data for more than just privacy controls, prompted by the move to a “cookieless” environment. They are also questioning the traditional practices by which the data is collected and analyzed. Now that data sources are abundant, brand managers and their agencies can finally compare and contrast.
Also Read: Four Video Marketing Mistakes Brands Should Avoid
Going around the feedback loop
Data from third parties has always promised more than it has delivered. Individual data providers’ results can and do vary due to different collection processes and technology, and no single data set is omniscient. Unfortunately, marketers’ lives are made more difficult by this inherent lack of consistency as they seek more clarity in order to target new and more precise audiences. Consumer mistrust has risen at the same time that data gathering has become more widespread and regulators have imposed greater privacy constraints on the private sector.
However, the implications extend far beyond privacy. Marketers were promised a plethora of information about consumer behavior and interests throughout the global digital landscape thanks to cookies. The availability of data made media planning a breeze, and the steady flow of campaign metrics validated the strategies that those handy analytics had generated. When marketing professionals try to integrate the data or its clones into their businesses, the feedback loop breaks down.
The unique customer
It’s no surprise that brands continue to ponder two crucial questions: who are their customers and what motivates them.
To answer the first question, it’s logical to begin with the digital equivalent of fingerprints: email addresses. Even up-to-date lists, cleaned of fraud and validated for consent, should be supplemented by third-party data in order to better grasp who that individual is beyond how they interact with a brand. Furthermore, dealing with the dangers of privacy infringement makes email from other parties especially difficult.
While IP addresses are a one-to-few unique identification, they provide another way to learn more about the consumer and their journey. Marketers who can observe how customers engage across various devices know a lot more about consumption patterns and how they develop. Mobile IDs are yet another unique identifier that can add value to the mix.
The second fundamental question that marketers have is what makes their customers tick. Links between digital channels and consumer platforms do not fully answer this question. In the end, consumer identities are probably more deeply anchored in offline lives than relationships with the companies they buy or the media they watch. Income levels and employment positions are not often taken into account when creating audience personas.
Also Read: Three Strategies to Refine Customer Experience
Data from first- and third parties are combined and linked
Some businesses immediately obtain important information on their customers in the normal course of business. Unfortunately, business data is frequently stored in distinct department silos across the organization. Finance may not share with Marketing, and Logistics and Shipping may not communicate with Finance, while CRM systems do not take information from Customer Service phone lines, POS systems, or website chats. The work necessary to integrate and analyze so much data into a coherent and effective first-party data set is a significant strategic issue for many brands.
Many businesses and agencies will overcome these obstacles in the future. They will be effective in developing or partnering with coherent and actionable platforms for data sharing and optimization. Importantly, the most successful data platforms will allow marketers to connect and combine first and third-party data sets even as they integrate and aggregate data from silos across their operations.
For more such updates follow us on Google News TalkCMO News.
