Three Ways for CMOs to Leverage First-Party Data

    Three Ways for CMOs to Leverage First-Party Data-01

    With brands having no choice but to abandon the usage of third-party data, CMOs need to revamp their approaches towards using data. They should devise strategies that will enable them to extract the most information from their first-party data.

    Today’s customer base has become more informed than ever before. With pandemic driving them to rely on digital technologies, B2B customers have become much more conscious, especially with regards to their data. As they become aware that social media firms have been utilizing their data to create customized feeds and much more, they are less likely to post their data. Moreover, the strict regulations placed by GDPR around user privacy have also taken away the third-party data leaving marketing with no choice but to capitalize on first-party ones for their future initiatives. But, there is still hope.

    With Google delaying the removal of third-party cookies from its Chrome browser till 2023, B2B marketers can take a sigh of relief. Meaning, CMOs have two more years to prepare their first-party data strategies. Here are a few things that CMOs can do to make sure they achieve their goal of relevant personalization come 2023, regardless of Google’s plans.

    Also Read: Three Major Roadblocks to Scaling Personalization

    • Concentrate on utilizing first-party customer data

    CMOs should start planning with an in-depth assessment of their first-party data needs. They should take time to find data gaps that will be exposed from a customer, behavior, and channel perspective that is difficult to be filled by first-party data sources. Not only that, CMOs should question whether their first-party data sources can be replaced with other data sources such as second-party data, zero-party data, or even purchased third-party data.

    To advance the collection as well as the management of customer-level first-party data, they should begin to evaluate technologies and techniques. CMOs should also maintain their ad delivery and analytics tools that will provide them more control over where their advertising dollars are spent. This will eventually lead to improved digital trust.

    Also Read: Qualities to look for in a successful marketer

    • Exercise analytics to first-party data

    CMOs should begin to exercise applying analytics to their data to gather necessary insights from their first-party data. Meaning, by 2023, they will have enough intelligence that they can use. Additionally, CMOs should start working to understand the required customer metrics that include customer lifetime value (CLV), Net Promoter Score (NPS), and propensity-dependent first-party data sources. To successfully apply analytics with purpose, CMOs will need to understand various types of analytics in more detail. They should know what type of data they require to support those analytics types, and only then should they prepare for steps of activation and automation.

    • Abandon present bad practices

    While the ban or discontinuation of third-party data seems a step backward from a brand’s perspective, it has just come at the right time for their long-term behavioral advertising growth. Since third-party cookies allow brands to follow their user across the internet, it has led brands to follow poor marketing practices. Hence, it is crucial that CMOs rethink their approach towards marketing practices. They should begin to consider what the future of behavioral targeting looks like in their organization. They should start their planning regarding data movement, data model creation, and other data processes by keeping first-party data requirements in mind.

    The best way to handle the discontinuation of third-party cookies is for brands to increase their reliance on first-party data. Brands should perform first-party data assessment, apply analytics to first-party data for extracting useful insights while activating and automating those insights for business growth.

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