It seems like every day we’re repeating the same tired phrase – times are changing. But this time they actually are.
Data readiness is not a new topic but it’s one that’s worth repeating because there can be big consequences for companies that are caught underprepared. We need to make sure we’re ready when the shift finally happens.
Increased emphasis on privacy from consumers, regulatory changes reducing the availability of third-party data, and rising costs of data access, combined with consumers now being empowered to opt out of third-party are all adding weight to the importance of data readiness. As a result of these changes, it’s getting more difficult to source third-party data. To remain competitive in its wake, brands need to begin the move to first-party data and ensure they have the means in place to make this a smooth transition.
Even if you have the right infrastructure to collect vast amounts of data yourself, getting the most out of it is another matter – and here’s how.
First-party data is key
We all know the importance of moving from third to first-party data: it’s collected directly from consumers, rather than from software vendors and data aggregators, meaning you actually own it. It includes all the useful information you might need to build a consumer profile such as personal, behavioral, transactional and preference data; and because it is collected directly, it can be far more reliable, granular, and aligned with regulations and frameworks like General Data Protection Regulation (GDPR) and your company’s policy.
In a world populated by privacy-first consumers who also desire a personalized experience, first-party data can be worth its weight in gold. But only if you do the right groundwork.
Laying the foundations
Making the transition is easy if you follow some simple steps. It begins with understanding the data you already have. Stopping to take stock will give you a greater understanding of the direction you need to head in and where you need to source your data from in the future.
Conduct a comprehensive audit of your existing data sets. Appraise each of your marketing platforms, including how the platform is configured, whether it is in line with best practice, and how data is being extracted currently. With this knowledge, you can engage with key stakeholders so that they better understand business priorities going forward.
Next, you should develop a roadmap for first-party data capture and utilization. This will depend on the maturity of your business but you can start by working out your company’s objectives and priorities, such as increasing data collection on a particular website or connecting your collection platforms together to gain a more comprehensive view. With this roadmap you can identify your long-term goals and develop strategies with them in mind.
However, don’t run before you can walk. Implement proof of concept projects to avoid becoming overwhelmed and better identify which data capture strategies are most likely to succeed. Remember that being agile will help you iterate and improve your strategies moving forward.
Develop your data ecosystem
From this baseline, we can begin to build a data ecosystem. Start by integrating data from multiple sources such as customer relationship management (CRM) systems, web and mobile app analytics, and e-commerce platforms using common keys like phone numbers and email addresses.
You can also take advantage of initiatives like Google’s Enhanced Conversions to measure data that might have otherwise gone unmeasured. After collecting information that customers give you directly, such as an email address when they complete a conversion of your website, Enhanced Conversion securely hashes this data before sending it to Google where it is matched against the user’s google account, providing you with more information about each customer who completes a conversion. This helps create a unified view of customer interactions and behaviors, giving you a richer understanding of your audience.
Since customers will be using completely different channels to interact with businesses and the departments within them, scattered data can be difficult to understand. By creating a single customer view (SCV) that aggregates user information from disparate sources you can gain a far better understanding of individual customer preferences and behaviors across all touchpoints. This will help you personalize and enhance your marketing to deliver more relevant and timely experiences, ensuring you can foster stronger relationships with your customers.
To further enhance your data management, utilize cloud storage and processing platforms like Google Cloud. These platforms offer scalability, security, and advanced analytics capabilities, letting you efficiently handle large volumes of data and perform sophisticated analysis.
Great data creates endless opportunities
You can collect all the data you want, but without the expertise to use it, it’s practically worthless. The good news is that a library of cataloged and accessible first-party data provides a launch pad for advanced analytics, machine learning tools, and AI-backed decision-making.
For example, you might discover that 100 people are submitting a form, which you have originally identified as a conversion point for a lead generation campaign. However, through analysis you might see that very few of those submissions result in sales, allowing you to pivot your strategy towards those users with a higher likelihood of conversion.
Data won’t necessarily provide the answers, but by organizing it properly, experts, AI-backed tools and marketing platforms can spend less time sifting through it and more time optimizing campaigns, allowing for better analysis and in turn, better results.
As Head of Analytics at Incubeta UK, Matthew Nixon is an expert in web and app analytics, optimization, tag management, and business intelligence. He also has extensive experience in project and analytics product management. Matt's product-specific expertise includes Google Analytics, Adobe Analytics, Google Tag Manager, Looker Studio, and Tableau.
