You can build a "Brand Name" when you can build trust among your customers. This is possible with first-party data collected from the customers and ensuring data privacy for the same. First-party data is the data collected with due permission from your customers. For example, when they fill out forms during sign-up or newsletter subscriptions, the details they provide can be used for further marketing purposes with their consent.
In this digital world, online business has become a lucrative aspect of growing your business. However, this also comes with the responsibility of handling first-party data and implementing measures to protect user data.
How is First-Party Data Advantageous for Marketers?
- Builds Trust: Only after the consumer gives consent then you collect the first-party data. This builds trust between consumers and brands.
- Framing Effective Strategy: With all the first-party data and customer info, advertisers can read and understand the customers better and tailor personalized ad campaigns.
- Encourage Audience Engagement: First-party data helps you to understand how, when, and from where customers are engaging with your ads. This can guide you to improve the targeting strategies.
- Brand Awareness: When first-party data is combined with AI/ machine learning can help your brand reach out to more potential customers and plan your media impact better.
How to Collect First-Party Data?
Nothing comes free, right? So are the data; you need to add value to your customers to get their valuable data in return.
- Provide early access to new launches only for customers who sign up.
- By collecting email addresses, you can send personalized product recommendations.
- You may send a notification when the item added to the cart is low in stock or when it is back in stock.
- Offer rewards or exclusive deals through loyalty programs for special customers.
How to Use First-Party Data?
For a successful ad campaign, you need to use the first-party data in a structured way.
- Proper segmentation of customers to serve more accurately.
- Targeting and re-targeting of customers through ads, social media, and email marketing.
- Personalization of ad campaigns to send relevant ads and content that encourages customers.
- By performing proper first-party data analysis, you can reach out to new customers.
- Improve your brand by constantly engaging with your customers. This helps you to collect valuable feedback, both positive and negative, which can be used to do better.
How to Collect First-Party Data?
There are two common ways to collect first-party data.
Permission Marketing: You can collect data by asking customers to share their personal info, in return for some discounts, a free trial, a newsletter, early access, etc. In short, you need to earn their personal data by gaining trust by returning them some kind of value rewards.
Software Integrations: You can also collect this data by using some reliable software tools that can track and identify potential users and collect their required information without compromising on data-privacy. This procedure boosts conversion rates, enhances targeting, and guarantees adherence to data protection laws (GDPR, CCPA). Examples of important integrations are CRMs (like Salesforce and HubSpot), CDPs (like Segment), and marketing automation systems.
Conclusion
The bottom line is, it is all about building trust. Ninety percent of customers are eager to share their information when offered value rewards. But, it has also been seen that more than sixty percent of customers are hard to bring back when trust is broken by the mishandling of data. It is easier to get the first-party data either from customers themselves or through software integration. What is important is how you use it and strategize it to make the campaign a successful one. If you are looking for better guidance, 3Mads is here to help you achieve maximum profit from your ad campaigns.