By Anton Ruin
If compared to volumes of the so to say external data, first-party data is generally considered more valuable, even though it is often limited to CRM and retargeting. However, some of the latest research proves that the amount of first-party data that a company can collect is far larger, than one might expect.
In particular, it also comprises purchase data, product and inventory data, which can be collected via inventory or supply-chain management systems, for example, and customer data, usually gathered via CRM, direct mail & e-mail lists and/or a company’s call-center system. All of the mentioned types of data can and should be collected and analyzed by marketers in order to get the more precise vision of who the target customers are and how they should be reached.
For what it takes, although the necessity to collect first-party data and further analyze it is indispensable, most experts agree that it is virtually impossible to manage and research such massive volumes of information all at the same time. Thus, one of the common recommendations for businesses, wishing to succeed in using the most precise first-party data, is to pick up one primary data set, determine ways to collect data, test and analyze acquired results.
How to determine a primary first-party data set for a company?
In most cases it turns out much easier to distinguish the most essential first-party data set using a simple correlation, that is, prioritize data according to two core parameters: the level of its accessibility and the volume of Return on Investment (ROI), expected from its further use in an online marketing and advertising tactic.
As for the evaluation of received eROI, its volume is often associated with the so-called "strength of intent" these days, which allows clarifying a more precise algorithm for determining eROI rates.
How to succeed in using first-party data?
Having analyzed collected first-party data, a company’s marketing team should pass on the next level, that is, find the best way to use analysis results in a chosen advertising strategy, In particular, their onboard use can’t but include a range of important aspects, e.g. data de-duplication, its cleansing and finding ways to match it with the processing strategies.
It is also crucial to figure out the best media types as well as testing and control methods to apply within an approved budget. What is essential is that the mentioned budget should definitely comprise confirmed duration and frequency of first-party data collection and analysis, that is, consider a company’s intention to conduct first-party data analysis either as a one-time activity, or as a permanent one.
Additionally, it is equally vital to estimate well-working dynamic creatives, not to mention the urgent necessity to determine a range of attribution parameters, most suitable for each first-party data set. In this respect, a common recommendation from experts would presuppose the shift to a unified attribution strategy that includes both online and offline attribution channels. In such a way it becomes faster and easier to accumulate maximum ROI from the use of first-party data.
In a whole, whereas it still takes less time and effort to work with the third-party audience data, it is the first-party data, which can elevate a company’s ad revenue to a much higher level.
About the author
Anton Ruin is CEO of Epom.