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In episode 54 of the Customers Who Click podcast, I spoke with Jon Halley about the importance of first-party data.
1st party data is so hot right now. With data-related issues around the death of third-party cookies and iOS14 update, many brands are scrambling for an alternative and are rediscovering first-party data and how to make the most out of it.
It’s such a powerful tool that can be applied to any aspect of DTC business, from acquisition, customer service through to retention and loyalty. The more you know about your customers, the more segmented & personalised experience you can deliver and trust me when I say this, your customers only want to see offers relevant to them and their needs and wants.
More importantly though, customers are more than happy to share it with brands, given they’re offered value in exchange.
Jon is the European Executive Director of Wunderkind, a performance marketing agency delivering one-to-one messages at scale at a scale that’s not otherwise possible. Previously, he was involved in the B2B SaaS space for 11 years before making the transition into the retail industry. You can connect with him on LinkedIn or head over to www.wunderkind.co.
02:27 - 04:45 - Why Should Brands Pay Attention to First-Party Data? - Ultimately, the more you can learn about your customers, the better you can market to them. Customers aren’t tired of seeing multiple ads per day, they’re tired of seeing irrelevant and intrusive ads for products they’re no longer interested in.
There are two types of 1st party data you can collect - on-site which gathers insight about the user’s behaviour, preferences or intent and CRM, which tells you about their purchase history, frequency or even their birthdays. Both will help you better engage your customers and increase their LTV.
05:00 - 11:37 - Biggest Myths and Misconceptions about First-Party Data - One of the biggest ones is that you only need first-party data. The thing is, if you are only relying on 1st-party, you could be greatly limiting your understanding of a wider web audience. It’s good to have a healthy blend of both, 3rd and 1st party insights so that you can model your lookalike audiences.
Another misconception is that GDPR doesn’t allow for third-party cookie tracking. Assuming you have things like transparency, safeguards, and regulatory controls in place, there is nothing preventing your brand from leveraging third party data to inform and base marketing decisions on.
11:59 - 15:09 - Key Things To Consider About Using First-Party Data - With the current state of the world and the DTC space exploding in growth, it’s absolutely crucial to keep up with that pace. Another thing to consider is buying your audience vs building a community and it just ties closely to the first-party consent capture - if you do go down the route of building the community, the cost implications of buying an audience are plain to see.
15:21 - 20:36 - What Does It Mean to Have One-To-One Conversations with Customers - Obviously it’s a huge challenge for marketers today, with 20+ different channels it’s hard to stay on top of them all. But it all boils down to your ability to build a community around your brand and taking ownership of your channels - give them a reason to come back instead of spending advertising dollar to achieve that.
With paid channels, you’re always hoping for customers to visit your website, purchase and return in the future and you really have no way of identifying or nurturing so having that one-to-one conversation with them becomes impossible.
20:39 - 30:22 - Biggest Mistakes Brands Make - One mistake is relying heavily on discounting to collect data from your site users - there are other incentives you can offer in exchange for customer data without devaluing your brand.
Another one is focusing all your efforts on paid channels and neglecting the community building aspect. Jon feels this has become a habit for many brands - pumping money into huge performance marketing engines instead of putting effort into encouraging customers to share their data on their own accord.
30:32 - 38:14 - Upcoming Trends with First-Party Data - With the third-party cookie phase-out and iOS 14 update, our reliance on 1st party data will increase. And also thereafter, the scaling of own channel marketing more aggressively. Exploring new channels (such as SMS, for example) will be big moving forward too.
38:24 - 41:10 - Jon’s Marketing Pet Peeves - Jon’s got a couple. First is choosing the wrong channel to communicate with your customer segments - it all comes down to how well you know them and which channel they’re most active on. The second is brands underusing the data they collect from their customers. It’s extremely frustrating having to repeat information you already provided to purchase the right product - it shows you don’t care about your customers.
47:01 - 40:54 - Jon’s Underrated Aspect of Marketing - Audience ownership and own channel marketing. It’s easier to carry on with paid channels but you don’t own them and have no way of optimising them to get more out of ad spend.