Personalisation is widely recognised as a key component of great customer experiences. But businesses seeking to create those experiences online face losing one of the most tried and tested tools at their disposal.
Third-party cookies have been the main way to track consumers across websites. But in January 2021, Apple announced that apps running on its latest operating system will be required to display a pop-up where consumers must opt-in to have their data tracked. And Google has committed to “fundamentally enhance privacy” and phase out third-party cookies on its Chrome browser - although the date for this move has since been delayed by a year to mid-2023 due to regulatory issues.
The end of third-party cookies and the impact it has on how businesses target, frequency cap and track attribution in digital marketing will make organisations more reliant upon first-party data - information a company collects directly from its customers - to create great experiences across the customer journey.
Success will depend on how they define, manage and measure this data.
Define
When thinking of first-party data, what may initially come to mind is structured data such as customer records or survey data that is easily formatted and analysed. In fact, the majority of first-party data is unstructured, such as social media posts or recordings of contact centre calls and service interactions.
Unstructured data is generally perceived as being harder to categorise and interrogate in search of interesting patterns. But technology is helping to overcome these challenges - and there are rich rewards for those who tackle them successfully.
By marrying different data sets - for example, customer relationship management (CRM), social listening and survey data - we can better recognise, understand and interact with customers regardless of the channel or moment in their journey or relationship.
“First-party data increasingly needs to include emotional, behavioural and predictive insight based on both unsolicited and unstructured sources in order to embrace the opportunity that this presents.”
Alison Blair, Research Leader at PwC
Manage
Not all businesses are as customer-centric and data-driven as they would like to be. Data is often decentralised and unconnected, meaning teams don't benefit from the work of other departments and individuals can’t collaborate effectively. And because data is fragmented across the organisation, it’s difficult to act upon. Every data owner only sees their view, not the customer’s.
What sets leading businesses apart is that their data is linked and driven by technology. Experiences need to be managed and the data connected. Combined insight sources should be viewed in a single platform.
“Bringing your structured and unstructured data together into one platform allows you to manage the entire experience for customers. It overcomes the problem of data and organisational silos. And ultimately it gives you greater insight and with the right action results in a better experience for the customer.”
Shobana Rajamani, EMEA Ecosystem Leader at Qualtrics
Measure
Harnessing multiple sources of data - first-party and operational - helps build a rich picture not only of how you interact with customers but, most importantly, how you make those interactions even more meaningful and commercially beneficial.
Our Growth through Experience research shows how great customer experience delivers a return on investment and creates growth. For example, the study found that a customer who has a great experience, as opposed to just a good one, is 2.2-times more likely to use the brand again for a different product or service and 2.1-times more likely to recommend the brand.
First-party data helps build loyalty through deeper, more emotional relationships. People enjoy the experience, stay and buy more. It also helps identify unmet customer needs, supporting product development and new revenue streams.
To discuss how to harness first-party data for improved customer experience and growth within your business please contact Alison Blair.
