As you know, third-party data will gradually die out. From 2023 on, the data that belongs to your company will be critical to its success. And that means that implementing a strategy to use your own first-party data is critical to the future of your business’s ability to compete and grow. A few ways you can use first-party data to achieve your business goals are listed below.
First of all, first-party data is fully compliant with privacy requirements because it is collected with the consent of your customers. We do not use third-party data from dubious sources.
Use first-party data to create more comprehensive customer profiles. Segmentation based on customer profiles can take into account any available user properties. For example, Google Analytics 4 has tens of predefined user dimensions like the following:
- Device brand
- Operating system (app, web)
- Platform (app, web)
You can also collect and use custom dimensions and metrics in Google Analytics 4 via Google Tag Manager. It can be based on the implementation plan and tailored to your business needs. These case studies provide best practices from Optimics Analytics implementation specialists:
- SKODA AUTO
- Česká Spořitelna
A consumer segment can be understood as a group of customers who have similarities that are relevant to communication. In customer segmentation, customers are usually allocated to one and only one segment.
It’s important to know your most profitable customer segments. Which of your customers has the highest customer lifetime value? And which customers are most likely to return for purchases?
A retailer can determine which customers to return to first by identifying the most valuable customer segments.
It also helps to send targeted ads or newsletters and encourage repeat purchases through customer-friendly discounts.
Audiences are customers who can be targeted by advertising. By creating similar audiences or using your first-party data, audiences can be built. The same customer can be in many audiences.
Using first-party data, you determine the interests of your customers and tailor the value of your products and services accordingly to each customer or customer segment.
To make each customer feel special, you need to know their customer experience and interests and personalize it.
Utilizing first-party data, you can personalize your campaigns for each channel, such as your own website or mobile app, email, push, SMS, or targeted campaigns on advertising platforms. You can personalize your leads and this could increase cross-selling
Using first-party data, you can analyze all stages of your products’ delivery journey and the factors that influence the share of repurchased items and the share of returns. For example, you can find out which customer segment has the highest conversion rate from items added to the cart to paid orders. Or how the conversion rate from cart to checkout depends on the region, shipping terms, cost, and time of delivery.