Data is a valuable resource for marketers as it is crucial for the development of an effective marketing strategy.

A data-driven marketing strategy is an effective way for you to increase your reach, attract new potential customers, prompt a purchase, and generate revenue.

Thankfully, there are various sources to obtain important data on your audience. The most commonly used sources are first and third-party data.

First-party data is the data you collect directly from your existing customers and audience.

Third-party data is data that is collected from a variety of sources by data aggregators and stored in a central database.

Third-party data is slowly but surely losing its mass appeal, especially due to serious concerns over consumer data privacy and protection.

In addition, the introduction and tightening of regulations such as the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) basically restrict the free collection, storage and transfer of consumer data.

With heavy penalties for non-compliance, a lot of organizations are now looking for an alternative yet effective solution.

The implications for your marketing strategy.

With new stringent laws governing third party data and penalties over its misuse, it is time for you to prioritize the use of first-party data in your marketing strategy.

If you are already utilizing a retargeting pixel on your website and other relevant online platforms then you are on the right track.

Retargeting pixels qualify as first-party data since they track and obtain vital information on users’ behavior and activity on your website.

An added advantage is if you have been using a customer relationship management (CRM) system to collect, store and manage all your customer data and interactions.

When used the right way, you can capitalize on your CRM data and existing user database to remarket previous buyers and increase engagement with your existing audiences.

Integrating First-Party Data In Your Digital Marketing Approach.

Remarketing is a marketing tactic that allows you to target a specific set of your audience on a large scale. A vital component for the optimization of this retargeting strategy is data.

First-party data can inform you of prospects who leave your website without completing or making any positive action.

The information captured by first-party data allows you to create an audience list of visitors you want to follow with relevant content.

First-party data is reliable and high quality because you collect it directly from your audience. This way you are certain that it is a true representation of actual interactions users have when they are on your website.

The proper analysis of your first-party data enables you to segment your audience based on their interest and behavior. These audience segments could either be broad (comprising users who visit your entire website) or granular (comprising users who visit specific pages or sections of your website).

For maximum performance of your remarketing efforts, you can then create highly personalized messages that will satisfy the interests of those individual segments.

Below are some top tips on how to take advantage of your first-party data and improve your remarketing efforts across all online platforms:

1. Upsell and Cross-sell your customers:

Upselling is basically the process of convincing a buyer to purchase a higher-end product or item than what they initially had an interest in.

Cross-selling, on the other hand, involves persuading a customer to buy an additional item that is related to or complements their initial purchase.

If a web visitor converts, you can study your CRM data, to figure out complementary or additional items they might be interested in. For instance, if a visitor purchases a camera, retarget them with Ads offering them a tripod or camera strap.

The primary objective of both upselling and cross-selling using first-party data is to offer more value to your customers, raise the average amount of your sales at the point of purchase and save costs on marketing.

2. Pay attention to seasonal shoppers:

Seasonal shoppers are your customers who make purchases only during specific times of the year(such as festive periods and holidays). You can create an inclusive list of all these customers and the products they purchase most often. With this data, you can increase your marketing efforts during the respective season targeting this particular audience segment.

3. Incorporate Video:

Users are very much visual-oriented individuals. It is safe to say that consumers enjoy videos more and are most likely to pay attention to it.

This is very evident in a study which revealed that 54% of consumers wanted to see more video content from their favorite brands.

You can convey a thousand words in a short video clip. Consider using clear and interesting videos to advertise your products, not just the best-performing items, but also those with low sales.

4. Use incentives to encourage positive actions:

First-party data provides you with firsthand information about users’ behavior using your website. This way you have an idea about their interests and how to effectively persuade them into converting.

Incomplete actions most especially cart abandonment are a major problem for many businesses and brands. It hinders revenue generation and stalls long term growth.

But remarketing these sets of individuals with special offers and discounts can motivate them to return, complete their purchase and most likely become repeat customers.

5. Broaden your reach with similar audiences:

Using a good Customer Data Platform (CDP) you can collect and integrate your customer’s data in a central database for easy access. This database typically comprises all your audience data collected from multiple sources (online and offline). The unique characteristics of your stored first-party data can then be analyzed using Artificial Intelligence and processed to create a lookalike or similar audience.

This is a great way to expand your reach and find users who are like your current customers.

Conclusion:

Even though first-party data might be lacking in the level of scale required for broader brand exposure, it still has the capacity to enhance your marketing efforts.

Making the best use of your customer data and insights to refine your marketing strategy can lead to higher conversions, increase revenue, repeat purchases and return on investment (ROI).