Insights

Chicken and the Egg: Customer Loyalty and 1st Party Data

March 31, 2022

By now, we’ve all grown accustomed to that popup or banner offering the non-edible cookies, which are generally accepted without milk. The recent years have been full of data news and privacy changes, leaving brands to strategize how to engage with their target audiences. The traditional marketing funnel is changing, requiring brands to keep their funnels filled, or risk being irrelevant. Cookies are one way to track and engage potential customers; but what exactly are they and how are they used? 

We’ll start by covering the basics before diving into how data can be used to improve customer loyalty. Essentially, cookies are one way for a brand to collect data, which falls into one of the following categories:

1st party data (1P) is gathered directly from the user’s interaction with the brand via website visits, mobile apps, email, point of sale, call centers, etc. It is collected and owned by the brand.

2nd party data (2P) is gathered in the same way, but shared from a trusted partner. This data isn’t available to everyone, it’s protected and can’t be purchased.

3rd party data (3P) generally isn’t coming from a direct interaction with the user. A 3rd party source has collected and organized it, making it available to purchase. 

It should be mentioned, there is a new term being introduced called zero party data. We’re not here to argue the term, but just to provide clarity. Zero party data comes from a user willingly trading their information in exchange for something from the brand. An example would be signing up for a newsletter to get 10% off your first order. 

Now that data is collected and sorted by the brand, campaigns can be created based on existing trends and user interactions that have already happened. This can and should be a good thing! Users want their experiences with brands to be positive, and brands reap the reward for a positive experience. This data gives brands insight to how customers move through the funnel, and strategies are developed to improve that journey. 

Every brand has one goal in mind, generate revenue. Once customer loyalty is established, that company has easy access to a pool of dedicated customers, leading to repeating and increased revenue. As these valuable customers continue to engage with the brand, that brand keeps collecting information to further improve the customer experience for everyone else. That improved experience leads to more customer loyalty, more data collection, and the cycle continues. 

This all sounds good, in theory, but how do brands actually make this happen? It takes upfront strategy and system development. This is where the experienced team at Kubient acts as an extension of your team to identify sources, collect, sort, and interpret data. With this data in mind, we develop a strategy to reach your customers through an omnichannel and fraud-free marketplace. Our skilled team, with access to Kubient’s quiver of industry-leading tools, designs and activates full-funnel, KPI focused digital strategies. Once implemented, we continue to test and improve that strategy, leading to better customer experience, and ultimately driving customer loyalty. Improved customer loyalty leads to more 1st party data and the cycle continues.

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