First-party data trumps third-party for marketing success - reportby
The most successful data-driven marketing campaigns are based on first-party information gleaned from across a range of devices and channels, according to research.
A survey of 302 North American marketers undertaken by market researchers econsultancy and commissioned by marketing software provider Signal revealed that among those whose campaigns generated the largest return on investment (ROI), 81% said they regularly used first-party data, that is, information they had collected personally from their own customers.
About the same number also intended to employ a lot more of it in their campaigns in future, with one in four indicating, conversely, that they intended to reduce their use of third-party data, or information brought in from an external provider.
Mike Sands, Signal’s chief executive, said: “Marketers are under pressure to provide more relevant customer experiences powered by insights from their users. This report highlights a sea change n the industry’s data landscape as marketers increasingly turn to first-party data to fuel better personalisation, more precise targeting and improved marketing ROI.”
Around three quarters of respondents said that first-party data gave them the best insights into their customers; 64% that it provided the biggest increase in customer lifetime value and 62% that it generated the highest lift of the different data sources. Less than 10% reported gaining the same benefits from third-party data.
To break these findings down a bit further, two-thirds of those questioned said first-party data enabled them to boost their campaign targeting and analysis, while three in five indicated that it helped them improve personalisation, attribution and audience segmentation activities.
But the most successful campaigns of all came about if marketers used a range of devices and channels beyond their websites in order to gather such information. Three in five of the top performers collected data from mobile applications, 61% from email and text messages and 23% from beacons.
“Stitching together first-party data across devices and channels is the key to building insightful customer identities and supercharging marketing programmes,” Sands said.
He also pointed to second-party data, or information shared among trusted parties, as an additional effective but underused resource. Around 77% of the highest performing marketers used such data compared with only 48% of their peers, although three out of five planned to use it more frequently, suggesting that they were becoming more aware of its value.