Image Source: Responsible marketing with first-party data
Increase Customer Lifetime Value
Irrespective of the industry or category, businesses often show more interest in acquiring a new customer than focusing on retaining existing customers. It makes sense when you try acquiring a new customer which is 5 to 25 times more likely to be expensive than retaining an existing one
A research study done by Frederick Reicheld of the bain company states “increasing customer retention rates just by 5% increases profits by 25 to 95%”
First-party data lets you understand the critical insights of customer behaviour, trends and segments. By understanding the customer deeper, you can improve customer retention by delivering a more relevant experience to customers.
Customer Data Platforms (CDP) can help you ace through understanding customer data better. For example, check out how CustomerLabs CDP increased their LTV by 10.92% using their first-party data.
Personalisation at scale:
First-party data analysis can enable you with required insights around how customers behave within your website. This can let you customize your strategies to deliver a hyper-personalised experience to your customers. Check out the case study on how Eli Lilly – A pharmaceutical company uses their data to increase the brand’s ROI between 12% and 35%.
The major challenge with personalisation using first-party data is because of data siloed across various systems. As each tool has its own data points and name associated with it. It’s hard to merge and segment them at scale.
Customer Data Platforms like CustomerLabs CDP can help you solve this problem by collecting the first-party data, unifying them, allowing you to segment them based on your preference, and helps you sync across ad platforms like Facebook and Google via server side integrations (Conversions API/ GMP).
First-party data (Anonymous visitor data) – The Untapped Gold mine for many businesses
First-party data is of two types – customer data/ known visitor data and the other one is anonymous visitor data.
98% of the website visitors won’t give you any data, i.e. name, email address, etc. and they are termed anonymous visitors.
This 98% of the anonymous visitors are mostly untouched, unused widely among the advertisers in their marketing strategies. But this major part of your first-party data can increase your revenue over 2X – 3X times .
These Anonymous visitors can be segmented based on their activities, and can be bought into funnel campaigns(retargeting etc) and finally be converted into customers.
To collect, segment anonymous visitors based on their activities like (behaviour, user journey, added to cart, wishlist, visited pricing page etc) and to sync them across various ad platforms you can use customer data platform like CustomerLabs.