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Three Steps Marketers Should Take To Build A First-Party Data Oasis

Forbes Agency Council

Founder, CEO and community-powered marketing pioneer, leading Vesta's company vision and SaaS platform innovation.

Google recently clarified its new privacy policies — cracking down on user tracking as it phases out support for third-party cookies. We're also seeing proposed legislation that tackles data permission and disclosure at the federal level, creating nationwide standards comparable to the California Consumer Protection Act (CCPA) and the General Data Protection Regulation (GDPR). 

With the heightened focus on data and privacy, marketers genuinely need to ask themselves: How is my brand prepared to maintain market share without the firehose of data we're accustomed to?

Marketers must pull off a spectacular magic trick these days. The majority of consumers support data transparency and privacy. Still, they also want a customer experience rich with personalized interaction, convenience and a deep understanding from a brand about "who they are" as a person. Capturing the zero-party and first-party data to make that happen requires intentional strategy.

Here are three things your brand should have:

A transparent stance on your first-party and zero-party data strategy to help enhance your brand positioning and trust. 

According to the Pew Research Center, nearly 80% of adults in the U.S. say they are very or somewhat concerned about how companies use their collected data. For the past decade, the typical consumer has been relatively blind to sharing their information with potentially hundreds of partners. While many consumers are still in the "but wait, they collected that?" phase, others understand just how much companies and advertisers know about them. 

Most consumers expect companies like Dropbox, Salesforce and Uber to get high marks for privacy practices, given their business's nature. As we look to the future, most consumer brands may no longer be just manufacturers or service providers but technology companies in disguise. Some brands already openly admit this, like when Domino's said it's a "tech company that sells pizza." With that, consumers will want to know why your brand believes data is essential. How is it related to your unique value offering?

Consider creating your version of a data Bill of Rights. Data is an omnipresent part of our lives now. The longer you pretend that consumers don't know or don't care about data, the more at-risk your brand will become to losing trust. The brands that take a stand now on how they believe data plays a role will earn greater loyalty. 

First-party data-generating technology as a long-term investment to reduce your turbulence and reliance on gatekeepers. 

As Google and others start implementing these new changes and more regulations emerge, brands should create an owned channel for data collection. This can be accomplished through an email list, a loyalty/rewards program or an online brand community — all of which have benefits and shortcomings. 

A potential blind spot for marketers is that even if you have an owned channel, consumers will not automatically give up their data. Brands must build an engaging home for zero-party data and first-party data to be collected and acted upon, and offer a strong value exchange between consumers and brands. Marketers must activate their loyal customer communities and encourage social interaction.

Look at the nonprofit charity:water, for example. They have a highly-touted email marketing strategy that generates automated emails to show donors how their money is making an impact over time. With that kind of participatory communication, it's easy for consumers to opt-in. Another example of value exchange is clothing retailer Madewell. Signing up for the Madewell Insider program earns members free jeans hemming, collectible totes, event invitations and more.

First-party and zero-party data to help take personalization from 'creepy' to 'constructive.' 

Personalization is vital to driving revenue. Some research indicates that personalization can generate $20 in ROI for every dollar spent. It's worth the investment. 

However, many organizations limit personalization to surface-level data or other passively collected behavioral information. This can backfire. Consumers view a big difference between the validating feeling of "you know me" and a creepy feeling of "how did you know that?" 

Marketers should plan strategically for how each data "ask" should enhance the consumer experience emotionally. Use this opportunity to elevate your personalization efforts by focusing on values, core beliefs, interests and passions. 

Consumers who share their geographic location will appreciate localized offers. This also applies beyond personal profile information and extends to their thoughts, opinions and actions. A consumer whose personal value is generosity will appreciate knowing your brand's cause-marketing efforts. Are you soliciting their feedback about the brand? Tell them how their opinion mattered in shaping a new initiative. 

Final Thoughts

Consumers realize their data has incredible value and are becoming more selective about who they choose to share it with. Data no longer has to be a passive activity happening in the background but an active expression of trust and a currency of brand loyalty. First-party and zero-party data is no longer on the nice-to-have list and must become a part of the overall marketing strategy.


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