What does Real-World Customer Data-Enrichment mean for Online Businesses?
Online businesses use first-party data collected through their own websites and apps to understand consumer behavior. But if they could get additional data about consumers in the offline world, they could get a holistic view of their consumers. Real-world customer data enrichment allows brands to monetize their first-party data by adding real-world intelligence from offline sources. There are a variety of use cases of customer data enrichment across industries.
- Real-world customer data enrichment can help publishers monetize their first-party data better and optimize yield. Publishers are also empowered to deliver more effective marketing campaigns with bespoke custom segments. They can use these data driven insights to create new products and to plan their sales efforts.
If publishers are able to identify consumers with their unique IDs across devices and channels, they could target their audiences better and provide personalized content and recommendations.
- Real-world customer data enrichment can help first-party data owners offer personalized recommendations. For example, if an online grocery brand can get real-world insights about their consumers, they can recommend brands that are more frequently visited by these customers in the offline world.
They can also use this data to roll out more innovative and relevant products, plan their sales strategies, and offer personalized content and solutions.
- Real-world customer data enrichment can help brands and marketing agencies drive better cross channel conversations and conversions. They can use ID unification to get a 360 degree view into their target audience’s lifestyles and roll out more relevant and informed campaigns. They can also use real-world data to measure the success of online campaigns in the offline world in terms of actual footfall in stores.
What is First-Party, Second-Party, and Third-Party Data?
First-party data is the data collected directly from a brand’s own audience. It could include information such as consumer behavior on the brand’s site or app, data from CRM, and from social pages and subscriptions. Since first-party data is directly coming in from the users of the site or app, it is extremely valuable when trying to understand audience behavior in order to segment and target them for marketing campaigns. It can also help customize products and services to customers’ specific requirements.
Second Party Data
Second-party data is the data collected by another party as their first-party data. Brands can buy second-party data from the company that collects and owns it. In terms of accuracy and quality, it is similar to first-party data, the only difference is it comes from a source other than the brand’s direct audience. While second-party data has the positive attributes of first-party data, it can give brands incremental intelligence.
Third-party data is the data bought from outside sources that are not necessarily the original collectors of that data. It is usually sourced by large aggregators from several other websites and apps. This data from various sources is then curated into one large data set and sold as third party data. Real world third party data can provide insights such as home location, dwell time, brand affinity, etc. over and above the insights offered by first party data.
What are the Benefits of Customer Data Enrichment?
For brands, the only source to target audience segments and show relevant ads is through in-house data and content consumption patterns. The challenge is to monetize first-party data better and expand the audience base by better understanding consumer behavior. How could advertisers combine the varied interests of their customers and personalize at scale? One step towards increasing advertising revenue is attracting advertisers and the second step is retaining them for continued collaboration. Brands need to measure and prove the impact of the advertising running on their digital assets.
What are the Different Use Cases for Customer Data Enrichment?
- Understand your Current Audience Better
The information brands have from their first-party data is extremely relevant and precise, but it often lacks scale. Adding real-world attributes to first-party data gives granular details that could never be seen with first-party data alone. For example: an eCommerce company might know, from its first party data that visitors on its website buy more during the holiday season, but real world intelligence could additionally tell which store do their target audiences visit often- this could help them recommend right products and brands at the right time of the year.
- Audience Expansion
The combination of first-party and third-party data can help brands find an audience beyond their existing audience data. Brands could not just find more people who could be interested in their products but also find an opportunity to innovate and introduce new products to suit the requirements of all the audiences.
- Better Segmentation and Targeting
While first-party data may help a brand categorize its audience into larger segments, a combination of first-party and real-world data can help split the audience into micro-segments according to very specific needs. For example, from its first-party data, a restaurant business might know that its customers are majorly millennials. While real-world data may then add another layer of segmentation such as urban and suburban customers. With this additional information, the business can initiate campaigns specific to millennials buying from urban restaurants vs those buying from sub-urban areas.
- Offer Great Customer Experience
Richer data about consumers has the potential to offer insights that can tremendously improve consumer experience in numerous ways. Not only can product offerings be made more befitting with good quality consumer data but also brands’ campaigns can be more focused and personalized. Brands can use enriched data to stay relevant to their consumers and have meaningful relationships rather than transactional conversations. Data-driven intelligence about their customers can help them build communication strategies that suit the exact need at every phase in the consumer lifecycle. When consumers know their brand understands them well, it is more likely that they will become repeat customers.
- Maximize Cross-Sell and UpSell opportunities
Clean, precise, and voluminous data sets can indicate significant consumer behaviour patterns. . Brands can use this information to understand which customers can be targeted for luxury products or can be upsold to. Good quality real-world data can facilitate a better understanding of customers and their need anticipation thereby helping brands offer relevant solutions at the right time and place- this can directly translate into more cross-sell and upsell opportunities.
- Minimize Customer Churn
Data patterns can often tell a lot about unhappy customers. Brands can use enriched data sets at scale to identify patterns specific to consumer churn and intervene at the right time to minimize churn.
How does Customer Data Enrichment help in personalized marketing?
According to the “State of the Connected Customer” report by Salesforce, which surveyed more than 7,000 consumers, if a company does not make an effort to personalize communications, 52% of consumers are “somewhat likely” to switch to a different brand.
Combining good quality data from various sources can fill significant gaps and create ways to personalize products, services, offers, and campaigns. All these efforts can in turn catalyze ways to engage at a more personal level with the target audience.
What are the Key Things to Consider Before Implementing a Data Enrichment Practice?
With the development in marketing technologies, customers are constantly getting personalized messaging and content. So how can brands break free of all the clutter created by competition and stand out in front of their customers? By adding real-world data to their digital data, brands can get to know their customers better and fine tune every interaction to get more out of marketing dollars spent. Here are the things they need to consider while enriching their data:
- Know Your Goals
Before brands begin to use real-world data to get better insights, they need to have a clear picture of their business expectations- what is it that they want out of the customer data enrichment solution. This will help them choose the right platform that can help them meet their goals faster.
- Stick to Privacy Standards
With every geographic region focusing more on user data privacy with regulations such as GDPR and CCPA, it is essential that brands are aware of a data enrichment platform’s data sources. There is a definite trail to all the online data that is collected from third parties since it is already available in public domain. In a cookie less world, real life third party data becomes more important for brands and they need to verify that their real world data partners ensure complete adherence to regional and global standards of privacy and data usage.
- Know the Limitations
Sourcing data from a myriad of vendors, getting actionable intelligence, and using that intelligence in the most efficacious way is not a simple task. Brands need to understand that customer data enrichment is a continuous process and they have to keep updating the data regularly in order to derive relevant and updated information. Also, cleaning and aligning data from various sources takes time and resources. While real-world data intelligence platforms may offer analytics, how to use it for the business becomes the next complex task ahead of brands.
How can you get your Customer Data Enriched with Real-World Data?
Brands can enrich their digital world consumer data with offline world attributes in real time. This can help them unlock the potential of their first party data to engage better with their audience.
Real world data intelligence platforms can allow brands to select data attributes from the real world that best suit their business use cases. This could include information on brand affinity, home location, dwell time, distance travelled, and multiple other real world attributes. This can provide answers to critical business questions about the target audience.
Data about people and places put together can give extremely useful information about consumer visitation trends, unique building shapes, catchment areas, travel distances, real world interests, brand preferences, and spending patterns.
The process involves copying and pasting a simple piece of code on the brand’s website/app. Users can get daily batch output in a simple CSV format posted to secure cloud storage. The enriched data can be exported to external platforms or can be consumed via a secure API.
News Corp, the global publisher leveraged real-world intelligence for targeted marketing, better return on advertising spends and increase revenue by 30% in...
It is important that third party data providers follow a privacy-led design. They must never store or deal with Personally Identifiable Information (PII) and all incoming data streams should be consensual. The platforms should also have built-in processes to forget and purge user data on request. Compliance to local privacy related regulations and secure signup and setup are equally critical steps towards ensuring user data privacy.