This is the second in a series of blogs on the value of first-party data, and why brands are methodically converting their unknown audiences into known contacts — and their formula for success. Click to read our first blog post in the series HERE.
By crafting experiences in which customers and prospects want to participate, and by asking questions or structuring experiences to collect specific information (e.g. enter your email to claim a coupon, or tell us your hair type and primary hair concern to get a personalized product recommendation), brands can get the exact data they seek — growing the size of their database by converting unknown audience members to known contacts, and enriching the profile of each contact.
Moreover, by engaging consumers in an ongoing conversation — using a variety of digital experiences — brands can progressively enrich profiles over time.
The act of participation alone often yields valuable insights — for example, signing up for a coupon or completing a product configurator (like the one shown above) is a strong signal of intent to purchase.
Why do consumers share their personal data with a brand? While privacy is top of mind these days, consumers are more than willing to share data if it’s worth their while and they trust the brand. Conversion rates are high when the experience offers clear value in exchange for participation, and the brand clearly communicates how the data collected will be used.
"Companies need to be creative in developing applications and offers that reward customers for sharing data,” according to McKinsey. “Our research shows that 35 percent of online buyers are willing to share personal information in exchange for promotional coupons.” A recent survey from BRP Consulting found that “64% of consumers are fine with retailers saving purchase history and personal preferences if more personalization is offered.”
This is the first-party data formula that the most competitive brands and fastest-growing, direct-to-consumer upstarts are following. They are taking a deliberate, methodical approach to creating a variety of digital experiences that collect the exact data they need — from email, age and location to personal preferences, needs, intent and more — and offering value to consumers in exchange for sharing their personal data. They are integrating this data with their marketing, advertising and e-commerce operations and leveraging it to target individuals with highly-relevant content and offers, deliver personalized experiences, recommend products — and ultimately fuel growth for their brand.
Forrester agrees, noting in a recent report that in 2019, the industry will “say goodbye to third-party data” and hello to data that consumers are sharing with the brands they interact with, which in turn is empowering marketers and brands to build direct relationships to give consumers what they have always been asking for – personalization and relevance.
Download our eBook for all the details on how the most competitive brands and fastest-growing, direct-to-consumer upstarts are following this formula for first-party data success.