First party data collection has become more important than ever. With consumer concern and the inevitable demise of third party data, companies are turning to first party data. This not only helps companies receive more accurate data, but offers a transparent and secure option for data collection. Subsequently, this is generating great results.
This was confirmed by Camille Maréchal and Ombeline Nguyên from RAZORFISH. In our interview, organized by Adobe*, we discuss how first party data is innovating the marketing world and its importance to conversion rate optimization (CRO).
First Party Data : An 18% Increase in Consumer Conversion
* Disclosure, Adobe is a client of Visionary Marketing
Third Vs First Party
Third party data, also called cookies, is information collected through several different sources. Most typically gathered through various websites as you surf the internet, taking note of what you search and deciphering your interests. This builds a virtual profile of you, and companies will The B2B purchasing process is the result of a long life cycle often linked to a contract as there are many people to convince. this information from data providers.
First party data is information collected directly by the organization. This is collected through surveys, feedback, website behavior, and by several other means within their own website or app. Nguyên refers to this as ‘logged environments’. It ensures reliability, accuracy, and is a more transparent to the consumer.
With the data breaches caused by cookies, businesses are looking towards its counterpart.
Camille Maréchal: “We need to anticipate the upcoming change around the deletion of cookies, and focus on First Party Data to improve customer experience and conversions.
It’s a business objective, not a technological one
So instead of companies extracting data from consumers through the veil of hidden cookies, they simply acquire that information themselves. This results in receiving more accurate data with 100% significance.
More importantly, this gains the consumers trust and consent.
How does this relate to Conversion Rate Optimization (CRO)?
Customer conversion sounds quite robotic and a bit frightening if I’m going to be honest! Essentially, this is a business term for getting customers to perform a specific task. It’s quantifiable data that can take the form of more subscriptions for a catalog, an increase in sales on a product, more downloads, or anything the business desires.
In other words, turning potential customers into customers, subscribers into members, or a lead into a sale.
Having first party data is a key component to CRO. It allows for the company to tailor ads or cater an experience to a user who has shown interest in a specific area.
Customers won’t convert if you are displaying ads for pencils when they’re in the Market definition in B2B and B2C - The very notion of "market" is at the heart of any marketing approach. A market can be defined... for a keyboard
The CRO Cycle
Ombeline Nguyên: “There is no specific methodology for the conversion rate optimization cycle. Though there are structures that are typically followed.”
Conversion rate optimization is developing in a major way
The process depends on each company and the resources they are able to allocate to it
A simple structure is as follows:
- Have a goal: There must be clear objective and should be measurable
- Collect the First Party Data: Be sure to collect relevant information from your demographic. Let me stress the word ‘relevant’ in that sentence
- Implement: Design the experience or direct the ads, prioritizing the goal
- Track the Progress: Look to see if sales, clicks, or subscriptions are being made throughout the CRO marketing efforts
- Adjust: Use results and feedback from the efforts and adjust accordingly
To reiterate, each company is different and what works for one may not work for the next. The important thing is to understand the customers values. That way not only the business can reach their goal faster, but the user can as well.
Camille Maréchal: “We may have less data in this new landscape, but it will be more accurate and allow for a more tailored experience.”
This makes the process much more enjoyable for the user
Nissan’s First Party Data Project
In Nissan’s first party data project, they implemented this sort of technique. The Covid-19 period had put Nissan in a very bad position. People weren’t able test-drive the cars and weren’t requesting quotes, which was the way Nissan had generated their leads. As a result, they had to reimagine their business model.
The goal was to generate more leads through their website. They began collecting first party data rather than acquiring cookies. Then redeveloped their website and implemented a new, tailor-made experience for their users.
Camille Maréchal: “They evolved and added new things as they went along.”
Nissan utilized UX-UI tools to research, design, and analyze their progress, and adjusted as needed
This proved to be a huge success.
Nissan gained an 18% increase in customer conversion through their new conversion rate optimization tactic alone. Taking full advantage of the first party data they’ve collected. Not only did they succeed in generating more sales, but they did it in a transparent, trustworthy, and efficient manner.
First Party Data: First Place Prize
In conclusion, first party data is proving to be more important than ever before. Not only through the future extinction of cookies, but as an effective and trustworthy way to create customized experiences for users. Nissan was able to prove this with great results.
We are on the cusp of big change in CRO with the use of first party data. Companies are beginning to recognize this. Resulting in user experience and trust building becoming a higher priority.
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