Harnessing first party data to maximize marketing personalization

Today’s marketers face a customer personalization dilemma.

On the one hand, customers want brands to provide messages and experiences tailored to their specific needs. On the other, they are concerned about invasions of privacy and will shun brands whose behavior oversteps the mark.

This second trend has been brought to life by the actions of platform companies including Google and Apple, which are making it harder for marketers to gain access to third-party data – especially the third-party cookies which have been commonly used to target and supress audience segments for paid media campaigns.

The result is that marketers today are having to increasingly rely on their own data to gain a clearer picture of their customers if they want to reach them with appropriate messages and offers.

For many brands however useful first party data can be in short supply, or may be distributed across a range of systems, providing no clear view of individual customers.

What is needed is a way to easily collect and manage first party data in a single location, so it can be used to provide a clear and accurate picture of each customer, their attributes, behaviors, and preferences.

The importance of getting personal

The COVID pandemic led many Australians to embrace digital channels like never before, with digital services providing a lifeline to everything from work and education to entertainment and grocery shopping.

The result now is that Australians are much more discerning regarding the digital brands they engage with and have expectations of personalized service that are higher than ever before. They don’t want to be bombarded with messages which are not relevant to their circumstances, histories, or needs.

This same trend is born out around the world, with McKinsey’s Next in Personalization 2021 Report finding 71 per cent of consumers expected companies to deliver personalized interactions, with 76 per cent becoming frustrated when this didn’t happen.

The implications of these changed expectations are clear, with McKinsey also reporting that 75 percent of consumers tried a new shopping behavior during the pandemic. Conversely, 78 per cent of consumers reported they were more likely to make repeat purchases from companies that personalized.

The n3 Hub solution

The marketing technology developer n3 Hub meets marketers’ needs for more personalized experiences by bringing their customer data into a unified system, known as the n3 Customer Data Platform (CDP).

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