Leveraging
Rising consumer expectations, a shifting regulatory environment, and pressure on third-party identifiers are converging with the shift to omnichannel to force dramatic changes in how brands go to market. Brands need to find new strategies to understand and market to consumers. Check out these best practices to successfully collect and leverage first-party data, a must-have capability for the future of consumer marketing.
First-Party Data
in a privacy centric world
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Brands need more direct relationships with consumers.
of US adults decided recently not to use a product or service due to privacy concerns
52%
L’Oréal Taiwan needed a better way to understand customer omnichannel behavior in the fast-growing Asian market. By bringing online and offline customer data together in Google Cloud and the Google Marketing Platform, marketers were able to develop and act on predictive insights about how online behavior drove offline sales.
L’Oréal Taiwan Drives Predictive Insights
“With one of our L’Oréal brands, Lancome, we saw a 2.5 times increase in offline revenue from product sales, and a 2 times improvement in return on expense.”
– Vivian Chiang, General Manager,
L’Oréal Luxe Taiwan
X
Consumers are driving the shift to first-party data. Many want more control over the privacy and security of their data.
With third-party identifiers more restricted, brands are now relying more heavily on first-party data to learn about customers and provide those personalized experiences. But many struggle to get their arms around all their data so they can activate it effectively.
Too often, the data they already have resides in silos across the enterprise. And as they begin generating more first-party data, they run into challenges gathering it together in one place and integrating key data tools such as CRM, ERP and ad platforms. It can be difficult to recruit the IT talent and data scientists they need to overcome these obstacles.
Cultivating direct consumer relationships is more important than ever before
of CG companies call inability to integrate data from multiple sources a top analytic challenge
42%
of CGs call working in silos a top roadblock to marketing success
48%
Solving those issues is necessary to tackle critical but complex use cases such as:
• Increasing customer lifetime value
• Creating advanced audiences
• Delivering advanced personalization
Brands are turning to Customer Data Platforms to unify their data and make it accessible across the enterprise. A CDP creates the foundation for the next generation of consumer insights.
Complexity and scale dictate how to address these challenges.
Different approaches to CDP are appropriate depending on the consumer goods company.
Buy a packaged solution
Build your own customer data platform
• Quick time to value
• Benefit from pre-built components such as activation APIs and GUIs
• Access new features and capabilities as developed by the ISV partner
• Develop custom built features and functionality
• Build custom connectors that matter the most to your company
• Integrate partner solutions and new functionality as needs evolve
of consumer goods companies call consumer insights a top focus for analytics
61%
Using a CDP, all brands can make all of their data—first party, third-party, transactional, and otherwise—deliver actionable insights across functions. Everyone in the organization is working off one, central source of insights about their customers. Brands also gain much-needed security and control over customer data. That allows brands to mine this data to:
Taking the right-sized approach to customer data pays dividends.
Grow revenue
Build loyalty
Generate insights to fuel business innovation
With a Customer Data Platform built on Google Cloud, enterprises can address the additional challenges that come with their larger scale and scope.
of enterprises are planning or considering an investment in CDPs to enable their CX priorities in the next normal.
34.5%
Transforming marketing
Elevating customer centricity across the enterprise
Enterprise brands can transform marketing by capturing and acting on customer data in real time. They can leverage AI/ML to drive personalization at scale. A well-crafted CDP platform also fuels predictive marketing, widely seen as the next frontier in driving customer relationships.
A well-designed cloud-based Customer Data Platform also enables enterprise-wide customer-centricity to elevate internal customer analytics capabilities. Brands can leverage the greater availability of customer data to perform advance forecasting, and enhance operational agility by connecting operational, consumer and other data intelligently.
A great CDP also offers world-class data security, an essential to alleviate consumer privacy concerns and ensure regulatory compliance.
Firms using first-party data for key marketing functions achieved up to a 2.9X revenue uplift and a 1.5X increase in cost savings
“Having machines analyse the huge amount of customer data now…means that CLV can be based on many more detailed metrics than ever before.” —eConsultancy
A rapidly changing privacy landscape and evolving consumer expectations mean brands need to elevate their ability to leverage first-party customer data. Customer data platforms are a key enabler, but a come with a broad range of capabilities. For the complex needs of enterprise brands, adopting a Customer Data Platform built on Google Cloud provides the flexibility and scale essential for taking first-party customer data management to the next level.
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Prepare for the new world of first-party data by adopting a CDP
Consistent delivery of personalized CX is expected by
According to BCG, best-in-class brands develop a clear strategy for first-party data.
CASE STUDY
TAIWAN
CLICK TO READ
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Sources: 1- Pew Research | 2- CGT Snapshot Survey | 3- CGT | 4- CGT | 5- IDC
6- CGT | 7- IDC | 8- Google | 9- eConsultancy | 10- BCG
Clicking the statistics and quotes in the presentation
will open the source in a new window
At the same time, consumers’ expectations are higher than ever—personalization can help brands drive loyalty and revenue growth by providing the increased convenience, value and serendipity that consumers are looking for.
75%
of customers
to remain loyal.
12 ways a CDP can help you drive consumer centricity
01
Enhanced Consumer Understanding
Understand, conceptualize, and construct consumer profiles, including behavioral, attitudinal and other attributes.
02
Smart Consumer Segmentation
Create look-a-like segments for analytics and activation based on 1P data across multiple touchpoints
03
Personalized Marketing Communication
Action the insights on individual consumers by delivering them the next best action, in the right message, at the right stage of the consumer journey.
04
Attribution Modeling
Analyze performance of marketing and advertising efforts at a granular level (e.g., after completion of individual campaigns) to surface highest ROI channels and campaigns
05
Marketing Spend Optimization
Perform real time consumer marketing spend analytics to review and inform marketing budget allocation across marketing channels and audiences
06
Consumer Signals for Demand Sensing
Improve accuracy of sales and operation planning to help shape demand, optimize distribution and increase revenue.
07
Ecommerce product recommendations
Personalized product recommendations, 1:1 merchandising / rank assortment to cross-/up-sell, drive online revenue and reducing cost.
08
Consumer Lifetime Value Optimization
Generate and action on prescriptive marketing insights aimed at extracting maximum per-consumer value over their lifetime and minimizing churn.
09
Propensity to Convert Modeling
Predict customers who are most likely to make a purchase, so that you can personalize communications with them.
10
Trend Spotting
Utilize consumer insights and analytics to understand trends to identify promising product innovation / renovation areas early.
11
Sentiment Analysis
Harness insights from consumer sentiment across social media platforms to inform your product innovation using AI/ ML.
12
Accelerating Qualification & Innovation
Accelerate analysis of consumer data for rapid qualification and speed to market.