Driving Personalisation on the Path of Privacy using First-Party Data: An Approach to Responsible Marketing

With heightened expectations about privacy, first party data has become one of the most valuable assets that brands have. It paints a simple and a clear picture of consumer behavior, sentiments, segments, and trends. It communicates crucial, timely messages. It measures consumer journeys with better and reliable accuracy.

Canny marketers and the savviest consultants link their relevant data sources, online or offline, to identify trends and consequently define their potential audience. However, evolving regulations and policies have impacted the way brands can effectively use their first-party data in a privacy-led, responsible way.

For instance, with Apple’s new privacy update, app developers are required to seek consent from iOS device users in order for third-parties to access users’ data. Consumers are becoming cognizant of how their data is being collected, and used to drive insights and relevance. 65% of APAC consumers believe most companies aren’t transparent about how they use their data, and 45% don’t believe that companies care about the security of their data according to Salesforce’s “State of the Connected Consumer Report”.

Extraordinary pandemic times has accelerated the pace of digitalization through AI, IoT, connected devices, and other emerging technologies, generating data at a great volume, variety and velocity. As data becomes pivotal to delivering elevated experiences, brands need to reflect, refocus, and reorganize their first-party data while ensuring consumers understand the benefits of sharing it.

What are some of the obstacles and opportunities with first-party data?

Here are a few key insights from Boston Consulting Group’s (BCG) “Understanding the Path to Digital Marketing Maturity” report.

1. 87% of APAC brand leaders understand that first-party data is valuable, but they also understand that they are not making full use of it.
2. 56% of APAC brands think that they are “below average”, “average”, or “average at best” at using their first-party data.
3. Only 5% of brands believe that they are using data to create personalized experiences for their customers

With the amount of digital touchpoints and advanced marketing technologies available, APAC brands seem to recognize the potential in first-party data.

In my opinion, the fundamental barriers are broadly technology related. As enterprises are on their way to digital transformation, they are dealing with a number of online and offline data sources, the myriad systems and processes they have to work with. Collecting, consolidating, analyzing, and activating data sources from various platforms is a mammoth challenge, particularly for companies that have been there for long with legacy systems and multiple databases, that complicate the transition or integration with the new technology and practices. Up to 62% of brands believed the inability to link technologies as their top barrier, while 46% of the brands believed that they are inhibited by a general lack of data literacy and how data can be used.

Breaking down silos, adopting new technology, and keeping updated with the latest policies is about a year-long sprint-led digital transformation, but the benefits are realized.

Social and digital media, and business intelligence can help brands proactively identify what trends audience are riding on, and consequently define what their audience look like. By creating custom personas based on digital and social media interactions, you can execute campaigns and focus on productions that will drive positive brand presence and reputation.

Strategic analytics and insights can help brands with streamlining consumer engagement across digital touchpoints to provide personalized experiences. By segmenting media consumption across platforms, video and content categories, across various measurement and timeline parameters, brands can derive immediate actionable insights to personalize content, and create resonating content on their platforms.

Data-driven, privacy-led approach

The impact of this global pandemic is shifting people’s preferences and priorities to convenience, safety, and personal care as they digitally engage themselves in immersive and virtual communal experiences through apps like Houseparty app, and Netflix Party and video conferencing, online food ordering and delivery systems, contactless payments, and carrying out home-based activities by watching videos on home-based baking, cooking, exercising, and dancing on social media. And as the Digital Consumer’s behaviours evolve, brands are able to build their first-party data capabilities and speed up their journey in the digital marketing curve.

While the role of first-party data will differ across industries, businesses, and functions, brands should start to rethink and be more explicit about what data they collect, how they collect it, and why they collect it. Being intentional and transparent on the data they collect from their users helps build trust, and reinforces the purpose of value exchange through the collection and usage of data. Once the above is established, brands will be able to build impactful marketing campaigns that deliver distinctive and human-centric experiences while enhancing their reputation and presence.

Head to Bloomr.SG to understand how we help brands deliver impactful social media campaigns, by creating engaging content. For deeper insights into evolving trends, the opportunities to ride on, and how to create greater content, contact us now!