Marketers have long relied on third-party data as part of their data-driven marketing efforts. The most successful marketers use significantly more of their own customer data for their data-driven campaigns than less successful marketers, as a new study by Econsultancy and Signal, the world's leading provider of cross-channel marketing technologies, shows.
"Marketers are under pressure to create more effective customer experiences based on insights about their users' behavior," said Mike Sands, CEO of Signal. "This study highlights a profound shift in the industry's data landscape as marketers increasingly turn to first-party data, i.e. data from their own customers, to better personalize and target their campaigns and increase ROI."
The survey of US marketers showed that 81 percent of marketers who reported the strongest ROI on their data-related investments regularly use first-party data, while only 71 percent of marketers with less spectacular results typically do so.
First-party data provides the highest quality insights into customer behavior. More and more marketers are relying on this valuable data source: 82% stated that they would use more first-party data in their campaigns in future, although not a single marketer said they wanted to reduce their use of first-party data. In contrast, one in four respondents said that they would use third-party data less frequently in future.
The study also examines second-party data, for example data that is shared with trusted partners. This type of data is considered to be an effective but underutilized data source. 77% of top performing marketers use second-party data regularly, but only 48% of less successful marketers. 60% of those surveyed would like to make greater use of second-party data in the future. Marketers seem to be slowly realizing the value of sharing their customer loyalty data.
Marketers rely primarily on first-party data to improve their key performance indicators in the long term: 74 percent stated that this data provides the best insights into the behavior of their own customers. 64% believe that this type of data improves customer lifetime value the most. 62% said that first-party data is the most important source of data for campaign success. Less than 10 percent of the marketers surveyed expect the same positive effect from third-party data.
Companies with the most profitable data-driven campaigns not only prefer to use first-party data, but can also use their newly gained knowledge more precisely in important data-related procedures. For example, 66% improved their campaign targeting and analytics, 60 percent were able to more personalize their marketing activities and 59 percent were able to more successfully realize their potential in attribution and audience segmentation.
The study revealed major differences between the top-performing marketers and the rest: the most successful have already adapted considerably better to the multitude of new channels and devices beyond the web:
- 60 percent also collect and use data from mobile apps, compared to 41 percent of the less successful ones
- 60 percent also collect and use data from email/SMS, compared to 47 percent
- 23 percent collect and use data from beacons, compared to just 8 percent
"Merging first-party data across devices and channels is critical to gaining useful insights about customers and helping marketing programs achieve unprecedented opportunities," explains Mike Sands. "Signal's Fuse platform helps realize these goals by providing a unified and complete view of the customer across online and offline channels that brands can use for smarter marketing." The survey of 302 marketers was conducted in May 2015. You can download the study entitled "The Promise of First-Party Data" at here download