Data is hailed as the “new black gold” of the modern era. To continually attract members and extend customer’s lifetime value (LTV) or to expand new customer bases and uncover potential market opportunities, investing in first-party and third-party data to enhance operational efficiency has become essential for retail brands.
Amplify First-Party Data Value to Upgrade Membership Management
First-party data originates from a brand’s D2C channels, including websites, Apps, LINE official accounts, and POS systems. It encompasses browsing behaviors, items added to shopping carts, and actual transactions related to members/customers.
First-party data is crucial because it allows brands to integrate and analyze data from multiple dimensions to target customer segments. For example, identifying members with the highest repurchase frequency in the past month and focusing segmented communication on them. This strategy allows brands to plan marketing budgets and allocate resources more effectively, saving costs and enhancing marketing efficiency.
However, the “Retail Brand Survey,” conducted by CommonWealth Magazine and 91APP, revealed that 40.3% of the respondents did not know how to use first-party data to identify high-value customers. This indicates challenges in utilizing consumer data to enhance marketing effectiveness.
91APP suggests that for short-term marketing or seasonal campaigns, brands can use integrated data to identify customers with strong purchase intent and prioritize marketing resources for better conversion rates. For long-term strategies, brands can develop communication plans based on members’ activity levels , such as re-engaging potential customers to place another order or encouraging active customers to make additional purchases and upgrade to VIP status.
Effectively using first-party data helps brands manage genuine data from customer interactions and continuously nurture member relationships, reinforcing loyalty.
Cross-Referencing First-Party and Third-Party Data for a Comprehensive View of Potential Customers
While first-party data is a valuable asset, reaching more potential customers can be achieved by comparing it with third-party data from other media, such as search and behavioral data on social media. This cross-referencing helps to broaden insights into target customer profiles and can be applied in ad targeting, product development, CRM communication strategies, and marketing material design to better appeal to potential customers.
Utilizing first-party and third-party data effectively in commerce and marketing strategies strengthens relationships with existing customers and expands the new customer base, highlighting the brand’s advantages. For more information on using data to enhance member management and expand potential customer groups, download the “2023 Brand Commerce Trend Report” to understand data application trends.
