Good Data is a Business Imperative
The digital age has provided marketing strategies with as many hurdles as it has resources. While the ease with which advertisers can reach an intended audience has increased drastically, the ability to stand out with an ad campaign has become harder as the airwaves are cluttered with countless other competitors reaching for the same consumers. Companies which have become the strongest throughout the rapid development of the digital age have utilized data more effectively than the competition; something that your business can do as well.
Marketing Data Gains and Setbacks – Privacy Concerns
Despite the growing demand for consumer data, there have been setbacks and consumer complaints involving how and what data is collected to benefit advertisers. This has resulted in a rapid increase for transparent and efficient data collection methods, which are becoming more readily available as the second decade of the century comes to a close. One of the driving forces behind this change is the eventual elimination of third-party cookies from internet browsers, erasing one of the most vital sources of user data for advertisers. This disruption to the digital marketplace has resulted in a driving force pushing advertisers to harvest data through first-party channels.
The need for advertisers to develop systems to collect first-party data has begun to show a gap marketing education. With many degree programs geared towards marketing relying on more traditional advertising methodology, there are many students and recent graduates who do not possess the data analyzation skills necessary to pursue digital marketing efforts without third-party help.
This lack of workforce has been compounded by consumers with mixed feelings about the personalization of advertising which advertisers are striving to provide. Despite 91% of consumers reporting that they prefer shopping with brands which they recognize, provided relevant offers, 41% of that same set of consumers reported that the idea of receiving a relevant text as they walked by a specific store was unsettling or intrusive.
Where Does That Leave Brands?
This leaves brands with a narrow path of personalization moving forward. Major, multinational brands with the resources to invest in major market studies have been finding that streamlining and simplifying the user experience has been key to success as personalization straddles becoming a faux pas. Target recently trimmed the fat off of their rewards programs, which had initially been spread over four different platforms: their mobile app, the company-sponsored RedCard, a social app called Cartwheel, and a points-based Red Perks program. Each of these rewards systems, which functioned as individualized opportunities for a personalized consumer experience, were compounded into a streamlined Target Circle program. This compounding resulted in an easier understanding of the data for the business and a simplified user experience as well.
Following the example of Target and other major retailers, it is likely that marketers will see a renewed interest in streamlined rewards programs. This move back towards a more traditional method of customer retention will help take the stress off of corralling broad swathes of data on potential consumers in order to provide hyper-personalized advertisements. In the face of a cookie-less data-collection ecosystem, having a first-party rewards platform can both provide personalized options for consumers and create a healthy environment for direct relationship building between brand and market.
While data collection will remain important for advertisers at every scale, the methods which the market develops will continue to change drastically. Consumer behavior will continue to come under consistent observation, making engaging with potential and returning consumers as vital to your business as ever. Without a progressive way forward into first-party data collection, advertisers are likely to find themselves struggling to stay competitive with larger brands –
don’t get left behind. See how M-1 Data and Analytics can help your business maintain its customer relationships today.
