Unlocking the Key to Second-Party Data: Recommendations for Success
In the age of the customer and a highly competitive business environment, smart advertisers and marketers understand that their first-party data — and the second-party data that results from partnering with a complementary retailer, brand, publisher, or marketer — can be a significant competitive advantage.
In 2017, according to a new study conducted by Forrester Consulting on behalf of ownerIQ, The Era of Second-Party Data is Here, smart ad and marketing pros will move quickly to:
– Aggregate all the sources of first-party data within their organization. The larger the organization, the more likely that it is divided up into silos that aren’t incentivized to cooperate with each other. Smart advertisers and marketers will identify the disparate first-party data collection practices within their company and strive to bring all stakeholders on board with a unified, organization-wide first-party data strategy.
– Cast a wide net for potential partners. This study focused on the second-party data sharing strategies of retailers and durable goods companies. But there are a host of other potential partners with rich data, including credit card and other financial services, healthcare, travel, and telecom organizations. Together you can identify segments of customers and prospects and move your businesses forward.
– Use attribution to control for potential audience duplication. Attribution solutions will allow advertisers and marketers engaged in second-party data projects to see where and when customers and prospects, identified through the project, were touched. This will enable them to truly understand the value that the second-party data brought to the overall campaign.
– Maintain data privacy through clear and concise terms and conditions (T&Cs). Any fears about compromised data privacy can be managed through clear and concise T&Cs that clearly describe usage conditions and provide for a negotiation/permission process.
– Remove the friction by consulting with third-party solutions providers. Direct second-party data projects between two partners can be stymied by unnecessary friction caused by incompatible technology, privacy concerns, legalities, and a host of other issues, making the process very time-consuming and frustrating for all involved. Independent third-party solutions providers, focused exclusively on delivering positive outcomes to their clients, are experienced at removing that friction and speeding up the process, and they can be a valuable resource in executing second-party data deals.
Insights derived from second-party data partnerships can power truly targeted and relevant messaging that propels customers toward the point of purchase and has an impact on the bottom line. Applying the recommendations mentioned above to your marketing strategies ensures you’re on the right track to realizing measurable outcomes in 2017.
Included in this post are some key recommendations from a September 2016 commissioned study conducted by Forrester Consulting on behalf of ownerIQ.