How to succeed in a first-party data future

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Delivering personalisation at scale is fast becoming the key differentiator for brands to achieve market advantage, particularly in a business landscape that can only be described as turbulent.

With government regulations such as the Australian Privacy Act draft revisions offering stricter provisions than before, delivering personalisation is proving to be challenging.

In this new world governed by increased data regulations and related legal costs associated with data violations, adhering to consumer advocacy and privacy regulations has become paramount for any brand.

Understand your new playing field

The Adobe Trust Report 2022 found 66 percent of customers will stop buying if companies experience a data breach, and 68 percent will stop buying if companies disrespect their data preferences. For brands, how they create a sustainable ecosystem built around trust and value, and how they own and utilise first-party customer data to personalise experiences, will be the biggest growth lever over the next three years.

This has made it imperative for brands to be on their customer’s side right from the beginning so they can nurture and grow a mutually valuable and transparent relationship in the long run.

Build your game plan

To take a lead in the first-party data future, you need to proactively translate your data strategy into action. Here are four steps that will help you accelerate your preparedness in your journey towards driving customer experience (CX) transformation.

1. Refine your business practice

To become an experience-driven business, solely adopting the right technology will not be enough. Instead, you need to view personalisation as an organisation-wide opportunity and build an operating system that’s receptive and supportive of customer needs. Understand what they want, where they are in your customer lifecycle, and how you can help them in a shorter timeframe while increasing effectiveness.

Having a solid plan with insights from trusted advisors is mission critical to organisational engagement and management, leading to an Op-Model that accelerates your operational systems to align with an experience-driven business. Having an outside perspective from a trusted expert also provides insights that help get a framework in place for people, processes, and technology to work together and deliver a personalised CX.

As businesses look to embrace the customer in a first-party data future, key players and market giants will have to find new ways to provide value—introducing uncertainty and a shift in power in the market. Keeping data, loyalty, and trust as the defining factors of your long-term personalisation strategy will bring customer interaction to the core of your business.

In a future governed by strict privacy regulations, authenticated audiences and a marketing strategy driven by quality customer data can be your competitive advantage.

Through change emerge opportunities to compete. And brands that realise this will be able to turn potential cost centres into revenue drivers, preparing themselves for the long haul.

3. Own the relationship

Hacking past strategies to realign with current personalisation goals won’t be enough to give your business a market advantage. Rather, building new data strategies that mitigate complexities and create mutual value and scale will be key.

You need a unified customer identity where the customer is at the core of your experience strategy and Op-Model, managed by streaming data exchanges and privacy-compliant real-time networks.

Look to replace some of the third-party data—that you will be losing sooner or later—by integrating a network of second-party data providers to target your key markets and strategic segments.

Develop product and service offerings that are relevant to your customers with high one-to-one value and use the first- and zero-party data you get in exchange to create acquisition and retention strategies that further interest and reward your customers.

4. Position your brand to win

Having a first-mover market advantage is good but being the last-standing business is better. Creating a strong value proposition that is fair and transparent will directly encourage your customers to provide zero-party data and engage in first-party interactions. This could be through loyalty programs, special offers, or ongoing value or subscription-based services that reward relationships.

Lastly and most importantly, always walk the privacy talk—do what you say you will and say it clearly. Talk to your customers openly and invite them to choose from available data-sharing relationships based on the value you and your second-party data providers uniquely offer.

Ready? Get, set, go

To kick-start your long-term personalised CX strategy, and position your business to win, first ask these relevant questions:

Take the next step now. Get in touch with Adobe Professional Services experts for a personalised one-on-one session on building second-party data partnerships.